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On their own terms: How Wealth Managers are positioning their operations to engage a new generation

With members of the “Baby Boom” generation owning 57% of the wealth in the US, a movement of assets from one generation to another on a scale not seen before is impending.

Bob Moitoso

Part of the Linedata Blog Series

Institutional wealth management is facing a foundational time of transition. With members of the “Baby Boom” generation owning 57% of the wealth in the US, a movement of assets from one generation to another on a scale not seen before is impending.

Institutions that manage these assets must grow their businesses by straddling a line between client retention and acquisition; how can they continue to demonstrate their worth as stewards of their client’s wealth while adapting to the needs and desires of younger generations? As they plan for these shifts, we hear from wealth managers that they need a provider who is agile and easy to work with, who offers up new solutions to persistent challenges and who operates with forward-looking business models have integrate these important factors:

  • Scalability: It is not enough to simply demonstrate a platform’s brute strength in managing thousands of accounts. Today’s wealth advisors are responsible for a larger number of client relationships than ever before and require a platform that can also optimize the workflow of managing those relationships with finesse. Offer them minimized administrative, repetitive tasks and alerts to actions that impact their book of business. They need workflows that are modular and exception based to anticipate the individual needs of each investor.
  • Digital Transformation: As the average age of both advisor and investor falls, the user experience has come into greater focus. The preferences of younger, tech-savvy investors vary greatly compared to those of past generations. Some choose an active, independent role in managing their assets, others want a more “hands on” approach from their wealth managers, though not in the traditional “sit down over a dozen oysters to go over your portfolio” model. Younger investor’s appetites for a wider range of investment types has grown significantly. Working with cloud-based technology creates the opportunity for the smaller, more frequent engagements that a tech savvy generation demands. It allows for a process that respects each account as unique and customizable on an individual level.
  • Independence: Institutional wealth managers are looking for independent software providers that aren’t owned by a competitor. They need to be able to adapt their existing models to new technology, thereby being able to maintain the value built through their individual approaches to doing business while gaining the benefits of operational innovation.

Institutions that manage these assets must grow their businesses by straddling a line between client retention and acquisition; how can they continue to demonstrate their worth as stewards of their client’s wealth while adapting to the needs and desires of younger generations?

The world of wealth management is transforming faster than ever before. Shifting client demographics and preferences mean businesses needs to adapt constantly – and adapt fast. Our world is reinventing itself, getting leaner, more automated and more competitive. As wealth managers envision all the things they want their businesses to be, they need a trusted partner by their side to manage the complexity and provide a truly differentiated experience that drives their business forward.

 

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