Millennials Shaping the Future of Wealth Management Platform

The generation born between 1980- 2000 and have seen the 2008’s global financial crisis are the Millennials.  They are far away from the consequences of World War II as well as its aftermath, an occasion that had shaped their parents' (baby boomers) mindset about money. A recent report on wealth management tells that by the end of 2030, millennials are anticipated to control more than $20T of assets worldwide.

Unlike baby boomers, millennials are expected to change the entire market of wealth management across the globe. And being the most tech-savvy generation they are always looking for answers and information readily or easily available like Google gives all the answers at a click.

While they are the best generation that views wealth management as a routine activity, millennials also want the wealth management platforms to be technologically advanced. 

A research report by The Insight Partners, “The Wealth management platform market in global is expected to grow from US$ 2.20 Bn in 2018 to US$ 7.19 Bn by the year 2027. This represents a CAGR of 14.2% from the year 2019 to 2027. The market’s landscape is highly competitive with a large number of players in it.”
Hence to stay ahead in market wealth management companies are trying on ways to attract their millennial customers by making digital transformations and offering high-speed services. This includes robo advisors, Self-directed or automated financial advisors, mobile platform, gamification as well as software tracking services.

The aforementioned services will not only help the wealth management firms to attract new customers but to retain the existing ones.  This is not it but add-ons like robo-advisory over traditional services involving human advisory will not only offer easy accessibility, affordability and the ability to offer their clients the option to obtain financial advice as well as handling investments regardless of time & location via internet connectivity. But robo-advisory will also allow the wealth management firms to offer their services at reduced assistance fees and increased efficiency & risk analyzing capacity, letting them expand their business across the globe.

For instance, a few developments made by certain players include:

2019: Temenos Headquarters SA declared that ABN AMRO Bank N.V., a Dutch bank has gone live with Temenos’ WealthSuite platform, which would strengthen the bank’s international operations for corporate and private banking.  

2019: In November 2019, StratiFi Technologies, a US-based company integrates SS and C Technologies’s Black Diamond Wealth Platform to increase risk analysis and compliance capabilities for registered investment advisor (RIA) companies.