Wealth management services are becoming more widespread than ever. Community banks have an excellent opportunity to promote their allocation and serving expertise to nurture the next generation of wealth clients. Technology forces change in wealth management trends toward the enhanced targeting of patrons, accelerated response to active investment markets and more democratic admission to investment selections once limited for the rich. Wealth management innovators will begin to see the competition heat up, from the aggregators and implementers of personal financial management tools to the “robo-advisors,” causing expenses to decline and accessibility to expand. The market is dynamic, and community and regional banks that invest in the business and cultivate profoundly skilled client-facing faculty will be positioned to prosper as the market continues to change.
- 48% of community bank executives say they have diversified significant income streams into wealth management to generate free income
- 32% of community bank executives believe that assets and wealth management will be among the three biggest drivers of near-term revenue growth.
- 3 million – 10.1 million people are millionaires in the United States
- 62 is the average age of a millionaire
Advancing banking technology enables more investment opportunities. Financial customers’ expectations regarding digital access are rising, which will continue to increase with the upcoming generations. According to Javelin Strategy & Research, wealthy customers are heavy users of digital banking. Smaller banks need to incubate millionaires, as asset and wealth management will be among the three biggest drivers of near-term revenue growth. FIS PACE Index™ Research determined that community and regional banks still have superiority over bigger banks when offering in-person service and some basic fundamentals of trusted relationships such as fairness and reliability. If smaller banks have competitive wealth management services, they have the circulation in place to retain more of their customers’ business.