2018 brought significant fluctuations in the market. Despite those challenges, wealth management remained one of the strongest sectors of financial services.
In their recent report, Deloitte cautions advisors against resting on their laurels when considering making changes to their business. Unless they’re looking at retiring within the next 5 years, advisors should be looking at where they need to make changes to account for a potentially extended market downturn and the increase in low-cost or fee free products among other things.
Deloitte shared their top 10 predictions for financial advice in 2019:
10. The robo-adviser’s influence– continues to grow and influence new investors on the advice market.
9. Hybrid model takes center stage– digitization and automation effect how advisors serve their clients. Advisors are going to need to adapt their business to be open to the change.
8. More investments in digital client experience– more firms will invest in technology to improve the tools and products offered. Interactive digital tools will become a must.
7. Steady progress towards fiduciary– while there is no fiduciary standard currently in place, changes are being made by regulators around the globe.
6. Fighting fee compression– advisors operating commissions business alongside fiduciary accounts will need to be aware of fee compression.Related:
Advisors: Stop Touching Your Clients!Related:
Communicating with Investors in Uncertain or Volatile Times 5. Boosting price transparency– investors are challenging fees and looking for more transparency. Advisors may be forced to lower fees to avoid losing clients.
4. Continued growth in data, analytics, and AI– advisors will need to invest in analytics and artificial intelligence to improve client experience and security
3. Modernizing the back office— back office operations will turn toward digital solutions to improve customer tools and experience.
2. Aging populations driving opportunity– baby boomers are getting older. Their generation is looking for ways to preserve and transfer wealth.
1. Opportunities in Asia– Deloitte reports rapid growth in Asia and anticipates the UHNW segment to increase assets by 9% in the next decade.
