Preparing for change: FCA's review of protection product distribution and value
Judith Wright, Technical Director at TCC
We’re proud to have been part of a new study of global wealth managers, exposing how providers will need to adapt to investors’ evolving expectations and priorities in the wake of the COVID-19 crisis.
The Wealth and Asset Management 4.0 project, led by ThoughtLab in collaboration with TCC, Recordsure and several other financial services firms, has today released the full findings of a major study into the effects of the COVID-19 pandemic on the global wealth industry.
The ambitious research initiative, Wealth and asset management 4.0: How digital social, and regulatory shifts will transform the industry, highlights how the pandemic has proven to be a watershed event for the sector.
Many of the findings aren’t surprising to us here at TCC – we know the expectations of investors were already shifting in response to wider societal changes, such as an interest in sustainable investing. But, it’s clear that the crisis has accelerated this shift in priorities. Inevitably, these changes mean wealth and asset management providers will need to rethink their strategies, products, services, and pricing models in order to cater to the needs and expectations of modern investors.
In particular, the study shed light on six major shifts that look set to shape the industry over the next decade:
The future of wealth management: what you need to know
TCC Head of Culture Olivia Fahy commented: “Wealth and Asset Management firms now face pressure from investors across generations to provide a robust ESG offering.
“The desire to see progress on environmental, social and governance issues is not limited to a certain age or wealth of investor, and it’s not surprising that interest in ESG investing and ESG goals spans generations and demographics.”
What does this mean for wealth and asset managers?
To succeed in this marketplace, wealth and asset management firms need to truly client-centric approach—focusing on the person, not the demographic. That will require reimagining their client segmentation and go-to-market strategies, as well as their range of products, services, and pricing models.
For example:
TCC and Recordsure Group CEO Joe Norburn said: “Watching the well-established wealth and asset management industry go through this digital revolution at breathtaking speed is elevating.
As a result, investors now have the advantage of a wide range of communications channels to engage with their advisors, simply using the methods they’re most at ease with.”
These insights are based on a global survey of 2,325 investors across age and wealth levels, as well as a cross-country survey of 500 investment advisory groups, private banks and trust companies, broker-dealers, robo-advisors, family offices, and retail, institutional, and alternative asset management firms.
In addition to TCC Group and Recordsure, the wide-ranging study was sponsored by Deloitte, eToro, FIS, Salesforce, Appway, HCL, LexisNexis Risk Solutions, Publicis Sapient and Refinitiv.
Want to find out more? Read the full eBook:
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