Wealth Management Trends 2015

by Ashley Globerman,  Isabella Fonseca,  William Trout, September 11, 2015
Industry Trends
EMEA, North America

Abstract

Celent explores areas in which wealth managers and vendors are lagging and/or missing opportunities to position themselves for long-term growth.

In the report Wealth Management Trends 2015, Celent presents the most relevant market and technology trends over the past year that will continue into the near- and medium-term future.

The main trends highlighted in the report include:

  • Realignment of the wealth management business.
  • Ongoing disruption of advisor-based model.
  • Next-gen clients arising.
  • Digitization and channel expansion.
  • Creating efficiencies with platform consolidation and middle/back office improvements.
  • Increasing focus on advisor and end user tools.
  • Mutualization of costs.

“Wealth managers are reorienting their businesses towards stable fee generation, and broadening their services with new delivery models and channels,” says Isabella Fonseca, a research director with Celent’s Wealth Management practice and coauthor of the report.

“Shifts in the core client base, changing expectations, adoption of passive investing, and regulations have led to a fragmented market. Additionally, advances in digital technology have empowered clients to expect omnichannel and flexible delivery of low-cost services across the preferred channel regardless of firm segmentation, with collaboration tools, reporting, and aggregation,” says Will Trout, a senior analyst with Celent’s Wealth Management practice and coauthor of the report.

This report differs from others the industry; it presents Celent’s analysis by rating each trend and technology in three domains: disruptive potential, maturity of technology, and widespread adoption.

“Some of the most disruptive technologies are still rated low in terms of maturity and adoption, whereas technologies and services that have widespread adoption are typically complementary to pre-existing models of service and delivery,” says Ashley Globerman, an analyst with Celent’s Wealth Management practice and coauthor of the report.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

Introduction

2

 

Celent’s Five Underlying Assumptions

2

 

Key Research Questions

3

Top Wealth Management Trends

4

 

Realignment of Wealth Management Business

4

 

Ongoing Disruption of Advisor-Based Business Model

5

 

NextGen Clients Are Arising

6

 

Digitization and Channel Expansion

8

 

Creating Efficiencies with Platform Consolidation and Middle/Back Office Improvements

9

 

Increasing Focus on Advisor and End User Tools

9

 

Mutualization of Cost

12

Impact of Trends

13

Analyzing the Trends

15

 

Financial Planning Technology

15

 

CRM Technology

16

 

Platform Consolidation and Integration

16

 

Client Onboarding

17

 

Artificial Intelligence

18

 

Digital Strategy

19

 

Automated Advice

19

 

Hybrid Delivery

20

 

Self-Directed Tools

21

 

Mobility

22

 

Social Media

24

Conclusion

25

Leveraging Celent’s Expertise

26

 

Support for Financial Institutions

26

 

Support for Vendors

26

Related Celent Research

27

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