NEWS

Significant fortunes in Europe are in the process of changing hands – from older generations to younger ones. For wealth managers, technology and data are becoming increasingly important to attract clients and outperform competitors.

"It's about turning data into value," says Magnus Lindelöf, Product Area Manager for Portfolio and Trading Solutions at Infront.
 

In recent years, the capital and wealth management industry has experienced significant growth in Europe. At the same time, the digital transformation has brought technology closer to end-users, making it easier to make independent investment decisions.
 

"This, along with the good times, has made many feel like they're Warren Buffett. But it's easy to ride on a multi-year bull market. The market is no longer as buoyant, and more and more people will realise the value of having a professional manager to guide them," says Magnus.

New generation, new expectations

Simultaneously, a deeper shift is taking place that will impact the wealth management industry. As part of a natural generational shift, significant fortunes are being transferred from older individuals to younger ones, placing new demands on their wealth managers.
 

Young and digitally adept customers demand not only personal relationships with their advisors but also richer information and more control.
 

For instance, a whopping 78% of the millennial generation (born 1981-1996) believe that cutting-edge technology is very or extremely important when choosing wealth managers, according to a survey by consulting firm Gartner. For the post-war generation (born 1946 – 1964), the proportion is 38%.

Empowering professionals and customers

"At Infront, we aim to build tools that allow professional investors to create value for the end customer in this new environment," says Magnus.
 

These tools serve to facilitate the daily work of professional users and also enable reaching out to customers with relevant information through digital solutions and web-based tools.
 

"Customers expect this. They don't want to wait until they get home and log into their computers to check their portfolios or see if any interesting corporate events will occur tomorrow or how large the upcoming quarterly dividends will be. They want to have all this information at their fingertips on their mobile phones anytime, in a simple, quick, and understandable way."
 

Wealth managers use Infront's trading terminal to gain insights into market trends and investment opportunities. The system collects millions of data points daily, ranging from levels of gold reserves and oil production in different countries to central bank decisions, inflation indicators, real-time stock prices, and detailed data on individual companies.
 

"We cover a wide spectrum, making all this information easily comprehensible while providing users with tools to analyse the data, focus on relevant information, and make well-informed decisions quickly."
 

While certain regions like the Nordics have made strides in digitalisation, competition among players is fierce worldwide. Globally, wealth managers invest billions in technology and information each year. This figure has been on the rise, driven by a customer base that now expects digital tools and experiences.
 

"There are staggering sums in the market that wealth managers are competing for. Consulting firm Accenture estimates that wealthy European households hold nearly 14 trillion euros in bank accounts or cash instead of investing them. Even converting just one percent of that amount is significant."

Customisation is differentiation

He notes that wealth managers are currently working on differentiating themselves. One trend is moving towards holistic solutions, offering lifelong financial planning.
 

"To stand out as a wealth manager, you need a suite of tools tailored to your specific needs. You must be able to scale up and down, and not be restricted by solutions."
 

An important point he underlines is that it's not enough to have access to a multitude of data sources.
 

"While that is important in itself, what distinguishes you as a wealth manager is what you can do with the information, the conclusions you can draw, and how you can best present and disseminate your advice. We cover the entire chain, from ideas to the finished form and distribution. Not many can do that.”
 

Start now – Try Infront