The new report from the analysis firm, 2019: Trends to watch in global wealth managementfound that while just over 40 percent of wealth managers were concerned about possible data breaches, almost 60 percent agreed that their clients were increasingly worried about cybercrime.
The report also identifies three other upcoming trends over the next year, predicting that more countries not participating in the Common Reporting Standard (CRS), such as the United States, will develop as offshore centers and that markets volatile will force managers to rethink diversification and new customer demographics. will become more widespread.
“Only 43 percent of wealth managers are concerned about the effect of data breaches on their brand, which is a relatively lackadaisical approach by wealth managers to cybersecurity that needs to change,” said Sergel Woldemichael, wealth management analyst at GlobalData.
The company’s 2018 Global Wealth Manager Survey reveals that 62.1% of wealth managers believe digital channels will be more important for the next generations. The report also states that the industry will need to adapt to changing customer demands.
“The wealth management industry, typically paper-based and male-dominated, is beginning to experience client demand from technology and demographic shifts,” Mr. Woldemichael said.
“Technology has helped bridge the gap between the wealthy and the general public when it comes to wealth management services.”
The report also found that wealthy women were on average younger than men.
In the Middle East and Africa, 71.7 percent of wealthy women are 50 years old or younger, while 70 percent of wealthy men are 51 years old and older.
“In a sector historically dominated by men, we are starting to see more women entering this profession. Not to mention that women’s wealth is increasing,” Mr. Woldemichael said.
“Wealth managers should not stay stuck in their ways as this will only hurt profits – remaining adaptive and forward-thinking will be key to growth. »
