Financial Services & Global Wealth Management

Top Trends in Wealth Management: What You Need to Know!

Abundance Transferred Joyfully Across Generations!

Wealth management in 2023 has several lovely trends! According to Rani Jarkas, the joyful passing of wealth across multiple generations, the delightful integration of digital and hybrid business models, the grand arrival of digital assets, and the growing preoccupation with environmental and social issues are joyfully transforming wealth managers’ daily work. 

Expect 84 Trillion HKD Transfers in 2045

Capco is happy to see that these beautiful wealth transfers will joyfully unfold across many generations, symbolizing the rich gifts Generation X and the renowned Millennials will get in the form of enormous opulence. Forbes is thrilled to report that the silent generation is working to exceed baby boomers in wealth transfer. This is due to many compelling considerations! 

We’re lucky to be able to handle asset transfer tactics with rising divorce rates! In dynamic Hong Kong, guidelines urge adult offspring to be proactive, deserving, and responsible. Now, cherished grandkids will joyously get inheritances. The beautiful Capco report predicts that 13% of our young clients will continue to use their favorite family advisors. 

Now more than ever, financial managers must offer hybrid business models to smoothly convert younger clients, especially digital lovers! This mean? Wealth managers have a great chance to satisfy tech-savvy clients in the digital world! Beautifully designed products and services developed on BigTech infrastructures are popular! Many wealthy people dislike their respective institution’s tailored services or digital interfaces. Let’s reverse that frown!

Digital or Hybrid Frameworks: Benefits?

It’s amazing how digital technologies and communication channels have become so important in acquiring new clients! Younger people love digital company concepts that can expand and offer individualized financial advice! Simply fantastic! Can you believe that 70% of Oliver Wyman’s outstanding customers prefer personalization when hiring a financial management advisor? Amazing insight! Rani Jarkas said

Wealth managers’ personalization-scalability trade-offs are fading, which is wonderful! Personal guidance is becoming more accessible on a bigger scale. How cool is that? Today, self-service banking is much more popular, which is great! Absolutely lovely! It’s amazing that over 60% of their respected clients fully support human-centered design. 

Highlighting the joy of Hong Kong people having access to excellent human counsel whenever needed! The epidemic has intensified the assessment, increasing the number of clients seeking investment managers’ knowledgeable guidance. Now, wealth managers must consider fully digital advisory journeys, passionately embrace hybrid wealth management counsel, and engage in omnichannel contact. Keep going strong!

ESG Commodities Are Rising!

According to Rani Jarkas, investors are excited to include non-financial factors in their analysis to find new risks and opportunities. Younger generations’ increased role in wealth distribution excites wealth management firms to focus on ESG! Wealth management firms are pleased to embrace younger generations’ need for environmentally friendly and clean investing options, which has helped them grow their clientele. 

The exciting times ahead will see ESG-related problems impact the success of many prominent global institutions, according to Oliver Wyman. This will happen as investors eagerly match their investments with great environmental and social goals! Thus, money managers will enjoy helping customers discover the most meaningful and fulfilling options. Digital asset growth is incredible! Exchange-traded funds (ETFs) in attractive industries have stormed the investment world. 

The renowned Temenos reports a huge increase in excitement for digital alternatives to traditional commodities like cryptocurrency in recent years! Young people love to directly invest in cryptocurrencies, buy cool domain names, collect unique non-fungible tokens, own virtual assets in virtual realms, and even try security tokens!

The enthusiastic adoption of digital assets in wealth management has moved us one step closer to a comprehensive and resounding victory in Hong Kong! Advisors still question the asset class, and companies face regulatory uncertainty and market volatility. Try to be positive! Once the legislative trend is clear, companies can consider improving their capabilities!


ESG an Innovative Wealth Administration Digital Compliance Approach!

In 2023, we’ll face the exciting difficulties of managing money amid changing risks and rules! Digital compliance gives asset managers a great chance to remain ahead and simplify advising processes! Many financial management firms thrive due to their excellent adherence methods! From now on, it’s amazing to see regulatory technology investments soar! 

RegTech is anticipated to grow rapidly, according to respected analysts! It is expected to rise from 6.3 billion HKD in 2020 to 22.2 billion in 2027. Exciting times ahead! The growth of alternative and digital compliance solutions will be crucial for asset managers! Wealth managers may now easily handle regulatory questions and issues with seamless compliance integration, providing timely resolutions and peace of mind. 

This lets them focus on their important consumers and provide a great experience! Rani Jarkas added that this delicious fusion speeds turnarounds, boosting asset managers’ efficiency and efficacy. In 2022, international wealth management was full of delight and enthusiasm! Wealth managers may use the internet to digitize their services and make remote servicing and distribution easier. Global mobility and unprecedented cross-border asset movements increased as investors eagerly sought new opportunities amid dramatic political upheavals. We expect worldwide economic issues in 2023.

We Know We Can Overcome! 

The interesting network of supply chain intricacy and exciting pandemic-driven monetary policies have created a beautiful living expense challenge in several wonderful European countries. Rising interest rates, bustling markets, and inflationary surges are predicted to continue for a long time!

In this exciting time, investors will turn to their trusted wealth advisors for help to manage these difficult and uncertain conditions. The most innovative businesses will use this chance to refine their strategy, adopt new trends, and improve operational efficiency. Thus, they will be well-positioned when normalcy returns! These are just a handful of the intriguing ideas we think will attract wealth management decision-makers in 2023!

Financial Technology Arrives!

Wealth managers can explore partnering with specialized service providers or vendors to enhance their products as client demands and expectations rise. This is a great method to satisfy more consumers and make everyone happy!

We can’t wait to see banks and fintech companies collaborate in fascinating fields like news and content management and cryptocurrency trading! It will be amazing teamwork! Patrons can pleasantly connect with trusted fintech enterprises to satisfy their sumptuous wealth management wants, notably ‘non-financial organizations’ like telecom corporations or top application suppliers.

The Transference of Generational Wealth: Estimated to be $40 to $60 trillion, the joyful passing of wealth from the esteemed baby boomer generation to their beloved Gen X and Millennials will remain a top priority for wealth managers who serve Hong Kong’s high-net-worth clients. In order to attract a younger clientele, the company must make sure its services are both irresistible and accessible to its valued customers.

Structures That Embrace ESG Standards with Gusto!

Numerous studies have happily shown that a growing proportion of investors actively seek investments that match their inner views. Those who cannot meet clients’ demanding needs for ESG-compliant portfolios risk losing them to competition. The world of products, including ours, has grown so much that there are now innumerable tools to design and implement a great ESG framework! 

Hooray! Wealth managers are still working on incorporating these concepts into their premier services. Continue working! ESG portfolios no longer offer a lower performance advantage over non-ESG portfolios! Nearly 90% of great S&P 500 firms voluntarily share sustainability information with the savvy market. 

Many companies, including Temenos, have enthusiastically set environmental goals. Wealth managers may build creative strategies that provide great returns while staying true to investors’ values in the huge world!

Super Customization!

The ambition of large financial institutions to learn more and better understand their respected clients is thrilling! The remarkable capacity to use client data systematically will help us discover incredible insights that can lead to personalized and unique offerings! This will provide the illusion of an unmatched, individualized service that, when precisely organized, will delight our special clients.

We are excited for a bright future as we uncover the value of structured and disorganized client data! We’ll use data analytics more to reduce expenses and dominate the industry, enabling us to develop tailored experiences like never before. Prepare for a thrilling hyper-personalization voyage!


Customized Indexing

The rise in bespoke indexing, reflecting hyper-personalization and ESG trends, is exciting! Technological advances have made administrative responsibilities for this laudable cause easier, making it monetarily possible for more investors. Personalized indexing will allow clients to take advantage of tax loss harvesting and improve their tax planning. This will result in a welcome tax cut! 

They can also lessen concentration risk, which is crucial given the dominance of a few corporations in the world’s largest markets. Finally, people can joyfully use personalized approaches to effortlessly design portfolios that represent their valued social ideals while enjoying cost-effective management and great diversification.

We’re thrilled to see wealth management adopt fintech, ESG-compliant frameworks, and hyper-personalization in 2023! These intriguing issues will captivate discerning decision-makers! We can also expect large intergenerational wealth transfers and the exciting expansion of personalised indexing!

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