The wealth management (WM) industry is now undergoing a lot of change. The expectations and preferences of a new generation of investors have changed the standards by which advice and investment products are offered in the market as a result of new technologies and the lessons learned from previous financial crises. Due to a challenging investing environment marked by increased levels of risk and uncertainty, advisors are finding it more challenging to achieve great investment performance for their clients. Many long-standing client/advisor relationships may be impacted by the ageing of advisors and the upcoming wealth transfer from baby boomers to their children, which may also present opportunities for new businesses to gain market share. The level of upheaval in the WM industry is also made worse by new business models, increased regulatory costs, and altered competitive dynamics.

The wealth management industry has a lot of opportunity for disruptive innovation. The infrastructure for wealth management needs to be digitalized now more than ever. Digital wealth management comprises using technology to provide value, offer expert support, and improve the investing experiences of customers. It goes beyond simply offering online channels for transactions.

Another outcome of the introduction of digitization is the creation of robo-advisors, which are automated, algorithm-based systems that provide wealth management advice. Thanks to these user-friendly systems that combine science and human judgement in advising models, a sizable portion of the population may now access and afford the full investment process. Big data and advanced analytics are transforming the industry by introducing new methods for interacting with potential clients, managing client relationships, and limiting risks. By collaborating with wealth tech providers, traditional wealth advisory businesses can increase their capabilities and digitalization more quickly and affordably.

However, the wealth management sector as a whole is taking its sweet time to adapt to technology. It's about time the conventional techniques were improved.