As the world battles with the effects of the pandemic (who would’ve thought we’d still be here, nearly two years on!), decision-makers need access to good quality information and industry insights more than ever in order to adequately navigate the year ahead.
Shifting customer attitudes, the rise of retail investors and the growing demand for digital assets highlight just how dynamic the operating space is for financial service providers. Below are some of our favourite pieces of content, which we hope you will find useful. We’ve naturally been gravitating towards information that will help our clients and followers build better strategies to help fuel their growth plans for 2022.
- Armed with information (some good, some not-so-good), retail investors are more enthusiastic and impactful than ever before. According to this report, over 6 million Americans downloaded a trading app during January 2021, which paints a pretty clear picture of the sheer volume and potential that retail investors hold. Whether the retail market forms part of your target market or not, this report from Deloitte provides some interesting points about how retail investors are changing customer expectations and investing dynamics: https://www2.deloitte.com/content/dam/Deloitte/us/Documents/financial-services/us-the-rise-of-newly-empowered-retail-investors-2021.pdf
- Sharesies recently released their 2021 survey which highlights the responses of Sharesies investors and other Kiwis attitudes towards financial wellbeing and investing. On the whole, Sharesies investors appear to be more knowledgeable about investments than the general population segment in this survey. Covid-19 has also had a huge impact on investors’ money habits, with 31% of Sharesies investors becoming more aggressive during the pandemic, compared to 9% of the general population. There are also some pretty interesting statistics around property ownership and retirement expectations, so make sure to give this a read: https://www.sharesies.nz/blog/kiwis-attitudes-to-financial-wellbeing-and-investing-in-2021
- From hybrid advisory capabilities to digital assets, CapGemini’s latest report delivered compelling insights into the top trends set to influence the wealth management space in 2022. The wide-reaching effects of the pandemic has accelerated digital transformation strategies in 2021, and there will be an even bigger focus on cybersecurity and human-centred design in 2022 to further improve the customer experience. It’s a fascinating read and should be a staple in your strategy-building library: https://www.capgemini.com/resources/top-trends-in-wealth-management-2022/
- Rainmaker Information has had a crack at guessing how big the robo-advice market could be worth in Australia, and they reckon there’s a $60 billion opportunity there. That’s twice what they estimated back in 2018! So what has spurred this growth? The drop in advisor numbers combined with fee-friendly digital offerings makes for the perfect environment for robo-advisors to flourish: https://au.finance.yahoo.com/news/60-billion-potential-what-exactly-is-robo-advice-225242402.html
- Globally, we are starting to see a collective shift from fund managers as they start to prioritise the digitisation of their distribution processes. While 79% of respondents indicated that data will be paramount to connect to their target markets effectively, the report reveals that better data-handling skills and more data sharing are the top two areas that need developing within fund management businesses. Read the full report by Calastone to see the top opportunities and threats for fund managers: https://www2.calastone.com/futureofdistribution2