Around our key sections of the client, the adviser, and the business, we have brought together some data insights to underscore the main trends that we see in the market. Many of these themes are explored within the report’s articles, but we have summarised the data findings below.
Indeed, crucially the wealth management industry will grow to be worth more than US$500 billion by 2030, with a projected US$90 trillion increase in liquid assets from all investors globally.
The client base will change, with women expected to inherit 70% of the wealth. And the demand for wealth management services from an emerging wealthy, mass-affluent segment is expected to grow too. However, only 36% of firms are exploring mass-affluent services when this segment accounts for 11% of the global population and, thus, an opportunity not to be missed.
In the context of “The Great Wealth Transfer”, wealth managers are expected to adapt to leverage the opportunity – or at the very least retain their existing client base. Wealth transferred by 2045 will total US$84.4 trillion, but only 13% of those set to inherit are expected to retain their relatives’ advisers.
Family offices, particularly, are set to benefit from “The Great Wealth Transfer”. The younger generations have higher expectations around service delivery and levels of personalisation, which the family office model can more readily meet. Up to 70% of clients believe the degree of personalisation is one of the most critical factors when choosing a wealth management adviser. Though 34% of investors say they will likely transfer 20% or more of their assets to ensure they get ‘a better digital experience’.
The service and its delivery are also pertinent when it comes to investing, with interest in ESG overlays and cause-based investment being high. More than half of family offices (56%) globally allocate to ESG investment and retirement planning. ESG investing and access to digital assets and private markets are increasingly important for younger clients.
With all that in mind, the message is clear: wealth managers must adapt to meet the future expectations of their clients or lose them.
You can read and download the full WealthTech 2023 Report here.
