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The Future of Investment and Wealth Management

The past years have ushered revolutionary changes to the world of wealth and investment management. Some were minor and barely caught any attention, but others – like digitalization and automation – had effects that significantly altered the way the industry does business.

With such huge developments taking place, there ought to be plenty more in store. So, what does the future of wealth management look like? These current trends should give us some clues.

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Retirement planning experiences a surge in popularity

Sad but true: many people didn’t put much thought about their financial situation come retirement age. According to surveys, one out of three retirees in the country barely has enough to sustain their needs.

If there’s a silver lining to this situation, perhaps it’s the awakening that took place among the working class. Millennials are becoming proactive in planning and investing for retirement. And as this trend gains more attention, there’s very little doubt that retirement planning will become an even bigger hit in the future.

The challenge for the wealth management industry then is to develop better retirement packages and investments to cater to the varying needs and demands of the masses.

Easier access to more accurate data

Nowadays, clients and investors are wiser and more critical of their assets. But as long as the industry continues to strive in looking for ways to address the clamor for enhanced data accuracy and transparency, then there’s enough reason to believe that we will find ourselves in a future where investors are more involved and better informed of the status of their investments.

Millennials are a hard-to-please generation. Should wealth management firms wish to earn and retain customer loyalties, then they have to be prepared to go the extra mile. In most cases, this would mean investing in AI and technology to improve accountability and data precision.

Hybrid approaches to wealth management

While it’s true that technology can improve data precision by leaps and bounds, the “human factor” is still indispensable, especially when formulating customized investment and asset management options. The idea then is to take the best parts of both systems and develop a hybrid approach to wealth management that yields impressive results.

Wealth management firms, managers, and advisors have to figure out a way of delivering

a results-oriented, hybrid approach that won’t intimidate the public.

Inter-industry collaborations

The wealth and asset management industry is a very competitive sphere. And as with any other business pursuits, the relationships that an investment company builds with organizations from different sectors can set it apart and give it leverage.

Collaborations with the wealth-tech and e-commerce industries, for example, can contribute innovations that would make wealth management services more efficient than ever. However, for these partnerships to realize their potential, investment firms have to open themselves to new possibilities and fully commit to the change.

Embracing more “impactful” investment options

The spotlight shines on sustainable investing as the new breed of investors push to draw awareness around socially and environmentally conscious investment options. Millennials are showing the world that it is possible to drive change while making a profit, and they’re very good at taking their point across.

With the attention that sustainable investments are currently getting, it’s only a matter of time before the demand blows up in scale. Wealth managers think so too, apparently, as they are putting more effort at developing financial plans that are anchored on the ESG philosophy.

Though we can’t tell for certain what the future holds for the wealth management industry, these trends ought to give us an idea of what to expect. Will it be everything we hoped it would be? That, we’ll have to wait and see.


About The Author

Rachel Harper is the Content Marketing Strategist of Bennett & Porter, a wealth management and insurance firm based in Scottsdale, Arizona. When not writing, she makes use of her time reading books and playing bowling with her family and friends.

The Future of Investment and Wealth Management

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