Changing Wealth Management Techniques with Latest Consumer Trends

The year 2022 was significant for the worldwide wealth management industry. Wealth manager scrambled to modernize service offerings and allows remote servicing and distribution in the aftermath of the global pandemic.

As a result of political concerns, global mobility increased or record cross-border capital flows occurred as investors sought sanctuaries for their cash. Think forward to 2023, global economy faces a number of obstacles.

Inflation and headwinds take center stage in the news just as the world is recovering from the worst effects of the COVID-19 epidemic. Along with other things, these advancements will have an impact on how wealth managers think, invest, and work. While there will be problems, there will also be opportunities for those who can adapt.

The wealth management sector has seen a paradigm shift in recent years due to shifting demographics, a rise in millennial investors, and fast digitalization. Today’s investors are better informed, have access to professional information and tools, and actively plan their finances. Self-reliance is becoming more popular than depending on one’s parents to support one’s lifestyle. Millennial investors have distinct perspectives on guidance, as well as new attitudes and expectations, which have an impact on how older investors choose and use wealth services.

The most modern and forward-thinking institutions will utilizes this period to fine-tune their strategy, recognize significant trends and invest in them, improve operational efficiency and cut superfluou costs, and expand their product and service offerings. As a result, when normalcy returns, they will be in a strong position.

Latest Consumer Trends of Changing Wealth Management Techniques

In 2023, we predict that these will be just a few of the major trends affecting wealth management decision-makers.

  • Hyper-personalization

    One of the most prevalent critiques leveled at significant financial entities is that they do not know or understand their consumers well enough. The ability to structurally exploit existing consumer data will enable the generation of findings that may lead to bespoke or semi-bespoke offerings. These will, at a minimum, generate a sense of a unique, personalized service that, if properly formulated, is much more likely to appeal to the targeted subset of clients.

    Researchers predict a much wider usage of data analytics to drive hyper-personalization at scale as our capacity to leverage both structured and unstructured client data grows, and as we see a greater focus on cutting operational costs and expanding market and wallet share.

  • Adoption of Fintech

    With rising expenses and clients expecting more than ever, wealth managers, particularly those in larger and less specialized customer segments, will recognize that the quickest way to improve a product or service offering may be to outsource to a specialist service provider or vendor.

    Researchers expected more general adoption of bank/fintech partnerships in more specialized sectors, such as news and content management or crypto trading. Clients may seek direct ties with well-established fintech providers to address some of their wealth management needs, particularly from ‘non-financial organizations’ with whom they already have a trusted relationship, such as telcos or super-app providers.

  • Digital onboarding is a top priority for businesses

    In times of health crises, digital onboarding is a top priority for businesses. Digital onboarding is the automatic acquisition of people through a digital device in an agile, simple, safe, and guaranteed manner. The first information-gathering step is minimized, made fluid, and simplified from the client’s perspective due to the safe digital delivery of the relevant papers.

    The simplicity of the preliminary phases considerably improves the client experience. For the wealth management firm, digital onboarding streamlines the setup of a new client account and decreases administrative interactions with the client. Furthermore, the dematerialization of documents decreases the use of paper and eliminates the need for the physical storage of paper.

  • The provision of a digital reporting experience.

    In today’s increasingly competitive capital market, a great reporting experience can be critical in retaining clients and winning new mandates. Investors are increasingly looking for wealth managers who provide a digital reporting experience via a client portal, allowing them to monitor top-level performance and risk data in near real-time and delve into specific information at the individual security level. For asset managers looking to differentiate their services, static, periodic reports are no longer sufficient.

  • ESG Investing

    Several studies have demonstrated that a younger generation of investors is looking for investments that reflect their core beliefs, and those that are unwilling or unable to meet client demands for ESG-compliant portfolios risk losing those clients to rival service providers.

    Despite the fact that the product landscape has progressed to the point in which there are now a plethora of tools available to assist with the development and implementation of a robust ESG framework, wealth managers continue to be reticent to adopt these notions as a core pillar of their service. The misconception that ESG-compliant portfolios lag behind non-compliant portfolios has been dispelled.

  • The Transfer of Generational Wealth

    This trend will continue to be crucial for wealth managers who target customers with higher networth because it is predicted that between 40 and 60 trillion dollars will be transferred from the initial baby boomers to subsequent Gen X and Gen Y children.

    Aside from ensuring that an organization has a service offering that appeals to a younger client base, they will also want to guarantee that their consumers can receive valuable assistance in challenging sectors such as medicine, planning for retirement, and inheritance tax.

  • The growth of alternative investments continues

    Private equity, real estate, and hedge funds are just a few examples of alternative investments that have gained traction in recent years. We anticipate that this trend will continue in 2023, as more investors look for ways to diversify their portfolios and potentially earn higher returns. Asset managers who can provide a diverse range of alternative investment solutions will be in a strong position to attract and keep clients.


As we approach 2023, we expect a stronger emphasis on fintech adoption, ESG-compliant frameworks, and hyper-personalization for the wealth management sector to enter the decision-making frame. Likewise, there will be significant generational wealth transfer, as well as a rapid rise in customized or custom indexing.

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