In the coming year, wealth management executives are most concerned about cybersecurity and regulatory compliance, implementing the right technology tools and ensuring AI readiness, according to a recent wealth management trends report by accounting firm Wipfli.
Wealth management leaders “recognize that technology is the critical factor determining their company’s success or failure” and though they are “confident” about revenue growth this year, “they are acutely aware of the risks associated with future tech investments,” the survey noted. Ninety-one percent of respondents project their firms to grow 5% or more, with 36% expecting growth of 8%-10%.
The report also examined succession planning, revealing that 52% of respondents believe technological advancements will drive future ownership changes within their firms. Despite a strong preference for internal transitions — to employees, shareholders or family members — the reality is that third-party sales are far more prevalent, the survey noted. “This discrepancy highlights a critical area for executives to address if they wish to align their succession plans with their long-term vision,” survey authors said, adding that it “suggests an opportunity for executives to start thinking about how they can facilitate an internal transition, if that’s what they want to see.”
Respondents highlighted that tools such as automation apps and AI are making a significant impact on their business. When it comes to AI in business applications, however, most wealth management leaders are still in the exploratory phase, recognizing the potential but “proceeding with caution.”
