Wealth management for the many, not the few

How to prepare for wealth management in the new era – and create long-lasting customer relations through simpler, more accessible processes

Like most major industries, the financial sector is undergoing a significant shift. Retail banking is being revolutionized, with clients able to set up accounts via a streamlined online process. For brokers, it means eliminating trading costs.

Wealth management is experiencing something similar; albeit, through a different process. Although we at Avaloq expect advice to be automated and digitized, service will still focus on the relationship between client and wealth manager, with trust and reliability crucial for long-term capital appreciation of a client’s portfolio.

“48% of financial advisers say that trust and personal relationships are top factors affecting client retention.”

Forbes Insights

What democratization of wealth means for the finance industry

The factors re-shaping the way we approach wealth management

More people have access to a greater quantity and quality of investment strategies and advice that was once reserved for ultra and/or high net worth individuals (UHNWIs & HNWIs). While the younger generation of investors also demand convenient digital solutions. These preferences, along with advances in technology, are fuelling the democratization of wealth management. So, how should financial institutions prepare for this market shift?

“Two drivers that will accelerate this democratization of wealth management are a shift in investor preferences and advances in technology.”


First, let’s consider the old, classic method of customer segmentation, where new wealth clients are commonly asked how many assets they own – with more assets under management meaning greater economies of scale. Today, that approach is outdated. Now, it is common for financial institutions to not only support HNWIs but also affluent clients with high potential.

"Our vision for the future of wealth management is not to remove the human relationship an investor has with an advisor, but enhance the relationship through technology and increase engagement & satisfaction.”

Jürg Hunziker

CEO Avaloq

Rethinking how and when to sell to customers

Why the future of finance depends on wealth managers engaging with their clients on a deeper level

At Avaloq, we see democratization of wealth management as one of the most disruptive and important elements for financial institutions to consider for future growth.

But first, wealth managers need to rethink how and when to sell to customers – and that means deciding how to leverage client data in order to enhance the client experience. The future of finance is an end-to-end experience – similar to how a shopper might experience buying a product or service through Amazon or Apple Store: a seamless, predictive process that integrates several elements to strengthen the bond between the relationship manager (the customer-facing side of the business) and the client.

That’s where we see our technology and solutions playing a key role – by enhancing adviser service and client engagement within the democratized era.

If you’d like to get insight on what democratization of wealth means for the finance industry, get in touch.

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