Updated: Sep 16, 2024
Major changes in wealth ownership are on the horizon. The convergence of financial literacy and the growing influence of Millennials and Gen Z is going to reshape the economic landscape dramatically. By 2045, projections suggest that a staggering 80% of global wealth will be controlled by these younger generations.
With the abundance of online resources, Millennials and Gen Z have unparalleled access to information on personal finance. Blogs, articles, videos, and podcasts offer easily digestible content, allowing individuals to understand their finances. Thus, younger generations are becoming more proactive and informed in managing their finances, resulting in a demand for increased easy and real-time accessibility.
To meet this increasing demand wealth managers need to embrace software solutions that digitise their operations. Failing to do so may lead them to lose clients who value digital accessibility and efficiency when it comes to managing their wealth. These clients may seek out wealth managers who embrace innovation.
Here are two key benefits of adapting to digitalization in the world of wealth management;
1. Increased Client Confidence and Engagement:
With increased digitization and information availability, wealth managers will be able to empower their clients to engage with their investments on a more frequent basis, fostering transparency and trust in the wealth management process. Furthermore, the strategic use of digital tools and resources enables wealth managers to efficiently disseminate financial knowledge, thereby expanding their outreach to clients situated across diverse geographic locations.