Innovation in Retail Wealth Management
Summary
This report provides a roundup of innovations within the global retail wealth management market, including subscription models, personalization, and offshore investments.
The number of retail investors grew substantially over the course of the pandemic, with the number of emerging affluent investors rising 18.2% in 2021 alone. Meanwhile, mass affluent investors increased by 8.8% year on year. The larger investor pool has spurred a renewed interest in serving the investment needs of consumers with modest portfolios. A number of fintechs and established wealth managers have rolled out new products, service models, and technology to economically address the investment needs of this growing investor class.
Scope
- 2022 global GDP growth has been revised down from 4.4% to 3.5%. Revisions of a similar magnitude preceded the 2008 and 2020 recessions.
- The subscription model truly arrived in wealth when Charles Schwab adopted it for Intelligent Portfolios Premium
The company’s hybrid robo-advice offering. - The beginnings of widespread customization of client portfolios was mainstreamed by the deployment of services from major online brokers such as TD Ameritrade.
- Understand the key technology, business models, and channels trends being used to reach out to retail investors.
- Access the latest consumer survey data on evolving channel behavior, provider preferences, and product holdings.
- Access firm-level/case study insights on leading players within retail wealth management.
- Market Overview
- Markets across the world are entering a cycle of slower economic growth
- Inflation fears have rattled stock markets across the globe
- Wealth markets will now see slower growth after exceptional pandemic growth
- Subscription Models
- Subscription services are increasingly targeting higher-value investors
- Saxo Markets brought subscriptions to the Singaporean investment brokerage market
- Citi Wrap aims to attract high-frequency investors with larger portfolios
- ESG Investing
- ESG concerns do not trump returns, except among Generation Z
- Platforms for direct ESG investments are raising the bar for engagement and impact
- Personalization
- Personalization is increasingly being extended to lower-value investors
- Personalization represents a strong draw in young, developing markets
- Schwab Personalized Indexing represents a modest start for direct indexing in the retail market
- Retail Alternatives
- Equity crowdfunding is growing as a way of connecting with young investors
- Masterworks provides securitized artwork for retail and accredited investors
- Birchal allows consumers to invest in the brands they love
- Offshore Investments
- Moomoo is aiming to be an international equities platform
- Key takeaways
- Appendix
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