Wealth managers and financial advisers are anticipating significant growth in their client base over the next three years, according to new global research by Ortec Finance.
The study, which surveyed professionals across the UK, Canada, Italy, the Netherlands, Germany and Switzerland, revealed that nearly two-thirds (64%) expect a 20% or more increase in clients by 2027.
The research included wealth managers and financial advisers representing organisations managing approximately £1.207 trillion in assets.
The anticipated growth is attributed to the rising number of mass affluent and high net worth clients, as well as increased investment in technology by wealth management firms.
Three-quarters (75%) of respondents reported growing demand from affluent and high net worth individuals, driving the need for enhanced financial services.
Over half (55%) of those surveyed highlighted that their investment in technology is a key factor in fuelling growth.
Technology is not only boosting efficiency, as noted by 46% of respondents, but also enabling firms to offer more client-centric services, according to 29% of participants.
The study further revealed that 59% of wealth managers and financial advisers have seen an increase in the number of clients they serve over the past five years. Only 5% reported a decline, while 36% observed no change.
Looking ahead, an overwhelming 98% of respondents expect their client numbers to rise over the next three years.
These findings underscore the optimism within the wealth management sector, driven by both market demand and technological advancements, positioning the industry for continued expansion.
Tessa Kuijl, managing director, Global Wealth Solutions, at Ortec Finance said: “Rising numbers of mass affluent, high net worth and ultra-high net worth individuals wanting support from wealth managers and financial advisers is driving global growth in the sector.
“However, in this digital age, investment in customer-centric advice technology by firms is an important enabler of client growth, with firms able to improve their propositions in general while also being able to enhance service to clients and work more effectively.”
Comments