A Look At Wealth Management Trends In 2012
The effects of the global financial crisis of 2008 continue to have an echo in today’s economy and major changes are expected to continue taking place in 2012. From altering стратегии управления проектами
business models and increasing investors’ requirements to profitability pressures and market reshuffles, numerous wealth management companies are faced with an extreme challenge: they need to rethink their business practices quickly and prudently at the same time in order to survive in this harsh market environment. Let’s summarize the radical changes that are to be expected by the end of 2012.
Profitability Requires Even Higher Investments
It is increasingly noticeable that the market is becoming a more crowded place for all industries, particularly since numerous companies that enter the wealth management field report a lower activity and because the asset levels have decreased, contrary to what was expected. According to various economic and financial analysts, the only solution to breaking out of the cycle comprises of investing in regulatory changes. However, the problem with the aforementioned modifications consists of the fact that only the big companies have the necessary capital to invest in training, technology and expert staff. To put it simply, small and medium firms will have a hard time surviving under these conditions.
the Business Models Change in Order to Adjust to the Clients’ Needs
First of all, it is important to note that the current investment climate is suboptimal and many investors report that they are forced to change their current business practices. Essentially, in 2012 the vast majority of investors prefer to make “safer” bets: instead of the classic buy-and-hold strategies and equity shares, financiers favor the use of exchange trade funds, purchasing gold and are becoming more interested in online trading capabilities. As a consequence, the companies that were sustained by the standard investor behavior will also have to adapt in order to maintain their profitability.
A further noteworthy indicator of the modification of the business models entails the upcoming fiduciary standard. As analysts predict, the norm will determine large companies to introduce a business model that is focuses more on fee-based services and financial planning rather than the sales and commission based approaches. On a side note, the aforementioned switch will have a direct impact on the importance of mobile applications that allow investors to keep in touch with their resources anywhere and anytime. In fact, several online brokerage giants have already taken the necessary steps to allow their clients to access various accounts via mobile devices.