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DEC 07, 2022

Democratising Wealth: A unique business opportunity to impact Wealth Management Today and Shape the Future

Ramazan Celiköz

Market & Business Development

Reading time: 2 min


Objectway features The Wealth Mosaic Swiss WealthTech Landscape Report 2022 to dive deep into the democratisation of wealth, because one of the biggest changes within wealth management comes when profitably serving affluent and mass affluent clients becomes possible.

Why is this?

Decreasing margins in traditional private banking due to increased competition and changing client behaviour are forcing larger institutions to develop additional sources of income. Converting savers into investors by providing access to investment products promises more commission fees for banks.
The competitive landscape is changing just as well. Banks are faced with an increasing number of new challengers that are gaining momentum with customer-centric propositions targeting affluent and mass affluent investors.

The low-interest rate environment over many years has encouraged even the most loyal savings customers to look to investment-led products, offering higher returns to keep pace with rising inflation and beating conservative bank funds’ performance. Facing insufficient pensions has also led to a rethink among retail customers and forced them to make long-term investment plans instead of short-term savings.

Customers are becoming more demanding, requiring new investment products, diversity, and flexibility to tailor portfolios. In particular, there is a high demand to be aligned with ESG and ‘impact investing’ criteria.

These changes make it clear that the democratisation of wealth management is a result of evident customer needs. Indeed, more and more customers have the need for: access to investment products with higher returns, individualised portfolios, advice, transparency of portfolio constitution and self-service tools to customise investments based on their own priorities and risk appetite.

How can banks respond to these changes and profit from them?

The democratisation of wealth management is about balancing the digitisation of client journeys, granting access to sophisticated individualised investments, and reducing operational costs via industrialisation. Hence, this transition could be managed along the following dimensions:


  • Implement customer-centric technology and user journey
  • Provide investment advice considering customer specialities
  • Learn from client data and adopt processes
  • Enhance automatisation and outsourcing
The opportunities and chances of offering wealth management services to mass affluent segments for banks are multifaceted if the implementation and operations costs are well-managed.


  • Convert saving customers to investment customers and create new revenues.
  • Unlock new ‘risk-free’ customer segment with huge growth potential.
  • Retain existing customers and increase their engagement.
  • Increase market share.
  • Improve customer satisfaction.

In this context, the companies that will survive will be those who are testo in grassettofast and client-oriented, use modern and reliable technology and have their cost-income ratio under control.

Digitising means enlarging the investment community and making services qualitatively accessible to everyone, regardless of invested assets. When we speak of digital revolution, we consider a fundamental, momentous shift in the sector, which is the democratisation of the service.

Read the full report in collaboration with The Wealth Mosaic.