In early October, we released our fourth UK WealthTech Landscape Report 2023 (UK WTLR 2023). This edition featured 16 articles, split into our standard client, adviser, and business sections, plus an A-Z solution provider directory with 780+ entries.

Below we’ve provided a quick overview of the content from the report. 

Report at a glance

Data insights
Our data insights gave an ‘at a glance’ guide to headline statistics for the UK wealth management community.

While the UK is a wealthy country and perhaps punches above its weight in terms of the amount of wealthy individuals and the wealth that they hold, compared to its population, that wealth is increasingly concentrated at the top, according to the Equality Trust who, in 2022, highlighted that the richest fifth of the population held 36% of the UK’s total wealth.

According to UBS, there are currently 2.56 million dollar millionaires, accounting for 3.56% of the population. And the mass affluent, with around £50,000 to £5 million of investable assets, account for some £3.8 trillion as at the end of 2022 (about 67% of UK investable wealth). Royal London estimates that there are approximately 13.1 million individuals in the mass affluent market in the UK, including 3.7 million who are currently non-advised but are open to receiving financial advice.

According to LEK, approximately £1.2 trillion of client assets are already managed by the advisory community which the FCA’s data has numbering almost 28,000 advisers. However, the bad news is that there are not enough advisers to go round with the average age of advisers being in the mid 50s – and therefor closer to the end of their career than the beginning.

There is also a clear case for appealing to the younger generation. Indeed with “the Great Wealth Transfer” a 66% increase in annual intergenerational wealth transfers will occur, rising from £69 billion to £115 billion 2017 to 2027. Some 5.5 trillion will pass between generations within the next 30 years, according to the Kings Court Trust.

For the technology marketplace, the UK wealth management sector represents a clear opportunity for firms that recognise its changing nature. 

The client section looked at:

• Engagement and the tech means to do so – we interviewed Danny Cox, Head of Communications at Hargreaves Lansdown on the clear need to engage with investors, how current regulations offer the chance to align with technology developments, and how elements like nudging and data analytics play a key role.
• Relevant messaging to women of wealth – we also interviewed Carol Katz, Partner at Mischon de Reya who outlined the ways in which wealth managers can be more appealing to the growing segment of women of wealth.
• Serving tomorrow’s customer today – Sam Beeby, Associate Director at Cognizant focused on how wealth managers can win Millennial and Gen Z clients through three key development areas: brand modernisation, experience design and hybrid interaction.
• Tacking the Great Wealth Transfer – Christopher Baxter, Senior Solutions Consultant Global at aixigo explored the challenges and opportunities facing wealth managers in the Great Wealth Transfer and how personalisation will be key. 
• Digital wealth services – Tom Bucktrout, formerly with CREALOGIX put forward the view that digital wealth services can transform the processes of wealth managers and empower staff and clients alike. 

The adviser section looked at:

• Digital transformation for adviser productivity – Chris Handley, Strategy and Change Director at Rathbones, explained how the firm’s technological transformation process will support its investment managers and financial planners to be more productive and spend more time with clients.
• AI will democratise wealth management – Nils Frowein, CEO of additiv, outlined how AI, rather than replacing advisers will instead create opportunities to democratise the wealth management industry.
• Goals-based planning for financial objectives – Iwan Schafthuizen, Managing Director Business Development at Ortec Finance, outlines a roadmap for achieving financial objectives through a for goals-based planning approach. 
• Onboarding for Consumer Duty adherence – Fredrik Davéus, CEO of Kidbrooke, talks about onboarding tools to make sure Consumer Duty is more easily adhered to
• Tools for personalisation – Michael Basi, Head of Wealth Proposition (EMEA) at InvestCloud outlined the tools that help with personalisation.

The business section looked at:

• Consolidation activity and the importance of technology – Alison Ebbage, our Editor-in-Chief looked at consolidation across the UK wealth management sector and how to deliver scale technology is high up on the priority list as a key enabler.
• The importance of trust – Ian Ewart, with three compelling examples - cyber security, the family office environment, and embracing alternative investment classes, underscores the importance of trust.
• Niche service providers in the ecosystem – Sean Kiernan, CEO at Greengage, explained how offering a specialist service works within the wealth management community.
• The AI advantage – Grayson Greer, Managing Director - Global, at First Rate, talked about data, talent, and tools to drive AI adoption.
• Wealth platform wins – Sameera Udayanga, Head of Engineering at WealthOS, looked at the optimal features of back end architecture.
• Consumer Duty – initial impressions – Tara Swaminathan, Solicitor, and Charlotte Gregory, Partner at Capital Law, considered the newly implemented Consumer Duty and its likely impact on the wealth management sector.

You can access the full UK WealthTech Landscape Report 2023 here.

We’re looking forward to bringing you more in 2024. To see our report line-up for 2024, as well as our full offering, check out our Work with Us in 2024 catalogue.

Previous articles

Read our recent ‘A Year in Review’ article here.
Read our recent ‘Looking back on 2023: WealthTech 2023’ article here.

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