By Richard Binder | January 14, 2021 at 07:53 AM
As the COVID-19 pandemic played havoc with the economic realities of 2020, businesses adapted as quickly as they could by moving to remote work, contactless payment options, and online lending. According to Aite Group’s top ten wealth management trends for 2021, firms should not think about saying goodbye to these changes just yet—and those that were slow to adjust may find themselves struggling to catch up.
“Despite the approval of vaccines in late 2020, the first half of 2021 is still expected to continue much like 2020 ended,” the report states, “with remote working, drastically reduced travel, and client interactions conducted almost exclusively on a virtual basis.
“Firms should not be fooled into thinking about changes in operating posture as mere temporary workarounds, as much of them, while slightly modified, will persist post-pandemic,” the report continues. ”Time is of the essence for wealth management firms to embrace the new normal and invest in staff and infrastructure in order to keep up with client behavior and faster-moving competitors.”
Among other trends, Aite Group’s researchers predict a rise in market consolidation and social selling, which the report says “is quickly becoming a critical area of expansion and point of differentiation for FIs [financial institutions] and financial advisors.”