Wealth Management Trends 2023

The spotlight of 2023 falls on the pivotal role of digital technology and automation. The survey reveals that UK financial services firms have identified these as leading priorities for both business strategy and investment in 2024 and beyond. The adoption of AI and associated technologies is positioned as the key to unlocking untold wealth in the sector.

In the Wealth & Investment Management sub-sector, changing client demands, economic uncertainties, and regulatory pressures have accelerated disruption. Despite these challenges, the survey indicates a relative confidence among managers in revenue growth for the upcoming financial year. Strategies such as mergers & acquisitions, process optimisation, and automation are identified as key areas of investment to navigate the evolving landscape.

Looking at the present scenario, 94% of respondents report an increase in revenue over the last financial year. The Bank of England base rate rises are identified as a primary driver by 49% of respondents. Key measures of client engagement, including customer retention, improved product offerings, and exploring new markets, underscore the industry’s commitment to meeting client expectations.

As wealth managers face external factors impacting financial and operational performance, the survey reveals that 56% of organisations have adapted their current business strategy to maximise value or minimise operational risks in the next financial year. Economic fluctuations, cyber security vulnerabilities, and technological risks are identified as the biggest challenges.

Looking forward, 88% of wealth & investment managers express optimism about financial performance in the next financial year, though 50% highlight economic instability as the biggest challenge. Cybersecurity concerns (30%) and workforce capability (26%) are also top-of-mind as the sector implements hybrid operating models and virtual tools.

Despite challenges, the survey outlines the most important investment areas for 2024 as mergers & acquisitions (34%), process optimisation (28%), and process automation (26%). Firms are gearing up to face continued challenges from market volatility and regulatory requirements with a clear focus on strengthening organisational capabilities.

In this dynamic landscape, VENDOR iQ emerges as a key player, providing actionable insights across the supply chain. The platform’s ability to offer real-time insights and enhance compliance and operations monitoring by 100x positions it as a strategic partner for wealth managers aiming for efficiency, risk mitigation, and uncovering opportunities in 2024 and beyond.

As we step into 2024, the wealth management sector stands at the crossroads of challenges and opportunities. By leveraging the insights from 2023, embracing digital transformation, and strategic partnerships with platforms like VENDOR iQ, wealth managers can navigate the uncertainties and chart a course towards sustainable growth and client satisfaction in the coming year.

Source: Johnston Carmichael, Financial Services Sector Survey 2023