Forward-looking study will analyze how worldwide shifts in investor demographics and needs are expected to transform the wealth industry
October, 2023 (New York, NY) –ThoughtLab, a leading global research firm, has joined forces with a coalition of wealth management leaders to analyze how technology innovations, mounting regulations, heightened competition, sustainability pressures, and demographic shifts will redefine investor needs and experiences and reshape the industry at a time of growing economic uncertainty.
To prepare for this next era of wealth management, investment management firms need a clear view into the changing expectations of today’s diverse range of investors over the next three years—and how competitors are rethinking their investment products and services, go-to-market strategies, value propositions, and business models to thrive in a rapidly transforming industry.
A probing look into the future of wealth management
To investigate these trends and what they will mean for the industry, ThoughtLab is working with wealth industry leaders to conduct a rigorous research initiative called Wealth Management Megatrends: How worldwide shifts in investor needs, behaviors, and demographics will remake the wealth industry. ThoughtLab is conducting the research in partnership with Deloitte and FNZ, and with the sponsorship of Amazon Web Services, Genesys, and London Stock Exchange Group (LSEG).
- Deloitte: strategic and transformational change within the wealth industry
- FNZ: the global, end-to-end wealth management platform that integrates modern technology, business, and investment operations
- Amazon Web Services (AWS): specialized cloud solutions for the financial services industry
- Genesys: provider of AI-powered experience orchestration helping financial firms engage with customers across voice and digital channels through its all-in-one CCaaS platform
- London Stock Exchange Group (LSEG): wealth management data and actionable insights
This comprehensive study will consist of two worldwide surveys conducted before the end of 2023: one survey will target 2,000 worldwide investors across demographic and psychographic profiles, and another will cover 250 wealth and asset management providers. To get a broad perspective, the program will include insights from an advisory board of leading wealth management executives; in-depth interviews with industry experts and practitioners; and economic modeling and analysis by ThoughtLab’s team of economists.
The study will answer critical questions on what lies ahead for the wealth management industry, including:
- The investor of the future: How will economic, demographic and lifestyle shifts change investors and their expectations? How will wealth management firms reimagine their strategies for younger investors, while meeting the needs of older generations?
- Hyper-personalization: As investors become more diverse and wealth goal oriented, what levels of personalized support and advice will they expect? How will wealth management firms provide personalization at scale and at a price point acceptable to investors?
- Frictionless investing: In the years ahead, will investors expect investment firms to provide the same frictionless digital experiences they get from digital retailers and Big Tech firms? How will client experiences improve with the development of AI, blockchain, and Metaverse?
- Next era of democratization: Retail investors increasingly seek access to products and services now reserved for the rich, such as hedge funds, IPOs, and private equity. How will investment providers democratize and demystify offerings in the face of evolving regulations?
- Sustainable investing becomes the norm: If trends continue, by 2030, sustainable investment will be mainstream. How will this change the way investors assess their portfolios? What sustainability data, and what kinds of returns, will they expect? And what will be the response?
- Next-level innovation: AI, blockchain, Metaverse, and other innovative technologies—enabled by the cloud—will trigger a flurry of innovation that will redefine all aspects of wealth management, from new products to new business processes. What opportunities and risks will these technologies create?
- Shifting roles of people and machines: In a digital world, machines will take on many of the tasks previously performed by people. Which investment activities will still require a personal touch? How will advisors use new digital tools to provide enhanced services to clients?
- A redrawn competitive landscape: These cascading changes will likely trigger a major market shakeout and consolidation in the years ahead. Which types of firms will be the winners and losers as the industry shifts to digitally enabled platform-based models?
“Investors hold the key to the industry’s future. By making them the focus of our research—and drawing on the views of industry experts, practitioners, and ThoughtLab economists—we will provide actionable insights into how wealth management firms will need to rethink their strategies for the next era of digital wealth management,” said Lou Celi, CEO of ThoughtLab.
As part of this open research initiative, the study group will provide regular updates on the program, along with the latest analysis, useful data resources, and valuable insights, to the global wealth management community. The research program will continue over the next several months, with the full study findings, actionable insights, and related decision-support tools to be released in early 2024.
For more information, contact:
Lou Celi, Chief Executive Officer
Anna Szterenfeld, Editorial Director
About the coalition
ThoughtLab is an innovative thought leadership firm that creates fresh ideas through rigorous research and economic analysis. We specialize in assessing the economic, financial, and social impact of latest technology on cities, companies, industries, and world markets. Our services include fielding business, consumer, investor, and government surveys; organizing executive interviews, meetings, and advisory groups; conducting economic modeling, AI sentiment monitoring, benchmarking, and performance analysis; and developing white papers, eBooks, infographics, and customer-facing analytical tools.
Deloitte’s global wealth management group acts as stewards of change within the industry, supporting firms and the ecosystem players that surround them as they tackle heart-of-the-business issues, refine their strategy, and transform their business. The Deloitte team includes top wealth management talent from around the world who are well-informed subject matter experts. We provide services across audit, tax, consulting, and financial and risk advisory, leveraging leading-edge best practices gained from engagements across the globe. We believe the future of wealth management transcends traditional wealth thresholds and channels—with advice as the distinct offering—and we can help you transform your business to achieve this. Learn more at our website.
FNZ is a leader in global, end-to-end wealth management platforms, partnering with over 650 of the world’s leading financial institutions and over 12,000 wealth management firms. With 5,000+ employees in 30+ global locations, FNZ’s mission is to open up wealth, helping everyone, everywhere to invest in their future. FNZ removes friction from wealth management, freeing its partners to create hyper-personalized and differentiated experiences for their advisors and end-investors. To date, FNZ administers more than $1.5 trillion in client assets and enables over 20 million people, from all wealth segments, to invest in a simple and transparent way. For more information, please visit www.FNZ.com and follow us on LinkedIn (@FNZ Group).
Genesys orchestrates billions of remarkable customer experiences every year for organizations in more than one hundred countries. Through the power of our cloud, digital, and AI technologies, organisations can realize Experience as a Service®, our vision for empathetic customer experiences at scale. With Genesys, organisations have the power to deliver proactive, predictive, and hyper personalised experiences to deepen their customer connection across every marketing, sales, and service moment on any channel, while also improving employee productivity and engagement. By transforming back-office technology to a modern revenue velocity engine Genesys enables true intimacy at scale to foster customer trust and loyalty. Visit www.genesys.com.
LSEG (London Stock Exchange Group) is a leading global financial markets infrastructure and data provider, playing a vital social and economic role in the world’s financial system. With our open approach, trusted expertise, and global scale, we enable the sustainable growth and stability of our customers and their communities. We are dedicated partners with extensive experience, deep knowledge, and a worldwide presence in data and analytics; indices; capital formation; and trade execution, clearing, and risk management across multiple asset classes. LSEG is headquartered in the United Kingdom, with significant operations in 70 countries across EMEA, North America, Latin America, and Asia Pacific. We employ 23,000 people globally, more than half located in Asia Pacific. LSEG’s ticker symbol is LSEG.