What wealth management trends will we see in 2017?

Effective wealth management is a way for you to grow your current pool of assets and ensure you leave enough money and resources to your family and future generations should the worst happen.

A recent survey from Roubini ThoughtLab revealed household wealth in Australia would climb 83 per cent between now and 2021. This was higher than in any other developed market, with Israel second on 62 per cent.

With average family wealth increasing across the country, a growing number of people are likely to seek advice on how best to manage their assets over the coming years. But what trends are set to shape the market in the immediate future? Let's take a look at a few predictions for 2017.

1. Generational transfer of wealth

Baby boomers currently hold the majority of the world's wealth, but this is already beginning to change as more of this generation hand over their assets to heirs.

Deloitte figures predict US$58.1 trillion (AU$80.5 trillion) of global wealth will transition from one adult population to the next between 2007 and 2061. This will provide both opportunities and challenges for advisers, as their clients will typically have differing investment profiles to previous generations.

2. Wealth management tech revolution

Financial technology – or FinTech – is a major disrupter in the wealth management space, as businesses turn to innovative platforms in order to automate processes and streamline workloads.

Millennials and other younger investors are also increasingly tech-savvy, expecting advisers to provide the latest technology to make day-to-day interactions quicker and easier.

3. New service delivery models

The wealth management industry will also begin adding new service delivery models to cater to the changing tastes of generational investors. Advisers that offer the most flexible options for clients can expect to gain a competitive edge over the competition.

A recent Capgemini report claimed there will be more fully automated advisory models that use technology to offer investment guidance, as well as highly personalised approaches that rely on close adviser-client relationships. An array of hybrid models that lie between these two extremes will also exist.

Looking to the future

Maintaining and growing wealth is an important part of preparing for the future, and understanding the trends that could affect your options will put you in a better place to make investment decisions.

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