With the investors increasingly taking a participatory role, there is an increased need for transparency in addition to providing the investors a consolidated view for self-management to a certain extent. The primary need, in addition to financial advisory services, is to manage the portfolio - including assets held both within and away.
Traditional firms - that are now offering relationship and advice - are forcing a change in business models that were traditionally discretionary - solo. Likewise, players in the wealth management space are responding in the form of increased momentum towards more sophisticated customer segmentation, products and services and delivery channels.
The demand for an end-to-end solution which can put the wealth management process on auto-pilot and for advice from the clients is rising, coupled with an increasing desire to participate in the process and review the same. Other emerging trends in the market include:
- Growing interest in integrated financial planning and portfolio management.
- Investors demanding a holistic view of their entire portfolio - Data aggregation (capture of held-away assets) fast becoming a commodity feature of wealth management platform.
- Self-help tools increasingly being sought after by different segments – Investors are showing high interest in online channels, and the key interest is for a holistic view of portfolios online.
- Increased focus on retirement draw-down or distribution strategies. Demand for protection planning tools to combat rising cost of healthcare coupled with increased longevity of retirees.
There is also a great desire for ease-of-use and simplicity. Sophisticated applications that offer these two features along with real-time information of all assets (Example, real-time bank balances) are what the market is looking for. It is also imperative to automate more of relationship management, the demand for which is growing.
We are also seeing the emergence of banks as key players in this field. For banks to tap into this market and gain a share of this profitable business, they are in need of a wealth management solution that is holistic, transparent, comprehensive, scalable and customizable for the unique demands from multiple customer segments. Further, it should offer self-help through an advisor workstation and portal, track portfolios held across banks/firms, while also helping wealth managers play the role of consultants and advisors.
A price-discriminated set of offerings, standardized processes, unbiased advisory services built on in-depth research are some of what banks will have to look into soon.