10 wealth management trends for 2023 that should not be ignored

28 Dec 2022


In a pandemic or post-pandemic context combined with an acceleration of digitalization, the world of wealth management is facing multiple challenges at an unprecedented rate.

In this article, we share 10 trends that the KeeSystem team has identified as what should be prioritised by wealth management companies and family offices in 2023.



Wealth & asset management : 10 trends to watch in 2023


1. The increasing importance of ESG investing


Environmental, social, and governance (ESG) investing has gained significant traction in recent years, with many investors looking to align their investments with their values. In 2023, we expect to see a continuation of this trend, as more investors seek out opportunities to invest in companies that are making a positive impact on the world. Wealth managers who can offer a range of ESG investment options will be well positioned to attract and retain clients.

A report by Bloomberg Intelligent predicts that global ESG assets will exceed $53 trillion by 2025, accounting for about one-third of the projected $140.5 billion in total assets under management.

In addition, one in five asset managers say their clients’ preferred sustainable investment approach is to optimise the ESG score of their existing portfolio.

43% of ultra-HNWIs and 39% of HNWIs under 40 are likely to request an ESG score for products offered by their firm.

This shift is forcing asset managers to align their strategy towards more socially responsible and sustainable choices.

Asset managers are trying to improve their ESG rating capabilities, either in-house or by partnering with WealthTechs specialising in ESG asset performance measurement.



2. Regulatory reporting requirements have been increasing in 2022.


UCITS funds, which are preparing for the transition to PRIIPS KIDs for retail investors starting in 2023, and the implementation of ESG regulation, are also required to comply with the European Securities and Markets Authority’s guidelines on liquidity stress testing, introduced in September 2020. These guidelines require fund managers to stress test the assets and liabilities of their funds, including potential redemption requests, in order to manage liquidity risk. In addition to these requirements, UCITS, AIFMD, MiFID, DTCC reconciliation under EMIR, Solvency II, ANNEX IV, OPERA, and other regulations already impose extensive reporting obligations on wealth managers, requiring them to devote more efforts to regulatory compliance than ever before.


3. Millennials’ financial management differs from that of their parents.


Younger generations of investors educate themselves and conduct one-sided research before choosing their advisor. This change in mindset that characterises this generation and Gen Z is also reflected in a shift in investment habits towards products that take into account environmental and societal issues such as ESG.

This change is forcing wealth management companies to rethink their offer, their client experience and their advisory strategy in order to appeal to Millennials.



4. Digital Onboarding: a priority for companies


Digital onboarding is a priority for companies in times of health crisis.

Digital onboarding is the process of automated acquisition through a digital device to onboard users in an agile, simple, safe and guaranteed way. From the client’s point of view, the initial information gathering phase is reduced, made fluid and simplified thanks to the secure transmission of the necessary documents digitally.

The simplification of the preliminary stages significantly improves the customer experience.

For example, 68% of clients expect 100% digital integration following the covid 19 crisis.

For the wealth management company, digital onboarding automates the creation of a new client account and reduces administrative exchanges with the client. In addition, the dematerialisation of documents reduces the issue of paper and eliminates the physical storage of documents.


5. Offering a digital reporting experience


In the highly competitive environment for capital, a superior reporting experience can be a key factor in building loyal clients and attracting new mandates. Investors are increasingly seeking out wealth managers who offer a digital reporting experience through a client portal that allows them to view top-level performance and risk metrics in near real-time, as well as delve into detailed information at the individual security level. Static, periodic reports alone are no longer sufficient for asset managers seeking to differentiate their services.


6. The role of technology in wealth management


Technology is transforming the way wealth is managed, and this trend is only going to continue in 2023. Wealth managers who can leverage technology to streamline operations, improve the client experience, and deliver better outcomes will have a significant advantage. This includes the use of a powerful portfolio management software  as well as the progressive adoption of artificial intelligence and machine learning to automate investment decisions…


7. The family office model continues to expand


The number of ultra-high net worth individuals has almost doubled in 10 years, from 102,000 in 2010 to 200,900 in 2020; over the same period their wealth has increased by 76%.

This structural evolution is accompanied by the rise of a new clientele, with more complex and personalised financial advice needs and thus the rise of a new generation of family offices.

The family office model is developing worldwide, and in France in particular, with players linked to a single family (mono-Family Offices), and structures that cater to several families (multi-Family Offices) which may be independent or housed within banks or management companies.

The growth of the family office model is driven in particular by expectations of a high degree of customisation, which goes beyond “simple” portfolio management. The family office model makes it possible to integrate the vision and values of investors who are looking for expertise, a vision of wealth management and a wide range of services.

Read also: Developing a family office service offering as an independent manager


8. The continued rise of alternative investments


Alternative investments, such as private equity, real estate, and hedge funds, have gained significant traction in recent years. In 2023, we expect to see a continuation of this trend, as more investors seek out opportunities to diversify their portfolios and potentially generate higher returns. Asset managers who can offer a range of alternative investment options will be well positioned to attract and retain clients.


9. Enhanced risk management


During times of market volatility, investors have high expectations for risk management. It is crucial for asset managers to have robust processes and high-quality risk reporting, as well as the ability to provide a wide range of analytics, including portfolio sensitivities, scenarios, stress testing, risk contributions, liquidity analysis, and performance contribution and attribution. Strong risk governance frameworks with daily automated monitoring of regulatory and fund risk profile limits, and alerts for any breaches, are also essential for maintaining the integrity of the fund.


10. Leveraging data


As asset managers seek to increase operational efficiency, they are reviewing their data strategies in order to improve the quality of data used for portfolio analysis, client reporting, and regulatory reporting. The ability to comply with regulatory reporting requirements is often dependent on the ability to consolidate and aggregate data from multiple systems. Many wealth managers are finding that legacy systems struggle to handle the large amounts of data required, particularly when integrating new ESG or risk metrics into portfolio analysis and reporting. Accurate and timely data is also essential for comprehensive performance and risk reporting.


Related articles


Decentralised finance, a technology trend that is shaking up the world of finance.

Blockchain infrastructure and trading in digital assets and crypto-currencies. 


How do you incorporate these trends in wealth management for your wealth management company or family office?


First, assess where your organisation situation. You may already have integrated solutions or services that address the wealth management trends identified for 2023.

After doing this assessment, you will have a better view of the opportunities for your asset management firm that require action and potentially some investment.

To integrate most of the trends in asset management mentioned here, being equipped with a portfolio management software is essential. Having a technological solution is essential to meet these challenges.


About KeeSystem


KeeSystem helps asset management companies and family offices manage their business and their digital transformation more efficiently. We increase their impact in terms of services, profitability and business development through our KeeSense portfolio management solution.


For more information or to request a demo, please contact us.


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