It's Quantifeed's 8th anniversary! At Quantifeed. we are helping financial institutions provide sustainable, transparent, and affordable wealth management to everyone. As we celebrate our eighth anniversary, we share eight trends that are shaping digital wealth management.
1. The Rise of ESG and Sustainable Investments
- Compared with the global average, half of all investors in APAC countries, excluding Oceania and Japan, make climate-minded investments decisions.
- 90% of large institutions have significantly increased ESG investments in response to COVID-19.
2. Hyper-Personalized Recommendations
- Hyper-personalized recommendations become the norm as open banking enables wealth managers to gain a holistic view of consumers' financial situations.
- 93% of FIs see an opportunity for growth in offering tailored investment plans.
3. Intergenerational Wealth Transfer
- Intergenerational wealth transfer will bring an estimated $50 Trillion into the hands of millennials who seek alternatives to their parents' financial advisers for wealth management decisions.
- 21% of wealth advisers have a digitally-savvy marketing strategy geared towards younger clients who may prefer high-risk investments.
4. Retirement Income Solutions
- Retirement income solutions are in huge demand as ageing populations in many countries are growing. New solutions will help retirees improve their lifestyle without the fear of running out of money during retirement.
- 77% of participants seek help to live comfortably through retirement.
5. Infrastructure Upgrades
- Demand for personalization, more transparency and lower fees will put pressure on product manufacturers and intermediates to modernize their infrastructure. Expect disruption to the mutual fund vehicle as well as settlement, clearing and custody processes.
6. A Wealthcare Ecosystem
- Boundaries between banking, wealth management and insurance services are becoming increasingly blurred. Digital challengers and other service providers will compete for the same consumers and offer holistic services that range from savings, investments and insurance.
7. Alternatives and Digital Assets
- Digital platforms are pushing the boundaries and enabling access to new investment classes such as alternatives and digital assets. Greater access, new investment opportunities, improved controls and suitability.
8. Digital Becomes Mainstream
- Digital becomes mainstream as wealth managers blend human expertise and technology to create propositions that cater to all market segments. By 2030, millennials will hold five times as much wealth as they do today.