The Big Shift: the forces reshaping advice and wealth management
Updated: 2 days ago
Advice and wealth management is going through a period of significant change, and with it comes real opportunity: to help more people protect what matters to them, buy their first home and save for a secure future.
A wave of transformation is underway across advice and wealth management firms, and this time regulation is not the main driver. The change is coming from market, societal and technological forces.
Five shifts driving change in advice and wealth management
Wealth is passing to the next generation | The generational transfer of wealth is one of the most significant trends facing the industry. Building trust and relationships with the next generation calls for a different mindset, strategy and set of tools. |
Client expectations are evolving | Digital interaction is now the norm, particularly for younger clients who are digital-first in most areas of their lives. Advice and client engagement need to be deliverable digitally, with clients choosing how they engage and expecting a personalised experience that is available when they need it. |
AI & technology are closing the advice gap | AI and wider technological innovation allow firms to scale their operations without a matching rise in cost. These tools can automate routine tasks, surface insight and improve the client experience, and AI agents delivering advice is a realistic prospect. |
Business models need to adapt for the digital age | Staying relevant means firms rethinking how their business works and how they deliver value. That includes embracing digital transformation and being open to new ways of working, even where it means taking apart parts of the business and rebuilding them. |
Technological change requires human change | The impact of technology on the workforce is considerable. People at every level, from the C-suite to frontline teams, will need to retrain and adapt to new ways of working. |
How advice and wealth management firms can respond
Plan for the wealth transfer
Prepare a strategy to retain and capture the assets being inherited by the next generation.
Invest in customer research to understand what clients value most.
Use external market research to build a picture of what younger clients are looking for.
Deliver personalised digital experiences
Clients are spending more of their time in digital spaces, and firms need a presence there too, with a digital space designed for clients.
Invest in technology that supports personalised, joined-up interactions.
Reassess the nature of your workforce
People remain essential, but their work will become more specialised and focused on the areas where they add most value.
Digital workers are becoming part of the workforce, and they will need to be managed.
Redefine team roles and responsibilities to reflect new ways of working.
Begin reshaping the business
Approach change proactively, testing new business models and taking considered risks.
Build a culture of innovation and agility that can keep pace with the industry.
Decide how to build, buy or borrow future skills
Invest in reskilling and upskilling existing teams.
Decide which skills to develop internally, where to hire and where to partner with external experts.
The role of leaders in advice and wealth management
The market will change whether or not a firm chooses to lead that change. Leaders have four areas of responsibility to consider:
Vision and strategy. Setting the vision, mission and strategic goals of the firm, including growth opportunities, market trends and competitive advantage. What is your understanding of the shifts underway, and how does your organisation plan to respond?
Client alignment. Making sure services reflect client needs and expectations. How well do you understand the clients you serve today and the clients you want to attract?
Investment. Overseeing how financial resources are allocated. Is capital directed towards the transformation that will create long-term value for shareholders?
Innovation. Leading the transformation work that keeps the firm competitive. How is your organisation responding to the technology already available?
How we can help
Strategic alignment
Business strategy works best when it is aligned with data, technology and people strategy. A stress test of your plans identifies the gaps and the critical decisions still to be made.
Investment planning
A detailed plan sets out what expenditure is needed, when, and where cost savings can be made, so capital is used to best effect.
Leadership and team support
Transformation depends on strong, visible leadership. Coaching and upskilling give teams a clear understanding of what is expected of them and the support to deliver it.
Subject matter expertise
Access to specialists in market dynamics, data, technology, AI, operating models and skills of the future.
Join the conversation on The Big Shift
Poppy Achilles hosts and facilitates The Big Shift, a free online webinar series exploring the forces reshaping the advice and wealth management industry. The series is open to all advice and wealth management firms exploring or investing in transformation, and each session gives attendees space to share what they are seeing and work through the challenges together.
The next session takes place on 20 May and focuses on Skills of the Future.
To learn more, contact poppy.achilles@alirity.com or register here.
