Wealth Management across generations

With $10tn due to transfer between generations globally in the next decade and 80% of heirs seeking a new investment manager, I consider delivering on the wants and needs of a digitally native and environmentally or socially conscious generation a strategic priority for wealth management firms. However, I firmly believe that does not mean every firm should replace its humans with robo advisers. And client desires for environmental or social investment will always be spread across the spectrum from traditional investment to philanthropy. But where to start?

Its not all about robo

From matching clients with advisers using artificial intelligence, to allowing clients to self-serve via a portal or gaining a better understanding of operations through automating and analysing regulatory reporting, the technological options available are many and varied and span the entire client journey. My experience affords an understanding of the benefits of each option and allows me to match them with the challenges and drivers behind a firm’s digital transformation with the ultimate aim of striking the right balance between expenditure and return or client experience and the human touch.

ESG: Going mainstream

The ESG landscape is changing rapidly, whether at the business level or the fund level. The number of BCorp accredited firms has more than doubled in the two years to August 2023, each of them focusing on both profit and purpose.  Having chaired an ESG Advisory Board that was tasked with assisting in the achievement of BCorp accreditation at a firm of Wealth Managers, I have a strong understanding of the factors and stakeholders that must be considered to live and breathe ESG at the firm level.

At the portfolio level, with climate reporting requirements for companies having been brought in and nature related disclosures in the pipeline, big steps are being taken to strengthen the data ESG decisions are taken on. In the meantime, the FCA has acknowledged that consumers are looking for ESG outcomes, rather than ESG risk mitigation, by introducing new regulation to categorise funds and compel them to provide disclosures regarding their ESG objectives and how this has influenced the outcomes. As chair of the TISA Responsible and Sustainable Investment Working Group and Chair of the Oct Members Responsible Investment Forum, I provided feedback directly to the FCA on the development of the SDR and Labelling regulations and therefore have an in depth knowledge of its requirements and how they should be applied to funds and portfolios. Even if you personally believe it is a fad, can you afford to risk that not being the view of your clients?

Combined, my understanding of ESG can inform a healthy debate on how to position your firm to handle this hot topic.

What Do I Do?

Working as either a non-executive director, independent board advisor or consultant, depending on the firm’s needs, I will bring my knowledge and experience to bear in a conversation about your firm and its goals. As a consultant, my contribution will be collaborative and specific to the journey you wish to embark on, whether that be digital or environmental. As a NED, I will bring constructive challenge to ensure the strategic direction you take is right for your firm and its clients, not only on specific projects such as ESG or digital transformation, but also across a wider range of areas of added value such as risk and culture.

Useful links:

Crealogix: What keeps leaders awake at night

Octo Members: Greenwashing

Financial Executive Women: Digital Transformation Series