Top 5 Trends in Wealth Management for 2018

Top 5 Trends in Wealth Management for 2018

By Charles Kozler

The wealth management industry saw significant and surprising changes 2017. 2018 will see a continuation of those changes and some new twist. Here are the 5 top trends to be aware of:

1. Cryptocurrencies, which one to buy?

Bitcoin became the hot cryptocurrency in 2017 as its value soared … Regardless of the real possibility of the bitcoin bubble, cryptocurrencies must be a part of an investment portfolio, especially with millennials. The increased demand and volatility requires trading platforms to connect and trade the currency and the future. Flyer is used by brokers today to trade cryptos, providing fast access for institutional traders. Do you have a need?

2. 2018 is the year of Robo 2.0

Today’s Robo-Advisors have made it easier to invest and manage money, however, it has primarily resonated with millennials. Robo 2.0 will use artificial intelligence and machine learning to automatically provide financial planning services to manage all investor needs. More importantly, it will provide initial financial advice as a baseline for clients to plan for the future.  RIAs will use Robos as a tool to reach tech-savvy investors.  Flyer works with RIAs and Robos to automate rebalancing and trading.

3. Shake-Up or Shake-Down? Financial advisors need to change fee structures

Lower cost investment options such as ETFs and Robo-Investing have put considerable pressure on traditional financial advisors.  Instead of continually lowering fees to compete, managers will expand their offerings and highlight their value-add to differentiate including varying fee structures for specific services.

4. Danger ahead! Be prepared for the next big market correction

Were you protecting your clients with solid risk management and hedging strategies back in 2007 and 2000?  Of course you were, because you were one of the few contrarians that were highlighted on 60 minutes. That’s why you started this trend again this year, to prepare for the next correction and your next magazine cover.  After all, you noticed that the mad rush to bitcoin feels eerily like that tech stock bubble, and all of this Robo investing and ETF indexing without liquidity reminds you of a high-frequency system that’s missing a circuit breaker. And that’s why your clients will continue to value your advice.

5. The consequences of the broker protocol break up

With UBS, Morgan Stanley and Citi pulling out of the broker protocol, other members will follow suit.  Advisors are finding it harder to leave as brokers try to lock in clients and AUM. Brokers who are still part of the protocol have a chance to attract assets & migrate advisors but the window is shrinking.

What top trend do you see in Wealth Management?

Are you facing pressure to consolidate trading networks, eliminate redundant providers, trade cryptos, rollout a Robo,  improve your wealth management platform?  Flyer’s solutions have been helping 100’s of clients for a decade.  Click here for more information.