When we published the Top Trends in Wealth Management 2020, little did we foresee the pandemic that would sweep through the world and disrupt life as we knew it. Yet, when we reviewed last year’s trends, we found that many still hold and some have taken on even greater relevance. One such trend is sustainable investing, which had begun to gain prominence as investors became more aware of ESG considerations, and firms rolled out more sustainable investing offerings. Another trend that has accelerated in the post-COVID world is the importance of investing in omnichannel capabilities and technologies such as artificial intelligence (AI) to enhance personalization and advisor effectiveness. The pandemic has driven wealth management firms to accelerate their digital transformation journey, with some immediate focus areas being interactive client communications and digital advisor tools. There is no denying that time is of the essence. Yes, budgets are tight, but the Open X ecosystem offers wealth management firms opportunities to reimagine their operating models and deliver excellent customer experience cost-effectively.

1. Top Trends in Wealth
Management: 2021
November 2020
Link: https://www.capgemini.com/top-trends-in-2020/

2. 2© Capgemini 2020. All rights reserved |Wealth Management Trends 2021 | November 2020
Top Trends in Wealth Management for 2021 by Capgemini
 The new market share battle may be decided by
innovative fee structures
 WM firms and WealthTechs go beyond investment
advice to deepen client relationships
 Ecosystem collaboration illuminates the path to
capability building and profitable growth
 The new normal requires next-gen client reporting
 Alternative data sources and real-time data are
rewriting the investment playbook
 Technology-driven hyper-personalization will be
critical for loyalty and growth
 Amid revenue and margin pressures, underserved
segments offer growth potential
 Pandemic is an eye opener for digital
transformation laggards
 As sustainable investing inches toward the
mainstream, a holistic approach is needed
Business
Resilience
Customer
Centricity
Intelligent
Processes
Go-to-Market
Agility
Open
Ecosystem

3. 3© Capgemini 2020. All rights reserved |Wealth Management Trends 2021 | November 2020
Trend 1: Pandemic is an eye-opener for digital transformation laggards
Source: Capgemini Financial Services Analysis, 2020
Top Trends in Wealth Management for 2021 by Capgemini
COVID-19 made the value of digital channels and capabilities crystal clear,
spurring wealth executives to prioritize digital transformation
Cloud
Chatbots
Touchless
authentication
Advanced
data analytics
Intelligent
automation
Digital
onboarding
How are firms
prioritizing
their digital
transformation
investments?

4. 4© Capgemini 2020. All rights reserved |Wealth Management Trends 2021 | November 2020
Trend 2: As sustainable investing inches toward the mainstream, a holistic approach is needed
Source: Capgemini Financial Services Analysis, 2020
Top Trends in Wealth Management for 2021 by Capgemini
Regulation
Amid inconsistent disclosures, misleading information
about companies’ positive environmental impact
(greenwashing), and no recognized framework, it is
likely that a push for regulation will drive global
sustainability standards
Capabilities
Advisors need capabilities to determine precise
client portfolio ESG scores to recommend products
that align with client preferences and risk appetite
Data
Clients are demanding more data
around sustainability for comprehensive
investment decision making
While SI was gaining ground even before COVID-19 (a 2020 wealth trend), the pandemic accelerated
the movement, forcing WM firms to build capabilities to meet rising demands
Sustainable investing is
becoming more popular,
and favorable policies
toward companies that
practice social and
environmental goodwill
may continue to attract
investments long after the
pandemic

5. 5© Capgemini 2020. All rights reserved |Wealth Management Trends 2021 | November 2020
Trend 3: Technology-driven hyper-personalization will be critical for loyalty and growth
Source: Capgemini Financial Services Analysis, 2020
5© Capgemini 2020. All rights reserved |
Top Trends in Wealth Management for 2021 by Capgemini
Behavioral sciences and sentiment analysis are
new tools to identify a client’s risk profile versus
close-enough categorization based on 5 or 6
pre-defined risk templates
A comprehensive view of the client is possible
through APIs
Data analytics provide personalized portfolio
aggregation and reporting
Data analytics and machine learning can be
leveraged to assess trading history and create
personalized portfolios
Artificial intelligence can interpret a client’s
reaction to market performance so that advise may
be personalized to address concerns, investment
appetite
AI-based analytics tools can be used to assess a
client’s past data to calculate appropriate financial
recommendations
Portfolio aggregation and reporting Customized advice
Personalized client dashboard Made-to-order product recommendations
Bespoke risk profiles Individualized portfolio construction
Hyper-
personalized
offerings
Hyper-personalized offerings will help wealth firms address evolving HNWI expectations and
lock in high-potential customer segments at crucial transition points

6. 6© Capgemini 2020. All rights reserved |Wealth Management Trends 2021 | November 2020
Trend 4: Amid revenue and margin pressures, underserved segments offer growth potential
Top Trends in Wealth Management for 2021 by Capgemini
WM firms can unleash new revenue streams by meeting the unique needs and preferences of
women and the mass-affluent segment
41.7% 44.8%
22.0% 17.8%
18.8% 21.6%
11.9% 11.8%
5.6% 4.0%
0%
25%
50%
75%
100%
Female HNWIs Male HNWIs
PercentageofAssets(%)
Exploring new investment
avenues
Diversifying risk in my
investments
Growing my wealth
Maximizing investment returns
Preserving my wealth
WM firms can tap a significant growth opportunity by proactively
engaging with women and mass affluent investors
Source: Capgemini Financial Services Analysis, 2020; International Adviser, March 9, 2020; American Banker, April 15, 2019.
60% of the UK’s wealth will be in women's
hands by 2025, according to the Centre for
Economics and Business Research (CEBR)
In the United States, the mass-affluent market
holds around USD9 trillion in assets across
more than 20 million households
HNWI women have different investment objectives compared with
their male counterparts in a gloomy economic scenario

7. 7© Capgemini 2020. All rights reserved |Wealth Management Trends 2021 | November 2020
Trend 5: The new normal requires next-gen client reporting
7© Capgemini 2020. All rights reserved |
Top Trends in Wealth Management for 2021 by Capgemini
Today’s clients want easy, dynamic access to information.
Leading-edge and interactive client reporting can help firms boost client engagement
Why invest
in next-gen
client
reporting?
2
5
4
3
6
1
Clients increasingly demand
self-service tools
Client expectations
up thanks to the
high CX bar set by
other service
providers (Netflix,
Amazon, Google, etc.)
Regulatory pressure
Cutting-edge technology at
a mass scale is now feasible
Existing reporting
tools cannot meet
clients’ increasing
demands
Client reporting is a critical enabler
for advisors
Source: Capgemini Financial Services Analysis, 2020

8. 8© Capgemini 2020. All rights reserved |Wealth Management Trends 2021 | November 2020
Trend 6: Alternative data sources and real-time data are rewriting the investment playbook
Source: Capgemini Financial Services Analysis, 2020
8© Capgemini 2020. All rights reserved |
Top Trends in Wealth Management for 2021 by Capgemini
Data from alternative sources is paving the future path of trading and investment analysis
Consumer sentiment revealed via social
media can help wealth managers optimize
investment and trading advice
Satellite images offer
insights such as the number
of cars in a retail store
parking lot to the efficiency
of a solar panel
Consumer lifestyle data
covers credit cards
payments, transactions
information
Location and foot-traffic data,
local prices, and weather to
forecast interest rates and
consumer spending
Equity and
fundamental economic
data from various
buy-side participants Alternative
data sets
Social
media
sentiment
data
Satellite
& drone
data
Consumer
spending
data
Business
performance
metrics
Data
sourced
from expert
networks

9. 9© Capgemini 2020. All rights reserved |Wealth Management Trends 2021 | November 2020
Open innovation is a step in the right direction
Trend 7: The new market share battle may be decided by innovative fee structures
Source: Capgemini Financial Services Analysis, 2020
9© Capgemini 2020. All rights reserved |
Top Trends in Wealth Management for 2021 by Capgemini
FinTechs make investing accessible to a broader base of affluent
clients by reducing complexities and lowering fees
WM firms are considering robo advice models with tiered and
subscription-based fee structures to attract new client segments
In response to fee structure disruption sparked by FinTech innovation in wealth management, big firms devise
strategies to attract digitally-savvy HNWIs ‒ as margin and revenue pressures mount

10. 10© Capgemini 2020. All rights reserved |Wealth Management Trends 2021 | November 2020
Trend 8: WM firms, WealthTechs augment investment advice to deepen client relationships
Source: Capgemini Financial Services Analysis, 2020
Top Trends in Wealth Management for 2021 by Capgemini
Holistic financial support helps wealth firms personalize
CX and bolster relevance across multiple scenarios
Value-added services
Other financial services
 Morgan Stanley launched
P&C insurance to recognize
emerging risks are as much
a threat to individual net
worth as volatile markets
 WealthTech firms are
offering cash-management
solutions
 Real estate investment
advice
 Tax planning
 Legal consultation
 Inheritance advice
 Concierge services
Wealth management and WealthTech firms are expanding services to offer
holistic financial support through value-added services and new products

11. 11© Capgemini 2020. All rights reserved |Wealth Management Trends 2021 | November 2020
Trend 9: Ecosystem collaboration illuminates path to capability building, profitable growth
Source: Capgemini Financial Services Analysis, 2020
Top Trends in Wealth Management for 2021 by Capgemini
Helps firms boost must-have
digital capabilities that enable
superior service delivery
Enables expansion to
new markets and
customer segments
Adopting WealthTech solutions
can save money in onboarding,
compliance, and more
Open X
collaboration
Wealth management firms are exploring Open X collaboration to boost capabilities, expand reach, and
achieve cost efficiencies

12. 12© Capgemini 2020. All rights reserved |Wealth Management Trends 2021 | November 2020
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