How can existing wealth managers regain the trust of their clients and differentiate themselves?
Wealth managers that propose to their clients a few generic external funds, offer basic reporting, depend on retrocessions for most of their revenues or provide little follow up to their clients are the most at risk of becoming irrelevant. Improved versions of automated online alternatives are likely to put them out of business in a few years time.
Other existing players are also at risk if they don’t adopt new ways of running their business. We believe the incumbents that will manage to combine the efficiency of new technologies and the human aspects of their business will progressively replace them.
This can happen fast. Nowadays, even the longest relationships can be put to an end as clients are much less forgiving than in the past.