Expert: Peter Dingomal, Business Development Director, FA Solutions Facilitator: Caroline Burkart, Alpha FMC
Headlines:
- The meeting emphasised the need for wealth managers to adapt to changing client expectations and priorities in order to maintain and grow their client base
- Key topics related to the wealth management industry include the rise of new and complex asset classes, the increasing importance of ethical and sustainable investing, and the need for digital accessibility and client engagement
- The challenges and opportunities presented by these trends highlight the importance of having robust data management systems and the ability to consolidate data from various sources
Discussion:
The discussion emphasised the role of regulation, education, and industry collaboration in addressing the headlines issues.
New markets and complex asset classes
The discussion focused on the shift towards more complex asset classes, such as private equity, private debt, and cryptocurrencies, as investors seek to diversify their portfolios and maximize returns.
Delegates highlighted the importance of having core technology solutions that can natively support these asset types, including the ability to record relevant transaction types, manage settlement processes, integrate with specialist data providers, and calculate native analytics. This was seen as crucial for providing a holistic view of portfolios and enabling efficient decision-making processes for both managers and investors.
Ethical and sustainable investing
The rise of ethical and sustainable investing was discussed, driven by increasing investor priorities around environmental, social, and governance (ESG) factors, as well as regulatory changes. The need for portfolio management solutions to have an open architecture that can integrate with ESG data providers, enabling the consideration of ethical impacts during the decision-making process, was emphasised, and the ability to generate regulatory reports and client reports incorporating ESG data was seen as essential.
Digital accessibility and client engagement
The discussion highlighted the growing demand from clients for digital access to their portfolios and the ability to interact with their wealth managers through various channels, such as mobile apps and client portals. The importance of providing a unique and engaging digital experience tailored to individual client preferences, while also ensuring data security and transparency, was recognised. The potential for leveraging technology to deliver true value and foster client loyalty was also explored.
Industry collaboration and regulation
The participants discussed the potential benefits of industry collaboration in addressing common challenges, such as standardising reporting formats and promoting financial education. The role of regulation in areas like data privacy, artificial intelligence (AI), and cryptocurrency was also explored, with some expressing concerns about the potential for over-regulation and unintended consequences. The importance of maintaining a balance between innovation and responsible practices was also emphasised.
Key takeaways:
- Explore the implementation of core technology solutions that can natively support complex asset classes, including the ability to record relevant transaction types, manage settlement processes, integrate with specialist data providers, and calculate native analytics
- Evaluate portfolio management solutions with an open architecture that can integrate with ESG data providers, enabling the consideration of ethical impacts during the decision-making process and the generation of regulatory and client reports incorporating ESG data
- Develop a unique and engaging digital experience for clients, including mobile apps and client portals, tailored to individual preferences while ensuring data security and transparency
- Collaborate with industry peers and regulatory bodies to address common challenges, such as standardising reporting formats, promoting financial education, and establishing responsible practices around emerging technologies like AI and cryptocurrency
- Continuously assess and adapt to changing client expectations and priorities, particularly those of younger generations, to maintain and grow the client base
