Building a future-ready investment firm

Global megatrends are reshaping the landscape of the global wealth management industry and redefining investor for client needs. To stay ahead of this industry shift, wealth management firms need to revisit their strategies with a greater emphasis on investor for client expectations and competitor analysis.

To analyse how wealth management firms are planning to meet fast-changing investor for client expectations, Deloitte, in collaboration with ThoughtLab and other industry specialists, conducted a global survey of investor for clients and investment providers and researched how the industry is evolving. We look at the impact of megatrends including technology, regulatory & taxes, competition, demographics and economic.

In addition to the global insights, the study provides a deep dive into Swiss-specific findings, revealing how Switzerland as a pivotal offshore wealth management centre can navigate these transformative times. Swiss results underline the importance of adapting to the evolving demands of a diverse and digitally savvy client base, with technology such as AI and blockchain poised to redefine service delivery. More information around the Swiss results can be found further down the page.

• Win with modernisation: The changing face of investors demands personalised solutions and a more inclusive advisor base. Investment firms must harness technology and data to understand these needs, find market niches, and tailor their offerings accordingly.
• Capitalise on client diversity: As investors become more diverse in age, location, gender, wealth level, and lifestyle, firms that leverage technology and data will have a competitive edge. This includes building a diverse advisor base to cater to the varied needs of clients.
  
  
  

• Redefine digital for investors: Embrace the next generation of digital services, leveraging digitally enabled functionality for tasks like account opening, transfers, and communication with advisors.

• Innovate to Drive Performance: Seamlessly blend high tech with high touch by using technology to enhance advisors' capabilities, automate mundane tasks, and deliver a superior client experience, firms can position themselves as digital leaders.

• Empower the future advisor: Technology is revolutionising the role of financial advisors, enabling them to manage a larger client base and offer personalised, comprehensive advice by automating routine tasks.
  
   

• Unlock the wealth curve: Driving investment opportunities across wealth levels requires democratising products and services. Firms should offer high-value options, from alternative investments to private banking, to a wider range of investors.

• Rethink future offerings: Investment firms must reimagine their offerings for the next era of investing. This includes using digital solutions to drive down costs and providing financial education and tools to make investing accessible to all.

• Redefine sustainable investing: Investment firms need innovative sustainable offerings that balance market returns with positive environmental impact and address potential.
  
  
  

• Leverage outsourcing for efficiency: Outsourcing middle-office and operational functions provides leverage and streamlines core activities. this enables providers to serve more clients and operate at a lower cost, freeing up resources for strategic focus.
• Drive value from advisory services: Firms should consider fee-for-service options, fee reductions, and performance-based pricing to drive client value and attract and retain clients.
• Harness the power of data: Personalising wealth management services at scale hinges on data. By analysing multiple data sources, firms can better understand investor preferences and behaviours and adjust their market position.
  
  
  

• Unleash wealth management with AI: AI has transformative potential in wealth management, enhancing client experiences and operational efficiency. Firms should adopt an AI-focused approach for business growth.

• Empower in-house solutions: Explore building in-house solutions using AI and low-code tools for cost savings, customisation, and market differentiation. Low-code no-code tools and Generative AI facilitate this transition.

What is evident to us through this study is that new entrants will serve as catalysts for change and have showcased what is possible. Ultimately, the industry is capital-intensive and those with an established investor for client base and large balance sheet are likely to come out on top.

The true winners will be the end investors for clients and their families, and that should be the primary metric by which we measure the future success.

Read the previous Wealth Management report here.

Swiss results of the survey