Equator: Why Wealth Managers Must Invest in Tech

Equator: Why Wealth Managers Must Invest in Tech

Few sectors have escaped change during the Covid-19 pandemic, but wealth management was met with a perfect storm of issues that will forever alter the industry’s face. A toxic cocktail of miss-selling, an extended hangover from the previous decade’s financial crisis, and the rapid shift to online and self-managed investments have dealt blows to a historically resilient profession. Throw in a hefty compliance and paperwork burden, along with a legion of wealth managers reaching retirement age, and it’s fair to say many firms have been buckling under the pressure of a resourcing crisis. And yet, while all of these events leave the future uncertain, a considerable growth opportunity is within reach. For the time being, at least, consumer borrowing is at its lowest since 1994, with global savings swelling by $5.4tn . In the UK, more fortunate households were able to put away more disposable income during lockdowns, while the recently ended furlough scheme protected millions of incomes. While we should remember that the pandemic has taken its toll on some people, others will seek ways to grow their wealth. Modern digitally enabled and reputable wealth businesses are in the perfect place to capitalise. But to succeed, they will need