6 Wealth Management Trends for 2020

Coming off of our time at the Schwab IMPACT 2019 Conference and reflecting on the insights and advancement of the industry that we’ve seen over the last year, we’re expecting 2020 to be the year of the consumer. With this industry shift in consumer over business, each of our predicted wealth management trends shed light on how we as an industry can better serve our clients socially, financially, and technologically.

Be on the lookout for these 6 trends heading into 2020: 

  1. Personalization becomes paramount: Your clients are more than just money; they’re people, and they want to be treated like it. Now more than ever, clients are demanding that their advisors provide them with a personalized experience that goes deeper than engaging in a few phone calls or in-person meetings. Because their advisors are handling such an important component to their livelihood (their wealth) they want to feel a connection with their advisor that goes deeper than surface level. 


  1. Sustainable investing options: Millennials, more than any other generation, are becoming increasingly socially and environmentally responsible. With this shift in priorities, begin thinking about how you can best serve your clients both financially and personally by offering investment opportunities with a sustainable impact.


  1. Digital marketing will be a top strategic move for firms: As advisors and consumers, we know just how big of a role social media plays in the marketing, networking, and purchasing sphere. In order to reach a broader and more generational client base, wealth management firms will be redefining their digital strategies to foster a more consumer-centric approach to prospecting.


  1. Data as a differentiator: It’s likely that you’ve seen or heard this phrase in virtually every market, but for the wealth management industry, data will take precedence as the driving force in minimizing client churn, fraud, and default risk.


  1. Continued fee compression: Fee compression has been a trend in the industry for years, but within the last year or so, it has become even more worrisome for many advisors. In order to minimize your fee compressions, define your value proposition, and bring it to the table.


  1. AI technology utilization: Recently, the perception of AI has changed from the “wrecking ball of the industry”, to the saving grace of time management. In the upcoming year, we’ll begin to see the utilization of AI as an industry (and consumer) standard, pushing advisors who refuse to innovate and adopt technologies out of the market. 


Have any other insights on wealth management trends in 2020 you want to share? We’d love to hear them! Hop on over to our LinkedIn or Facebook page and let us know your thoughts.


person working on wealth management trends