Wealth management is changing (#wealthischanging!) and technology is undoubtedly now right at the heart of the movement, whether looking from the perspective of a force that is driving change or a toolkit that can respond to it. Technology sits at the heart of the business model like it never has before. Of course, this should not surprise anyone, even though it might frustrate quite a few, as this shift is taking place all around us in many aspects of our lives.

Whether the arrival of technology at the heart of strategic decision making in wealth management (or any other business sector) creates frustration, confusion, anger, pleasure or opportunity, the industry still needs to engage to understand what is happening, react to it and make it work as best they can for their business needs. Not engaging is not a valid option.

We set up The Wealth Mosaic to support this knowledge-based approach. We want to lift the lid on the global solution provider marketplace for the benefit of wealth managers. What is out there, what do they do, where do they fit, who are they targeting, how are they developing, and so on. By doing that we become a useful resource for both sides, wealth managers and solution providers, and we can support a narrowing of the knowledge gap between them for the benefit of the whole sector. That is some of our headline thinking.

Around that we will look to engage the market and build knowledge tools of multiple types. It is not only our job to host knowledge, it is also our job to create it.

With that in mind, what is it then that we believe we will see more of in 2018? So here are a few thoughts from us of what we believe we will see, what we would like to see and what we believe the wealth management sector needs to see from Technology & Data solutions through this year.

• Regulatory technology (RegTech): regulation and compliance is not going away. If anything, it is getting more complex, overlapping and demanding. Throwing people at it is no longer sustainable, if it ever was, and the world of RegTech solutions has exploded. Now is the time for this segment of the Technology & Data marketplace to prove its worth because there is a clear need for relevant and accessible solutions.
• Artificial Intelligence & Big Data: What is it, how does it work and what are the relevant applications now and in the future? There is a lot of noise but still not enough industry-relevant understanding of the benefit. 2018 will see this topic area become a focus as the wealth management sector searches for its next generation of business tools.
• Wealth technology (WealthTech): similar to our thinking about AI and Big Data, we want to see a better understanding of what WealthTech is, a broader view of what is out there and a greater understanding of its relevance and future development for the benefit of the industry. If technology is centre stage for the industry, many firms are still operating in the dark. We want to shine the light on this area.
• Ecosystem thinking: #wealthischanging! The demands of this industry are now more complex. The #insideout thinking of old, where everything could be done by one firm or one provider is aged and outdated in this changing world. A newer, #outsidein approach which considers the broad ecosystem of needs, solutions and providers, with a thinking about how this knits together for the needs of your business and clients is needed.
• Partnerships & cooperation: similarly, for wealth managers and solution providers alike, there will be more emphasis on partnerships to overcome your challenges and deliver on your goals. No one has the answers and very few have the resources to cover everything. Yet, looking across the ecosystem and partnering where necessary could open up avenues of exploration, create new solutions and offerings and deliver on previously inaccessible business development channels.
• Deals & M&A: unquestionably, and again for wealth managers and solution providers, we will continue to see business deals taking place. Some will be relevant solely to the interests of the buyer / vendor / target, while others could produce very interesting benefits for the marketplace (both in creating competition and reacting to it).
• FinTech fatigue: it seems that some wealth managers are suffering from FinTech fatigue. They are overwhelmed, limited for time and confused by all the noise! Two points: firstly, they need to get over it because it is not going away anytime soon; and secondly, it is also means that the FinTech market needs to do a better job in understanding the needs of their target buyers, and that firms like ours need to do a better job in supporting that process. Let’s close that knowledge gap.

For each area, and many other areas of relevance, the industry needs to be better prepared to understand and engage with change and what is out there in the marketplace to support them. In our experience, there is still too much #insideout and not enough #outsidein but this too is changing. When you think more deeply about some of the above, that the industry is changing should strike loud and clear. And let’s think about that as an opportunity, not a challenge.

Looking forward to seeing what of the above and more takes hold within the global wealth management sector through 2018 and beyond.

#wealthischanging #wealthknowledge #wealthsolutions #wealthmustadapt