The Wealth Management industry is witnessing a multitude of changes due to increased regulation and supervision, innovation and the role of digital technology, changing client needs and dynamics, and competition from rising FinTechs and their services for high net worth individuals.



Wealth Management firms have been slow to react to the threat from new entrants based on the belief that well established brands and relationships would offset any competitive advantage. FinTech firms have entered with service offerings in investment management and advisory, innovating standard wealth management functions including client acquisition, advice, and compliance. Furthermore, the need to manage complex asset classes, sophisticated portfolios and the demand for personalized advice and real time analytics has forced firms to consider artificial intelligence based analytics solutions.


Client needs are changing and becoming more diverse, spanning to include a greater emphasis on wealth transfer, retirement planning, and social impact investing. Within the US alone, an estimated $59 trillion in wealth is expected to be transferred to heirs, charities, etc. by 2061. While this is considered to be a growth opportunity, firms will need to develop services and solutions to align with the expectations of younger high net worth Individuals.


High net worth individual wealth is at an all-time record but the growth has coincided with decreasing profitability for wealth management firms. One of the key challenges is for firms is to leverage digital technology to transform their business and increase profitability. With that said, digitization raises another set of questions and concerns – with significant amounts of assets and sensitive data involved and accessed by third party and proprietary services, the wealth management industry is one of the prime targets of data breaches and cyber threats.

Gartland & Mellina Group — A Management Consulting Company