Partner Content by LinkedIn

How wealth management can futureproof itself

LinkedIn research uncovers the opportunity for advisers who connect with people on the subjects that matter most.

Distinguishing between investment fads and genuine trends is not always easy, especially when it comes to investing. New ideas and concepts frequently enter the market – some manage to stick around for the long term; others prove nothing more than a flash in the pan.

The most recent high-profile investment trends are cryptocurrency and sustainable investing – two vastly different concepts but both enjoying booms worldwide. Yet despite their growing popularity, many expect demand for these strategies will eventually fade away.

Regardless of whether emerging investment products stay for the long haul, keeping in-step with customer preferences is key for wealth managers when constructing marketing strategies. And it’s not just about the products and services offered; they must also use appropriate channels to communicate with their customers.

The digital age is playing a leading role in how people are choosing to interact with their finances, with professional networks such as LinkedIn proving particularly popular.

Wealth managers who recognise this will be best placed to stand out from their peers. With some $30 trillion globally set to pass through generations over the coming decades as part of “the great wealth transfer,” the use of technology to make vital and lasting client connections cannot be understated.

What do investors want from wealth managers?

This assertion was underscored in some research LinkedIn conducted recently. We wanted to uncover what services people want from wealth managers in 2022. Strikingly, we found more than a third (38%) of retail investors are considering changing their financial adviser before the end of September, highlighting the pitfalls of failing to cater to investor demand.

Though mainstays of the wealth management sector, such as estate and tax planning, still top the list of investor priorities, the research also unearthed some emerging themes. Two of these were indeed ESG and crypto, but we also uncovered growing appetite for other financial products such as ETFs.

Few investment trends in the past couple of decades have captured the imagination of investors like ESG, rising from a niche pursuit to a mainstream offering. And this trend is showing little sign of abating, with increasing numbers of investors seeking to align their investment portfolios with their personal values.

This is presenting wealth managers with a sizeable opportunity to add value to their clients. Despite its growing appeal, still only around one-third of investors in Europe, Middle East and Africa include ESG-focused solutions within their portfolios. Our research findings chime with this. We found that 19% of investors are looking for more guidance and advice around ESG and sustainability. 

Growing investor awareness and appetite around ESG must be complemented with more focussed marketing campaigns. It is becoming apparent that sustainability means different things to different people, and so personalisation of this content is key.

This is not solely a demographic trend, but age appears to be a factor here. In other research, we found that Generation Z, classified as those born in the mid-to-late 90s, tend to have a high aptitude for social awareness, with three in 10 saying they care about politics and social issues. This increasing regard for eco-consciousness and social equality, is putting extra pressure on companies to lead the charge when fighting widespread ESG issues.