10 Trends Shaping the Wealth Management Industry

This year's challenging investment environment has made it hard for wealth management firms to generate superior investment returns for their clients. In addition, competition and uncertain market volatility are also pushing firms to find new ways to grow. These, as well as other factors, are driving the wealth management industry in 2023, according to Capgemini's latest Wealth Management Top Trends report. Clients, of course, are also a driving force. Women and mass affluent investors have unique expectations and preferences, and nearly all clients want digital-first engagement and seamless customer experiences. Add to this the proliferation of cutting-edge technologies, investors' fluctuating asset allocation preferences and demographic shifts. "The overriding question for relationship managers in 2023 may be the following: as more offerings are commoditized, and more clients expect greater convenience, self-directed digital platforms and a la carte fees, how will wealth management firms distinguish themselves, continue to grow and justify rates?" posited Anirban Bose, CEO of Capgemini's financial services strategic business unit. If wealth management firms are to succeed, the report says, they must prioritize growth strategies, adopt innovative business models and mindsets, and be able to respond to dynamic market conditions by altering resources quickly. Capgemini based its 2023 trends report on analysis across these themes:

• Public calls for more stringent regulations to curb corporate greenwashing, and outsourcing of the investment function
• Demand for digital assets and requests for direct indexing investment strategies
• Strategies to expand market share through new investor segments
• Why cybersecurity is essential for business resilience
• How M&A will reshape industry scale, and the influence of family offices

See the gallery for 10 top trends in wealth management in 2023, according to Capgemini.