Between the political environment, technological advances, regulatory changes and the COVID-19 pandemic, there are a number of factors impacting the wealth management industry. Global research firm Aite Group in Boston recently released its Top 10 Trends in Wealth Management Top 10 Trends in Wealth Management, 2021: The Future Is Now report, highlighting its top predictions for the industry. Among the biggest developments set to influence advisors’ businesses this year include consolidation among wealth management firms, the rise of ESG investing, a renewed focus on prospecting and changes to advisor compensation models.
“Time is of the essence for wealth management firms to embrace the new normal and invest in staff and infrastructure in order to keep up with client behavior and faster-moving competitors,” Aite analysts write in the report. “Firms that miss this queue risk losing market share and possibly becoming acquisition targets.”
Here are the top 10 trends to watch for.