The dynamics of changing the asset industry
The asset management and wealth manufactures face a transformative moment. Although 12 % increase in Global assets under management (AUM) to 120 trillion dollars, profitability and revenue did not keep pace with. the profit The needle barely moved in 2023, while profits decreased by 8.1 %. Asset managers feel financial pressure, and they face pressure expenses. Retail investors, in particular, pay average 50 % higher fees One of the institutional investors, which sparked a boost towards cost effectiveness. But reducing costs is not enough: they must also expand their customer base and prepare to transfer unprecedented wealth for generations, as children are transferred to wealth to the millennial and general generation 84 trillion dollars During the coming decades.
This transport represents a great opportunity but also a challenge. The Millennium and General Z generation, often first digital and driving, expects a modern and friendly approach to wealth management phones. They value transparency, ease of use and customization, which makes pressure on asset managers to adopt new technologies and axis of traditional relationships. Technology has become a cornerstone of any strategy to attract and preserve these generations, which enables companies to provide digital experiences, data -based allocations, and socially responsible investment options they expect. Without following an approach that supports technology, companies risk losing importance and market share because these emerging generations assume greater financial strength.
Customer base claim
Attracting the attention and loyalty of the millennial generation and General Z is not an easy thing. This generation of investors seeks control, transparency and flexibility – the characteristics that often require more flexible digital infrastructure than many old asset management companies currently offer.
1.First mobile preferences
Young generations are able to reach their financial resources anytime and anywhere. A recent study showed this More than 90 % From the millennial generation it prefers mobile applications for banking and financial services, and we expect a similar access from asset managers. This generation wants a smooth digital experience that allows them to monitor and manage their wealth.
2. Request for transparency and comfort
Millennium generation and General Z distinguishes customers who expect transparency about fees, investment risks, and public performance. In reality, More than half will turn Financial institutions, if they feel that their current provider lacks transparency. They want information and visions in the actual time to make informed financial decisions, and the traditional models of the service are often struggled.
3. Personal and moral investment
Socially responsible investment is a priority for young generations. Research from Morgan Stanley shows that 96 % of the millennial generation is interested in Sustainable investmentAnd a request that was amplified only through environmental and social concerns and governance (ESG). These clients want a designed conservative, socially responsible, and asset managers who cannot present them may struggle to get their confidence.
Millennial generation agents and GEN Z customers have high expectations for immediate financial information. Actual access to financial statements, performance standards and market visions improve transparency, but also enables customers to make enlightened decisions. Companies that provide real time, and modern data enhance a sense of confidence and reliability-the main factors in building long-term relationships with customers with digital tastes.
Technology creates sticky clients for asset managers
To face these challenges, assets and wealth managers are highly dependent on technology. They build technical chimneys with advanced analyzes, predictive tools and regulations of digital customer relationship management (CRM) that enhance the customer’s experience from daily management to daily portfolios management. Here is how to reshape these tools:
1.Digital systems on board and CRM
Investing in Digital Onoarding and CRM managers allows asset managers to provide an effective and effective service from the first point of communication. The Turkish digital has speeded up the customer’s acquisition, enables smooth verification, and sets the basis for a digital smooth relationship. CRM systems also facilitate the designer communication and help identify the needs of the customer, which leads to stronger relationships for the customer.
2. Advanced analyzes and predictive tools
Through advanced analyzes, companies can obtain deeper visions of customer behavior, preferences and potential needs, allowing them to create more targeted and effective participation strategies. Prediction analyzes analyze a step forward by helping managers expect life events or changes in risk appetite, and enable proactive awareness and participation. This is very important to maintain customers with the development of their financial needs.
3.AI-settling it
Amnesty International allows asset managers to provide advice and investment products dedicated to the files of definition of individual risks, financial goals and personal values. Through automated learning algorithms, companies can assess huge amounts of customer data to provide custom recommendations. One poll showed this 58 % of the millennial generation They may replace financial service providers for more customized services. It can meet the allocation made by artificial intelligence this request, providing the millennial interest and the expectation of Gen Z.
4.Participation outside the line
Younger customers expect frequent communication, whether through actual time alerts, personal notifications or virtual meetings. Video calls, chat chat and other virtual sharing tools enable managers to communicate with customers immediately and meet “always” expectations. By providing themselves and responding through digital channels, asset managers can provide active participating young customers.
Strong cybersecurity measures, such as biometric authentication and multi -factor authentication, have become increasingly important with electronic threats growth. More than half of the millennial generation Consider the security of strong data is an essential factor in choosing a financial provider. With stronger security measures, companies can build confidence needed to maintain the loyalty of the customer.
Young generations are aware of the privacy of data, and the companies that determine their priorities in a better position to win their confidence. The clear transparent privacy policies and first -class cybersecurity practices ensure that customer data is safe. Providing these guarantees not only meets the regulatory requirements, but also fulfills the expectations of clients who focus on privacy.
Asset managers can benefit from technology to simplify compliance and improve transparency, especially in areas such as fees and investment risk. This approach centered on the user in compliance with customers allows exactly where their money is going, and increasing the construction of the confidence needed to keep them in the long run.
It’s time for the axis now
The asset management and wealth sector is still in good health, with continuous growth. However, companies must develop to capture opportunities completely by transferring generations wealth. By adopting technology -led initiatives, asset managers can appeal to younger investors while moving on fees and organizational demands. Companies that adopt a wide and comprehensive technical strategy-extend to the customer life cycle, from customization to customization to the port-better to meet the forecasts of the millennial generation and Gen Z. This will ensure a long-term basis for growth and importance, and the loyalty of the customer in the era of digital wealth management.
About the author
Executive Vice President and Head of Financial Services for Capital Markets, Infosys
Sash things He heads the Infosys Capital Services Department. He has worked widely with leading asset management companies to transform their organization and provide influential solutions. He leads initiatives to enhance customer and leadership participation
Operating efficiency. Sachin has worked in the fields of multiple technology through the business of capital markets to push technology transfer and build developmentable operations teams. It focuses on leading innovation and partnership with customers to hand them over.
