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January 16, 2024

Strategic imperatives to keep in mind for 2024

Marianna Vilardi

Senior Marketing Content Creator

Reading time: 5 min


A new year begins, bringing forth fresh opportunities that are set to shape the Wealth and Asset Management landscape in 2024 and leave a lasting impact on the future. The industry faces challenges such as increased competition, globalisation, aging demographics, the advent of new ones, evolving consumer values, and more. While these dynamics are not ground-breaking news, they undeniably shape market demands, calling for a strategic and thoughtful response.

At the forefront of this evolution is the omnipotent force of Analytics & Big Data, propelling us into a data-driven era where the art of insightful decision-making takes centre stage. Indeed, Big Data emerges as a game-changer – as confirmed by 61% of respondents from our most recent brief LinkedIn Survey -, offering invaluable insights into customer behaviour, enhancing decision-making processes, and optimising operations. Financial institutions are using large datasets to identify trends and patterns to predict and improve outcomes and refine operations. The benefits extend to improved risk management and product development strategies.

The customer-centric impacts of this paradigm shift are equally noteworthy. Big Data facilitates a quantum leap in customer experience, paving the way for personalised offerings finely tailored to individual preferences and needs. The customer journey is therefore no longer a generic path; instead, it becomes a tailored expedition, enriching engagement and fortifying customer relationships.

In tandem, the relentless ascent of sustainable investing reflects a collective shift towards responsible financial practices – 22% of respondents prioritise this trend – mirroring a heightened awareness of the environmental and social impacts of investments, particularly from the younger demographic, a trend poised to grow only bigger. Driven by a conviction that their investments wield the power to shape environmental and societal landscape, they are more willing to make investment decisions predicated on issues that resonate deeply with them. Consequently, the notion of a valuable investment transcends conventional financial metrics and encompasses a holistic evaluation that considers positive impact as a pivotal criterion alongside financial return.

The changing wealth transfer landscape – 11% of respondents believe it will primarily affect our industry—and the emergence of the Millennial and Next Gen generations of investors are adding a revolutionary element to the dynamics. It has been confirmed that, over the course of the next 20 years, younger generations will inherit an estimated $84 trillion from their parents and grandparents. And their preferred financial providers will benefit too. As such, financial advisors’ capacity to seize and hold onto these assets in transit will depend on how ready they are to meet the evolving needs of emerging generations, hyper-personalisation being the priority. But how? Technology comes to the aid. Advisors who harness technology to automate onboarding, portfolio selection, and day-to-day management can free-up time for more meaningful conversations with clients and prospects. Furthermore, dedicating efforts to client education will increasingly become vital in acquiring new business and retaining assets.

Finally, in the backdrop of these trends, regulatory compliance continues to play a pivotal role, constantly evolving to steer the industry towards ethical and secure practices.

As we step into 2024, a strategic focus on these imperatives will not only enable firms to navigate challenges but also position them to seize the opportunities that lie ahead. The industry’s future success hinges on its ability to adapt, innovate, and stay aligned with the evolving needs and values of clients in this transformative era.