Retaining talent is the greatest concern for wealth managers over the coming year, according to research from WTW and the Thinking Ahead Institute.
The study surveyed the views of 250 global wealth management professionals from across five regions and 27 countries, with each firm managing at least $500m in assets.
Some 40% of respondents said attracting and retaining skilled professionals is the greatest challenge for wealth managers, as it can hinder firms’ ability to deliver consistent expertise.
Over a third of those surveyed also anticipate the accelerating pace of digital transformation will pose significant hurdles for wealth managers, with many highlighting the difficulty of keeping up with technological advancements.
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Meanwhile, meeting evolving client expectations and deepening engagement were cited as the two top priorities for wealth managers this year, with 51% naming these areas as their key focus. WTW said this underlines the industry’s drive to offer a more personalised and responsive service.
Other priorities listed included growth through innovation, with 32% planning to expand or develop new services and capabilities, while 31% said ongoing adaptation to changing regulatory and compliance demands.
Results varied by region, with the research flagging differing rates of digital adoption and client values across continental Europe, Asia, North America and the UK.
In Asia and continental Europe, business ownership remains the leading source of wealth, while inherited wealth dominates in the UK and North America, which WTW suggested reinforces the need for bespoke multigenerational planning.
Ben Leach, head of GB retail and wealth investments at WTW, said: “Our latest research clearly shows that wealth managers are responding to a new era of client expectations and industry complexity. Deepening engagement, attracting and retaining top talent and responding to regional differences are no longer just aspirations they are essential to sustaining growth and delivering value.
“The industry’s success will ultimately be shaped by its ability to adapt and put the client relationship at the heart of every decision.”
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