A (ever) heavier regulation
This trend is the continuity of a vast revolution started in the late 2000’s. In 2015, the European Commission voted MIF II (read more here) that is in effect in Europe. Asset managers must integrate this additional regulation and provide extra compliance controls. In Switzerland, the Financial Services Act created an ever heavier workload for independent asset managers (IAM). Basically, we can expect the regulation authorities to increasingly focus on protecting clients and to evolve toward a “culture of compliance”.
Banks increasingly adopt Fintech technologies
2016 is likely to be the year when banks and Fintech get closer. Private banks will learn how to make the most of these innovations, especially thanks to the concept of “API-culture”. Innovative and flexible fintech services will interface smoothly with the stable banking networks. This convergence between fintech and “traditional” financial services can help banks overcome their computer crisis.
Young HNWI are a growth driver
The number of millionaires is growing and an interesting fact is that it includes an increasing number of young people, especially young entrepreneurs. This new generation of HNWI is a real disruption for asset managers. Unlike their parents, this group of new clients is less loyal and they have high expectations in terms of service. The best way to address this new demand is to address their need for mobility, transparency and connectivity with 24/7 accessible services, direct contact with their advisors and a near real-time view of their assets.
We already mentioned this trend for 2015 and no surprise; it is also in the agenda for 2016. Wealth managers and private banks clients will not accept any step backward. Providing private and secured communication means to enhance client experience is definitely will help wealth management professionals foster competitiveness and loyalty from their client. Facilitating connectivity with clients is not necessarily incompatible with the tradition of confidentiality that characterizes the wealth management industry.
It is a fact, banks are today under-protected against the cyberattacks threats. In 2016, they are expected to massively invest in cybersecurity according to a survey published by the Wall Street Journal in December 2015. They also thrive to have a strict IT policy respected by their employees, who are responsible for 30% of data leakages. As far as independent asset managers are concerned, they are also a coveted target for hackers.