The paradigm shift in the wealth management landscape is occurring rapidly.The firms that emerge as the leaders in the decades to come will be those that are best able to quickly respond to changes in their external environment, business mix and operating models, as well as meet the needs of increasingly sophisticated corporate clients and investors empowered by technology.
Tech-savvy consumers have within their control the ability to damage or promote products and services like never before. Wealth managers must keep up to date, as social sentiment can now affect their bottom line minute-by-minute instead of month-to-month.
On the industry side, wealth management leaders need to seek new angles globally. They must assume that their competitors are already pursing social media and other new digital channels to spread their influence and business outreach.
Wealth managers must embrace social media as another tactic in their client outreach strategy. The stakes are too high to sit this one out and hope that social media will pass as yet another fad (it won’t). The power to persuade has shifted and now firmly resides in the hands of connected individuals. In future hindsight, this very well could be the ‘do or die’ moment for the wealth management industry – no matter how ‘inconvenient’ this truth turns out to be.