ThoughtLab
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Wealth management leaders to study future of the industry

Thursday, November 02, 2023

Forward-looking study will analyze how worldwide shifts in investor demographics and needs are expected to transform the wealth industry

NEW YORK - ThoughtLab, a leading global research firm, has joined forces with a group of wealth management leaders to analyze how technology innovations, mounting regulations, heightened competition, sustainability pressures, and demographic shifts will redefine investor needs and experiences and reshape the industry at a time of growing economic uncertainty.

To prepare for this next era of wealth management, investment management firms need a clear view into the changing expectations of today’s diverse range of investors over the next three years and beyond—and how competitors are rethinking their investment products and services, go-to-market strategies, value propositions, and business models to thrive in a rapidly transforming industry.

A probing look into the future of wealth management

To investigate these trends and what they will mean for the industry, ThoughtLab is working with wealth industry leaders to conduct a rigorous research initiative called Wealth Management Megatrends: Preparing for disruptive investor, digital, and industry change. ThoughtLab is conducting the research in partnership with Deloitte and FNZ, and with the sponsorship of Amazon Web Services, Genesys, and London Stock Exchange Group (LSEG).

Research partners:

• Deloitte: strategic and transformational change within the wealth industry

• FNZ: the global, end-to-end wealth management platform that integrates modern technology, business, and investment operations

Research sponsors:

• Amazon Web Services (AWS): specialized cloud solutions for the financial services industry

• Genesys: provider of AI-powered experience orchestration helping financial firms engage with customers across voice and digital channels through its all-in-one CCaaS platform

• London Stock Exchange Group (LSEG): wealth management data and actionable insights

This comprehensive study will consist of two worldwide surveys conducted in October to November 2023: one survey will target 2,000 worldwide investors across demographic and psychographic profiles, and another will cover 250 wealth and asset management providers. To get a broad perspective, the program will include insights from an advisory board of leading wealth management executives; in-depth interviews with industry experts and practitioners; and economic modeling and analysis by ThoughtLab’s team of economists.

The study will answer critical questions on what lies ahead for the wealth management industry, including:

• The investor of the future: How will economic, demographic, and lifestyle shifts change investors and their expectations? How will wealth management firms reimagine their strategies for younger investors, while catering to the needs of older generations?

• Hyper-personalization: As investors become more diverse and wealth goal oriented, what levels of personalized support and advice will they expect? How will wealth management firms provide personalization at scale and at a price point acceptable to investors?

• Frictionless investing: In the years ahead, will investors expect investment firms to provide the same frictionless digital experiences they get from digital retailers and Big Tech firms? How will client experiences improve with the development of AI, blockchain, and Metaverse?

• Next era of democratization: Retail investors increasingly seek access to products and services now reserved for the rich, such as hedge funds, IPOs, and private equity. How will investment providers democratize and demystify offerings in the face of evolving regulations?

• Sustainable investing becomes the norm: If trends continue, by 2030, sustainable investment will be mainstream. How will this change the way investors assess their portfolios? What sustainability data, and what kinds of returns, will they expect? And what will be the response?

• Next-level innovation: AI, blockchain, Metaverse, and other innovative technologies—enabled by the cloud—will trigger a flurry of innovation that will redefine all aspects of wealth management. What opportunities and risks will these technologies create?

• Shifting roles of people and machines: In a digital world, machines will take on many of the tasks previously performed by people. Which activities will still require a personal touch? How will advisors use new tech—such as generative AI—to provide enhanced services to clients?

• A redrawn competitive landscape: These cascading changes likely will trigger a market shakeout and consolidation in the years ahead. Which types of firms—from inside and outside the sector-- will be the winners and losers as the industry shifts to digitally enabled platform-based models?

“Investors hold the key to the industry’s future. By making them the focus of our research—and drawing on the views of industry experts, practitioners, and ThoughtLab economists—we will provide actionable insights into how wealth management firms will need to rethink their strategies for the next era of digital wealth management,” said Lou Celi, CEO of ThoughtLab.

As part of this open research initiative, the study group will provide regular updates on the program, along with the latest analysis, useful data resources, and valuable insights, to the global wealth management community. The research program will continue over the next several months, with the full study findings, actionable insights, and related decision-support tools to be released in early 2024.