With an estimated $68 trillion set to change hands in the next 25 years, a new report released by the American Bankers Association delves into how that wealth transfer will affect wealth management practices. The survey—which includes feedback from banks of all sizes—provides a look at what the wealth management landscape will be in the future and offers eight key insights that banks can take action on today.
For example, by the year 2025, wealth managers will be tasked with serving five generations of clients, with each generation having different attitudes toward wealth. The survey notes that over the next decade, wealth managers will need to evolve their practice to focus more on proactive client outreach and business development, forge relationships with the next generations, and position themselves as experts, among other things.
The report also emphasizes the need to acquire and develop talent in the wealth management area. The current average age of a wealth adviser is 58, signaling that many wealth managers could be retired by 2025, and the survey found that the top most pressing concern among survey respondents was bringing new talent into the bank. Other top concerns included retaining existing talent and skills development for advisers serving wealth clients.
ABA will host a webinar on Dec. 11 at 2 p.m. EST to review the survey findings and discuss how banks can begin working today to prepare their wealth advisers for the future. Bankers can also register to attend ABA’s Wealth Management and Trust Conference, to be held Feb. 23-25 in Orlando, Fla.