Disruption in the Wealth Management Business

Demographic, Social, and Technology Shifts Change How We Engage

Following the financial crisis in 2008 and in the years that followed, the overall industry of buying, selling, and managing securities has undergone a profound change. The change has come from enhanced and ongoing regulatory scrutiny, a low interest rate environment, and shrinking liquidity in the marketplace. Large global institutions as well as local financial institutions have fought ardently to deliver greater cost savings, enhance the customer experience, improve efficiencies, and explore new businesses to enhance the bottom line.

One area that is most ripe for change and has seen the greatest demand for a new approach is the field of Wealth Management. 1% of the wealthiest Americans hold 30% of the total wealth of the US population. (Money: How Stuff Works) This audience has not only grown in size but in composition, as well. The U.S. population has become more diverse, and there are many more affluent millennials, women, and other minorities who now fall into the mass affluent category. This rising affluent population is changing the landscape of traditional wealth advisory services. Advisory relationships are allowing for greater diversity in approach, format, and ultimately in the delivery of the service itself.

This article explores the changing wealth management landscape, including demographic, social, and technology shifts, and how these shifts impact how we approach wealth management.

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