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The Future of Wealth Management

What is in store for the future of wealth management?

If you are concerned about increasing the value of your portfolio and using various financial products so that your eggs are not in a single basket, then wealth management is for you. Traditionally, this included an illuminating consultation with an experienced wealth manager who weighed in on your needs, wants, and particular situations to develop a comprehensive strategy.

Wealth managers provide professional expertise in estate planning, retirement planning, accounting, financial products, and taxation. Newbie clients who don’t know much about investment risks value this opportunity to voice their reservations about having some products in their portfolio.

Wealth management goes beyond planning or accounting for investors, family corporations, partnerships, and companies. Some wealth managers have an executory function that sets into motion the plans that address present and future needs for growth, expansion, and income generation from multiple streams.

How is the Wealth Management Industry Changing?


In 2021, the primary financial goal for over 50% of clients was to ensure sufficient income. In contrast to 2019, taxes were uppermost in the clients’ minds. Wealth managers are not exclusively found in banks and investment houses. Independent companies like https://www.sharpllc.com/family-office offer numerous services to ensure continued income for family corporations:

  • Accounting and taxation services 
  • Investment advise 
  • Wealth succession 
  • Cash flow administration 
  • Philanthropy administration 
  • Retirement Planning 
  • Legal services 

The current approach is more transparent and collaborative, with measurable metrics. With changing financial goals, it’d be best to look for reputable wealth management advisory providers to secure a clear financial roadmap.

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RPA Services For Accounting

Robotic Process Automation (RPA) is not something only the biggest firms have access to. Research shows RPA services for accounting software improve metrics like compliance, accuracy, and productivity while reducing costs. Around 45% of tasks can be automated, including everything from basic tasks like reconciling data to generating strategic decisions.

RPA services have revolutionized wealth management in so many ways. Unlike manual systems, RPA can deliver 24/7, speed up processes, and service more clients while leaving tasks that require more in-depth analysis, critical thinking, and strategizing to humans.

Robo-advisors are algorithm-driven digital device platforms. Amazingly, much trust is placed in Robo-advisors to the tune of USD$ 1 trillion. It was allocated for an optimized portfolio, including investment and retirement planning in 2020. That said, there are still investors who need to make the final step of turning over the money and transferring assets. 

Fintech Wealth Managing

In 2021, 8% of clients used fintech solutions such as neo-banks for wealth management. In 2021, clients favored using fund managers, but this is projected to decrease, with fintech projected to grow to 14% by 2024. 

New-age banks operate online without a brick-and-mortar counterpart to provide digital solutions for payment, transfers, deposits, lending, and the like. Their value proposition would be speed and lower cost. Because of this, fintech is creating a huge disruption in this space.

Engaging Through Digital Channels in Real Time

Wealth managers leveraged digital channels to reach out to clients. Aside from social media, other electronic platforms were used. This enabled wealth managers to reach a wider customer base across generations. Engagement is automated and AI-driven but has room for personalization.

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Research Availability

In the past, purchasing research data was so costly that only big banks and investment firms could afford it. This access to valuable information gave their clients first dibs at promising investments. 

Today, data is available at a reasonable cost, and the savings get passed on to the investor. Wealth planners in wealth management no longer have to be formally employed at the bank or financial institutions. Independent planners offer stiff competition to big players.  

Wider Mass Base

Wealth managers no longer limit their market to the affluent and have yet to include a mass base of retail customers. Retail banks will also cater to the same clientele and offer intelligent and profitable advice.

The price-conscious, mass-market clients who had responded through the digital world can now avail of reasonable costs that enable them to achieve goals for less.   

Another type of wealth manager targets managing a multi-level family wealth of those belonging to those with high net worth. Though the ultra-rich are the target market of choice, more risk-tolerant clientele and millennials have considered investments.

The Rise of Environmental, Social, and Corporate governance (ESG) Investing

Benjamin Franklin espoused ‘doing well, by doing good’ and it seems that today’s investors are doing just that. More investors are committed to using their money for sustainable ventures that align with their values, causing ESG investment to rise. 

Climate change, social issues, and global politics are impacting investor behavior to the point where ESG investing has gone mainstream. For instance, in 2019, investors valued long-term profits the most. Two years later, they cared about brand reputation alongside profit. You can expect to see ESG becoming part of more conversations in wealth management going forwards.

Management of Crypto Assets

Wealth managers must now know about purchasing and selling digital assets, as many investors have shown interest in cryptocurrency and blockchain. Some believe this to be the wave of the future, managing bitcoin assets alongside traditional investments. The challenge is great, but tools like Robo-advisors make multiple crypto accounts tractable. 

Wealth Management in the Future – Summary

The way wealth management is done has changed over the years. Clients prefer initial engagement to be digital that can offer personalized, intelligent, and actionable advice. With more people interacting through apps and mobile phones, the pressure for faster and more personalized is one of the determinants for success.   

Investors currently are not limited to the big players among investors. A wealth manager can chat with a client and manage wealth in many ways. Fintech and Robo-advisers have changed the scene, making transactions faster and more transparent.

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