{"id":47970,"date":"2021-06-07T04:00:31","date_gmt":"2021-06-07T11:00:31","guid":{"rendered":"\/us\/en\/blog\/?p=47970"},"modified":"2022-12-30T08:07:18","modified_gmt":"2022-12-30T16:07:18","slug":"2021-top-trends-in-investment-management","status":"publish","type":"post","link":"\/us\/en\/blog\/2021-top-trends-in-investment-management\/","title":{"rendered":"2021 top trends in investment management"},"content":{"rendered":"

Highlights<\/b><\/p>\n

Get ready to take on the top trends in investment management right now:<\/span><\/i><\/p>\n

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  1. Continued shift to the cloud<\/span><\/a><\/li>\n
  2. Efficient client onboarding and communications<\/span><\/a><\/li>\n
  3. New client opportunities<\/span><\/a><\/li>\n
  4. Deeper engagement with clients<\/span><\/a><\/li>\n
  5. Social media marketing<\/span><\/a><\/li>\n
  6. Robo-advisors<\/span><\/a><\/li>\n<\/ol>\n
    \n

    Even though it’s just the second quarter of 2021, some clear investment management trends are already emerging. Although many of these trends have been influenced by the events of 2020, they are likely to have an impact on the future of the investment client experience for the foreseeable future.<\/span><\/p>\n

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    \n\t\t\t\t\t\"Engage\t\t\t\t<\/div>\n
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    \nEngage the next generation of investors by becoming their trusted advisor. Here\u2019s how<\/h3>\n<\/p><\/div>\n
    \n\t\t\t\t\t\tLearn more<\/a>\n\t\t\t\t\t<\/div>\n<\/p><\/div>\n<\/p><\/div>\n

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    <\/a>Trend 1: Investment management continues to shift to the cloud<\/b><\/h2>\n

    Consultants at the\u00a0<\/span>Aite Group<\/span><\/a> have seen an increase in the use of cloud technologies in the investment management space. This trend stems from regulators\u2019 growing acceptance of the cloud as well as a string of successful deployments.<\/span><\/p>\n

    What use cases are a good fit for the cloud within an investment management firm? One use case is a cloud communications platform. We\u2019ll illustrate with a real-life example.<\/span><\/p>\n

    EP Wealth Advisors<\/span><\/a>, an investment advisory based in California, implemented RingCentral\u2019s cloud communications platform to improve client communication and internal collaboration. Clients can now quickly connect to their advisors, wherever they are, and all the advisors are using the same cloud communications platform, making it easier for the IT department to manage. The increased efficiency is saving the advisory 20 percent annually, and even better, features such as RingCentral’s cloud video conferencing service are helping the advisory in another essential way. Aaron Solorzano, IT Manager for EP Wealth, explains: “Robust webinar functionality helps us further cement the trust we are building with our clients.”<\/span><\/p>\n

    <\/a>Trend 2: Efficient client onboarding and communications<\/b><\/h3>\n

    Take a moment to think about how long it takes to onboard your clients. Maybe you don\u2019t have a specific timeframe in your head, but you know that it takes too long now. Research suggests that manual onboarding can take anywhere between\u00a0<\/span>two and 34 weeks<\/span><\/a> to initiate, and a\u00a0<\/span>Kofax report<\/span><\/a> says the average onboarding time for clients with high net worth is 41 days.<\/span><\/p>\n

    When you make client onboarding and communications more efficient, you improve the client experience. That’s a significant reason to invest in the right technology. A cloud communications platform plays a crucial role in the client onboarding and communications process; it enables you to reach out to clients easily, and it makes collaborating with others seamless so you can quickly onboard clients.<\/span><\/p>\n

    This is especially important at a time when many clients are engaging with their investment advisors virtually rather than in person. Virtually onboarding clients adds a layer of complexity to the process. It is not unusual for the advisor to need to communicate with the client, mid-office support staff, compliance personnel, and product experts as part of the onboarding process, especially when onboarding exceptions occur.<\/span><\/p>\n

    With the right cloud communication platform, these obstacles can be met head-on. For example, suppose an advisor is conducting a video meeting with a client as part of the onboarding process. If the advisor needs to quickly include someone from the mid-office staff in the meeting, it is easy to do with the right cloud communication system. Suppose the advisor wants to ensure that all disclosures are properly executed and all compliance regulations regarding the recording of client communications are met. That, too, is easily accomplished with the right communications platform.<\/span><\/p>\n

    <\/a>Trend 3: Advisors look at new client opportunities<\/b><\/h3>\n

    Client demographics are changing as Baby Boomers age and their Millennial children inherit their wealth. Yet, advisors can\u2019t rely upon their clients\u2019 children for their business. In fact, analysts estimate that anywhere from\u00a0<\/span>65 to 95% of clients\u2019 children<\/span><\/a> fire their parents\u2019 advisors because the advisors have never bothered forming a relationship with them. Advisors can\u2019t take it for granted that their clients\u2019 children will automatically do business with them because their parents did.<\/span><\/p>\n

    To forge a relationship with Millennials, advisors must understand Millennials\u2019 preferred communication channels. Research published by the\u00a0<\/span>Spectrem Group<\/span><\/a> in November 2020 revealed the following data:<\/span><\/p>\n