The 2024 projections highlight an intricate interplay between geopolitical developments, investor mindsets, technological advances, and strategic changes in wealth management techniques. This paves the way for an exciting and transformative year in the business.
Fremont, CA: The year 2024 represents a lively future. Everyone involved in wealth, investment, and related technology—including investors, financial service firms, investment managers, startup entrepreneurs, WealthTech experts, and independent experts—must reflect on their specific context and environment and chart a suitable course for 2024. Here are some forecasts for wealth management and financial trends that will shape the coming year and beyond.
Global Geopolitical Shifts
Geopolitically, the Global South will diverge significantly from the Western world by 2024, influencing investment flows and plans. Economic and geopolitical factors will progressively reflect this trend, causing investors to reconsider old Western-centric investment models in favor of more diverse methods, i.e., a tilt toward investments in the Global South. Geopolitical tensions can exacerbate supply chain issues for commodities and raw resources, complicating investment strategies in this changing market.
Evolving Investor Mindsets
As traditional financial institutions confront growing disillusionment, the investor environment will significantly transition in 2024. Investors report a tangible gap and diminishing faith in conventional banks and financial advisors, leading to a substantial opinion shift.
Investors are seeking more control and exploring new options. They are growing more price-sensitive, shifting from passive to active techniques, seeking second opinions and reevaluating assets.
This increased attentiveness reflects a growing mindset among ultra- and high-net-worth individuals, family offices, and affluent investors, emphasizing autonomy and active participation in designing future investment plans. This transformation will impact not only strategy but also the rise of alternative financial service providers, including non-banks and maybe even DeFi concepts.
Prioritizing Corporate Financial Wellbeing
Corporate financial wellbeing, an increasing priority area, will be central to workplace strategies. Recognizing the inherent link between economic wellbeing and productivity, businesses will prioritize employee financial wellness efforts to boost workplace productivity and overall organizational performance.
Persistence of Independent Financial Guidance
The altering investor mindset and expanded investment alternatives are driving the need for independent financial guidance. Beyond typical banking institutions, investors seek individualized, unbiased counsel emphasizing bespoke advisory services to align decisions with their financial goals.
This trend emphasizes the value of proper customer focus for established and developing firms. Hybrid service models could thrive as they evolve from existing transactional platforms. The transition from product-centric to customer-centric consulting techniques is critical.
Success is dependent on user experience design, advisor empowerment, and the availability of self-service holistic guidance platforms. These platforms cater to a broader audience by providing self-service capabilities that work alongside investing platforms for managers.
