We believe that investors’ expectations of, and interactions with, the industry will change considerably as a result of the evolving profile.
While there will inevitably still be the ‘time poor’, ‘uninterested’ or those looking for ‘someone to take away the problem’, we believe future generations will be more engaged in managing their savings and planning their retirements.
Investors will seek greater certainty and personalized solutions which can transition across life-stages. They will also demand a more holistic overview of their finances, saving and investments.
The growing relevance of social networks is also changing attitudes and behaviors. They are already creating a new ‘trust paradigm’, with people increasingly looking to ‘people like me’ rather than professionals for advice, guidance and direction.
As tomorrow’s investment management client looks to an increasing array of sources and peers for advice, being able to provide timely, relevant, engaging and personalized information and education about the choices available to an investor will become as important – if not more so – than the underlying product.
And of course, the increasing ubiquity and capability of personal technologies, combined with the search for convenience and immediacy will continue to drive demand and expectations for all this to be delivered seamlessly through a multiplicity of devices at any given point in time. The incredibly rapid rate at which new technology is adopted is one of the stand-out features of the modern age and the pace of development will only increase. Seventy-five percent of the global population now has access to a mobile phone and by 2030, it is thought that 50 percent of the world’s population will have access to the internet.1 This will drive huge change in behaviors.
And while it is perhaps easier to visualize change through the eyes of personal investors, institutional investors will also be changing. We see no reason why they won’t be calling for greater information, education, flexibility, solutions and certainty. And we are already seeing an exponential increase in institutional demand for tailored and multi-faceted delivery and reporting.
1European Union Institute for Security Studies. 2011
A new investment management value chain will emerge, necessitating changes to proposition sets, client engagement strategies and operating model.
Positive market prospects, the lack of innovation and new technology, creates potential for disruption from new entrants and propositions.