Wealth and Asset Management 4.0 study – what have we learned?

Recordsure and TCC joined ThoughtLab, FinTech B2B Marketing, and wealth management experts from across the globe for an in-depth discussion on how wealth and asset management firms will need to rethink their products, services, and business models to meet the shifting needs of investors.

Industry experts examined critical findings from a worldwide study of 2,325 investors and 500 wealth management firms which was released on 4th November 2021.

The global study, Wealth and asset management 4.0, conducted far-reaching research into how digital social and regulatory shifts are transforming the industry, and how the pandemic has changed the wealth sector.

The pandemic has been marked as the watershed event for the wealth industry, accelerating shifts that are already in motion across generations and wealth levels. The study explores how a broad range of wealth and asset management providers are adapting to the profound investor changes hastened by the pandemic.

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Technology empowers personalised customer journeys

The dramatic shifts in investors’ behaviours are not surprising, with noted changing attitudes over the past three years. Covid, climate change and advancements in digital have been key in driving fundamental changes in behaviours. Transparency around fees and switching providers shows that investors were unhappy with the services they had before.

The industry is seeing a real need to change how the investor community serves customers. Investors want to be offered products and services they need and in a way that’s most convenient to them.

Customisation and personalisation of wealth management products and services are very important to investors. Organisations are forced to pay attention and realise the customer journey should not be the same for everybody.

Joanne Smith, Founder and Executive Chair, Recordsure
Joanne Smith -Recordsure Founder and Executive Chair

Advances in digital technologies provide firms with tools to support customer-driven strategies and better customer experience. Digital strategies offer better targeting and optionality, moving away from the one fits all approach to unique personalised journeys.

Joanne Smith, the Founder and Executive Chair at Recordsure and TCC, emphasises the importance of digitalisation for wealth and asset management firms.

Putting digital products and technology at the heart of everything organisations do is the key. Digitalisation allows firms to serve the customer in a more tech-savvy way and enhance customer journeys and experiences. If organisations can grasp that, they will dominate in this market.

Joanne Smith, Founder and Executive Chair, Recordsure

Ethics and social responsibility for competitive advantage

Investors are increasingly expecting wealth and asset management firms to be more ethical and responsible. Investors rate business practices, leadership vision and integrity in their top criteria and want their providers to have healthy, purposeful cultures.

The desire to see progress on environmental, social, and governance issues is not surprising; interest in ESG investing and ESG goals spans generations and demographics. Future-oriented firms have already recognised the advantages of operating as socially responsible organisations. This changing environment brings challenges but also new opportunities, providing firms with the chance to positively impact the world, drive change, and make a real difference for the future.

Fundamental shifts for the industry

  • The growing digital and social imperative across investor segments, and a greater call for product and service democratisation, higher standards, and more transparent pricing.
  • The convergence of needs and behaviours among investors, including those that are affluent or very rich, the young and the old, and women and men.
  • The move away from consolidating investments and the increased willingness of investors to switch providers to get what they want or follow their advisors.
  • The criteria that matters most now to investors when evaluating or selecting wealth management providers.
  • The steps that wealth management firms plan to take to differentiate themselves and find new growth opportunities in a fiercely competitive marketplace.
  • The ROI on digital innovation has helped firms boost productivity by 14%, AUM by 8.1%, revenue by 7.7%, market share by 7.3%, and shareholder value by 5.8%.

Moderated by:
April Rudin, FinTech B2B Marketing Advisory Board Member & CEO, The Rudin Group

Panellists included:
Joanne Smith, Founder and Executive Chair, TCC Group & Recordsure
Charles Smith, Global Head of Digital Solutions, Refinitiv
Vinod Raman, VP, Head of Investment & Wealth, Stash
Lou Celi, CEO of ThoughtLab, and Director of Wealth and Asset Management 4.0

Mark Hover Recordsure

Recordsure appoints Mark Hover to drive growth and innovation

Mark Hover joins Recordsure team as Chief Commercial Officer

We’re delighted to announce that Mark Hover has joined Recordsure and TCC as Chief Commercial Officer. 

Mark’s appointment comes at an exciting time for us. With a unique combination of deep regulatory expertise and cutting-edge AI-driven technologies, Recordsure and TCC are on a mission to deliver the most innovative, market-leading products and services that truly meet the needs of our clients, their customers and the regulators. 

Together, we are helping our financial services clients solve their biggest compliance and conduct challenges in the most efficient way possible.

We’re pleased to welcome Mark at this exciting time of close collaboration between Recordsure and TCC. In the past two years alone, we’ve won multiple awards across the Group, launched revolutionary RegTech products and even expanded into new corners of the globe – and our ambitions don’t stop there.

Mark’s impressive track record of finding transformative solutions to complex market challenges will be invaluable for the next stage of our growth.

Joe Norburn, Group CEO, Recordsure and TCC

With years of experience in financial services and remarkable experience developing several FinTech businesses, Mark will be responsible for driving our growth and innovation. He joins us following a successful time at OpenWrks, a pioneer of UK open banking, where he spearheaded the partnership strategy.

I’m delighted to be joining the Recordsure and TCC team. With our a shared commitment to innovation, I’m looking forward to building on the Group’s achievements and continuing to support valued clients.

Mark Hover, Chief Commercial Officer, Recordsure and TCC
Mark Hover_Recordsure_Headshot

Learn more about Mark Hover and the experience Mark brings to Recordsure. 

Global Wealth Management Study-Recordsure

Global study, supported by Recordsure and TCC, highlights post-pandemic behavioural shifts facing wealth managers

We’re proud to have been part of a wide-ranging research project outlining how wealth and asset management firms will have to adjust to changes in investors’ expectations and priorities following the COVID-19 pandemic.

The Wealth and Asset Management 4.0 group, coordinated by ThoughtLab with support from Recordsure, TCC and a coalition of major financial services firms, has today released the full findings of an extensive research project into the ways the COVID-19 pandemic has affected the financial industry.

The study, Wealth and asset management 4.0: How digital social, and regulatory shifts will transform the industry,  provides a fascinating look at how the pandemic became a watershed moment for the wealth sector.

Here at Recordsure, we were aware that investors’ attitudes and behaviours had already begun evolving to become more socially conscious in response to societal issues such as sustainability and D&I – but our findings have laid bare exactly how much the pandemic has hastened this change in priorities.

Inevitably, these changes mean wealth and asset management providers will need to rethink their strategies, products, services, and pricing models in order to cater to the needs and expectations of modern investors.

In particular, the research outlines a number of crucial shifts that will dictate the course of the industry over the next few years:

The future of wealth management: what you need to know

Because of the pandemic, 40% of investors say digital access has become a greater priority, and nine out of 10 say that mobile will be their preferred channel in the future. In fact, digital is no longer just the domain of millennial customers; it is now preferred by older and richer investors.

Over the next two years, 34% of investors will seek ESG investing advice. Investing for the social good is no longer limited to just millennials: 32% of boomers plan to invest in ESG funds vs. 22% of millennials and 63% of billionaires.   

In two years, 67% of investors will want to invest in alternatives, 49% in IPOs, 47% in tax-exempts, and 45% in commodities. Similarly, 58% of investors will want personal financial planning and 53%, day-to-day financial management services. The difference between wealth levels is fading. For example, 69% of mass affluent want to invest in alternatives vs. 65% of VHNW investors. 

About half of investors say that acting in their best interests is the most effective way for advisors to build relationships with them. When selecting firms, investors use ESG criteria: 48% consider ethical business practices, 41% vision and integrity, 39% approach to inclusion, and 34% social purpose.

Only 37% of investors are happy with provider’s fees, and 36% with fee structures. Even fewer, 35%, understand how their advisors are compensated. Regulators and fintech competition are adding to the pricing pressure.

Over the last year, one-third of investors moved 20% or more of their funds to providers that offered what they want. Over the next two years, 44% plan to do so. And 62% said they are likely or very likely to leave firms to follow their advisors.

Wealth and Asset Management firms now face pressure from investors across generations to provide a robust ESG offering. The desire to see progress on environmental, social and governance issues is not limited to a certain age or wealth of investor, and it’s not surprising that interest in ESG investing and ESG goals spans generations and demographics.

Olivia Fahy, Head of Culture, TCC

What does this mean for wealth and asset managers?

To succeed in this marketplace, wealth and asset management firms need to truly client-centric approach – focusing on the person, not the demographic. That will require reimagining their client segmentation and go-to-market strategies, as well as their range of products, services, and pricing models.

For example:

Offering a greater variety of products

Almost two-thirds of providers plan to offer alternatives over the next two years—a top requirement for investors—and four out of 10 will offer private placements or venture capital opportunities packaged for a wider range of clients. On the services side, more than half of firms plan to offer goals-based planning and, as a result, they will also add more ancillary financial-related services.

Integrating digitalisation into business strategies

Firms will need to shift their digital transformation programs into high gear while finding the ideal calibration between a high-tech and high-touch approach. The research shows that firms that embrace digital transformation on average increase their productivity by 13.8%, AUM by 8.1%, and revenue by 7.7%.

Watching the well-established wealth and asset management industry go through this digital revolution at breathtaking speed is elevating. As a result, investors now have the advantage of a wide range of communications channels to engage with their advisors, simply using the methods they're most at ease with.

Joe Norburn, Group CEO, Recordsure and TCC

These insights are based on a global survey of 2,325 investors across age and wealth levels, as well as a cross-country survey of 500 investment advisory groups, private banks and trust companies, broker-dealers, robo-advisors, family offices, and retail, institutional, and alternative asset management firms.

In addition to Recordsure and TCC Group, the wide-ranging study was sponsored by Deloitte, eToro, FIS, Salesforce, Appway, HCL, LexisNexis Risk Solutions, Publicis Sapient and Refinitiv.