3 Factors Revising Wealth Management in 2020
The emerging trends of fintech and tech innovations have been the driving force for the continuous progress in wealth management services. The wealth management services would traditionally provide personal financial advice to clients. But, the advent of technology has transformed the work culture of the finance sector by easing the tiring and time-consuming process and has brought it to the customer's fingertip. In the present scenario, millennials have grown to be a huge part of the consumers and thus, the demand for digitalization in the finance industry has increased tremendously leading to drastic transformation throughout the industry.
Let us take a look at a few trends that are expected to transform the wealth management in 2020.
The growing number of millennials clients has induced the use of digital solutions. Unlike the older generation, millennials prefer to converse through chat and avoid personal meetings or phone conversation. Also, millennials choose to manage their financial transactions all by themselves using digital solutions. And they expect a spontaneous response for their queries and regular updates on their financial status through social media or financial apps.
Technology Grabs the Focus
Entering the next decade, tech grows even stronger in influencing wealth management. AI, applications and digital platforms have attracted the attention of wealth management. Gone are the days, when the clients investigated the firm's efficiency and response pace, the tech advancement has influenced the clients to make sure the firm's technology is proficient. Thus, the company understanding and practising the technology would attract new clients as well as preserve their existing ones in the years to come.
Wealth Manager as a Profession
Technology enables people to create a network and allows them to learn varied things on the go. Thus, even common people can gain wider knowledge in finance, provided they are interested in that domain. A person with sound financial knowledge could make wealth management as his profession and serve as a wealth manager.
As stated by Aditya Agarwal, Co-founder of Wealthy, "Technology has made the financial industry more accessible and comprehensible to regular users. An emerging trend we have observed in the FinTech industry is how technology is enabling individuals who have a knack for financial matters, take a step forward to become a Wealth Manager. With just a smartphone, individuals with a good understanding of the sector can be empowered to offer advice and counsel to those in their circle and can also choose to offer their services on a FinTech platform at a professional level. A Wealth Manager’s service is key to bridging the trust gap that a customer may face while using a Wealth Management app/platform and also provides the individual with a flexible job with a steady source of income."