.png)
As part of our focus on the world of Wealth Management recruitment, we caught up with Sam Anderson, one of our Compliance & Financial Crime experts.
Since Sam's promotion to consultant in summer 2023, he has immersed himself in the complex world of Wealth Management, meeting the challenge of fulfilling a host of complex technical roles for clients across the UK.
Here, he shines a light on the most pressing issues that the Wealth Management sector currently faces, as well as the latest economic developments and what the future holds for this vibrant industry…
What are the top challenges, issues and factors affecting the Wealth Management space in 2024?
In 2024, the Wealth Management industry faces several key challenges that will shape its landscape. First off are the ways in which the regulatory environment will continue to evolve, with new rules impacting various aspects of wealth management, including client onboarding, investment advice, data protection and compliance procedures.
Then there is the fact that firms are increasingly investing in digital tools and platforms for client interaction, portfolio management and data analytics that combine automated and human advice. Integrating these technologies seamlessly - while ensuring data security and maintaining personalised client relationships - poses its own challenges, but younger generations prefer convenient, tech-enabled solutions.
In addition to this, global economic trends and market volatility will impact investment strategies and client portfolios. Wealth firms must navigate these uncertainties while managing risk and delivering returns in line with client objectives.
What are your top Wealth Management predictions for 2024?
There will be a growing emphasis on sustainable and responsible investing strategies, driven by an increasing awareness of ESG and a rise in regulatory initiatives promoting responsible practices. This means that wealth managers will need to incorporate ESG considerations into their product offering to align with mounting client preferences.
Firms will also need to increasingly personalise their services and investment recommendations to meet the specific goals and values of individual clients. This will leverage behavioural insights and advanced modelling techniques to deliver more bespoke and fruitful solutions.
Finally, more traditional Wealth Management firms will face competition from new and more progressive market entrants, including fintech startups, big tech companies and non-traditional financial service providers. If they can demonstrate they’re taking steps to stay ahead of the curve, this will stand them in good stead for future success.
How Has the ongoing cost-of-living crisis impacted Wealth Management recruitment?
Over the past year or so, the cost-of-living crisis has led to an increased demand for financial planning services as people attempt to navigate economic challenges, such as high inflation, rising living expenses and stagnant wages.
Wealth Management firms, as a result, may prioritise hiring advisors who can provide value-added services, such as budgeting advice, debt management strategies and investment solutions which are tailored to mitigate the effects of increasing inflation and other matters of financial hardship.
The current crisis also poses a raft of recruitment challenges for Wealth Management firms. Potential candidates may be more cautious about changing jobs or relocating, particularly if they are concerned about job security or the affordability of living in certain areas. This means that firms may need to reassess their salary and compensation packages, as well as consider offering flexible working, to remain competitive and attract the best candidates.
how do you think AI will affect wealth management? what areas might be most affected?
AI is certainly shaking up many sectors in the UK, including wealth management.
We're seeing hyper-personalised client advice thanks to AI's data analysis, AI acting as a risk management partner, and unlocking hidden investment opportunities by analysing market trends.
Early adoption of AI is key to staying competitive – it shows you're innovative and efficient. But remember, AI isn't a replacement for human expertise. Train your advisors to leverage AI's power while offering the personalised touch clients appreciate.
Embrace AI strategically, and your firm will be positioned for success in this exciting new era.
What else do you predict will be the next ‘big thing’ when it comes to Wealth Management?
Expectations have risen among investors, employees, regulators and society. By 2030, social impact investing will go mainstream, as investors combine ESG and financial criteria when evaluating their investment portfolios.
Any key advice for candidates? For example, what are the top skills Wealth Management employers look for?
Candidates should have a solid understanding of a host of complex financial concepts, including financial planning, investment principles, portfolio management, risk assessment, taxation and retirement planning.
Effective communication and interpersonal skills are essential for building and maintaining relationships. Candidates should demonstrate their ability to build rapport, understand client objectives and provide personalised advice to help achieve financial goals.
Obtaining industry-recognised certifications, such as the Certified Financial Planner (CFP), Chartered Financial Analyst (CFA) or Chartered Wealth Manager (CWM) can enhance credibility and demonstrate proficiency in Wealth Management practices.
Quick Fire
Recommend a...
Film / TV Show: I recently finished Kin and loved it. Would definitely recommend.
Manchester Venue: I always have a good night at Diecast or Albert Schloss.
Holiday Destination: Marbella. I went for New Years and definitely want to go back this summer!
Looking for a new role in the Wealth Management space? Or hiring for your team? Get in touch with Sam today!
Related Articles
Wealth Management: Gearing up for the "richest generation"
