● Wealth management would be hybrid in the future: Integrating digital and physical aspects: The basis of the wealth management sector has always been and will remain human relationships and partnerships.
● Alternative asset classes have emerged: In addition to passive investing, investing in unlisted businesses, private equity, investing in antiques and collectibles, and, most recently, non-fungible tokens (NFTs) and carbon credits, millennials are increasingly choosing non-traditional investment possibilities.
● Increasing regulatory vigilance: Regulatory bodies are paying greater attention to advisory companies’ fee structures, data security and privacy standards, adoption of AI/ML, use of cryptocurrencies, and ESG (environmental, social, and governance) funds.
● Financialization of savings is accelerating: Traditionally, physical assets like gold and real estate accounted for most of the wealth. However, investors are now favouring financial savings over tangible ones. They are more conscious that an excessive concentration of wealth in non-financial assets might produce unfavourable returns in the face of rising inflation.
● Financial planning is becoming more comprehensive: The new generation of investors integrates financial goals with moral and personal objectives. They seek more all-encompassing investment options that incorporate social welfare, impact investing, estate planning, and retirement planning.
● The current trend calls for hyper-personalization: A one-size-fits-all strategy is no longer effective with investors. Every client touchpoint, investment goods, marketing communications, or call center operations, needs to be personalized to increase customer loyalty and trust. They prefer meticulously chosen, precisely tailored, and contextually relevant offerings.