Technology and the internet have combined to revolutionize how a large portion of the world's population interacts, communicates and behaves. While this presents considerable opportunities, it also presents deep challenges to business models in an age when trust in financial services has been severely damaged.
It is estimated, in 2013, that one in four people worldwide will use social online communities, networks or platforms1.
Importance of networks and social relationships - Significant behavioral changes and an expectation driven by social media for consumers to like, share, and comment is impacting consumer's patience for impersonal service and generic propositions.
The consumer of tomorrow is increasingly going to expect personalized service and customized or tailored propositions.Importance of trust and integrity – Increasingly people are trusting 'people like me' rather than corporations or professionals and, as such, word of mouth and viral messages are becoming more powerful than traditional advertising.
Demand for immediacy – Today's society is characterized by the desire for instant gratification. Shortening attention spans, combined with a thirst for information are increasing consumer and investor demands for immediacy and 24/7 access across multiple media.
Trends in social values, behavior and ethics are likely to make tomorrow’s investor to be even more demanding, characterized by a desire for immediacy, valuing simplicity and transparency and expecting a more personalized service.
1eMarketer, "Social Networking Reaches Nearly One in Four Around the World", 18 June 2013
Demographic trends will affect investment management industry. Trends magnify need for effective management and will radically change client base.
Resource insecurities are changing investment opportunities. Clients increasingly incorporating sustainability into investment purchasing decisions.
The investment industry is likely to look different in 15 years, as clients needs, requirements and behaviors are likely to change considerably.