Wealth management is fast shedding its traditional one-to-one advice model to become the type of digitally driven relationship a new generation of clients enjoys in other areas of the economy. This seismic shift is compounded by a plethora of new regulations and non-financial players entering the market.
Are these passing trends? It appears not. In a recent Accenture Wealth Management Forum organized in Paris we brought together our Wealth Management practitioners from BeNeLux and France with senior leadership from leading wealth management companies. We discussed the current state of the industry and changing client needs and confirmed that the industry must reexamine its value proposition to remain relevant in the future.
Our discussions revealed that regardless of size or clientele, wealth management companies in Europe are facing the same challenges as Accenture sees unfolding globally:
- With the rise of non-traditional client segments, Private Banking client expectations are shifting to digitally driven and personalized experiences for investment management. Digitally savvy Millennials are surpassing the Baby Boomers and bringing with them new demands for a variety of touchpoints, 24/7 access and the ability to self-service. Accenture research identified the investment advice industry can be segmented in highly digital “Nomads” (58%), cost sensitive “Hunters” (8%) and “Quality seekers” (34%).
- Like high street banking, Private Banking is also heading towards a ‘phygital’ journey in which digital enables a new type of relationship and advice. Instead of purely relying on one-on-one meetings, the augmented private banker establishes a regular digital dialogue with frequent and less time consuming touch points, promoting confidence and intimacy in client relationships. Digital technologies are enhancing collaborative relationships in which investors get more transparency and control over their wealth management.
- Tightening regulations around fraud prevention, client protection and other areas are impacting the industry on a growing basis and require market participants to reconstruct key areas of their business to comply.
Keep your finger on the pulse of our latest thinking by regularly visiting our Capital Markets blog. Contact the author of the article, or Mathilde Veillard, our Wealth Management lead for France & BeNeLux to have a meaningful conversation on how wealth management firms can prepare themselves for the course change ahead.
