Wealth management is facing significant disruption on two fronts – customer experience and digital transformation. To effectively succeed within these turbulent times, understanding client demographics and expectations is essential. Firms can leverage deep customer insights to grasp their clients’ changing ethos and develop solutions accordingly. Improved customer satisfaction often drives competitive advantage. As firms prioritize superior customer experience, they are adopting intelligent solutions such as analysis of consumer sentiments to deliver hyper-personalized services. Firms are also leveraging artificial intelligence (AI) and machine learning (ML) techniques to improve client-advisor relationships. To innovate, especially within legacy infrastructures, organizations must embrace open APIs to scale technology capability with support from WealthTech newcomers and third-party vendors that offer generic and customizable API-based platforms. Regulations such as the EU’s General Data Protection Regulation (GDPR) and know your customer (KYC) mandates are pushing firms to ramp up cybersecurity and automate cumbersome client onboarding processes, in a data-driven compliance scenario.

1. Top Trends in Wealth
Management: 2020
December 2019
Link: https://www.capgemini.com/top-
trends-in-2020/

2. 2© Capgemini 2019. All rights reserved |Wealth Management Trends 2020 | December 2019
Top Trends in Wealth Management for 2020 by Capgemini
Open APIs APIs foster innovation and create new channels of growth for wealth management firmsTREND 7
Data-driven
compliance
Information security continues to be a prime concern for wealth management firmsTREND 8
Artificial intelligence simplifies client onboarding and KYC processesTREND 9
Deep
customer
insights
Omnichannel offerings are essential for seamless customer engagementTREND 3
Sustainable investing is redefining asset managementTREND 1
Demographic shift spurs firms to maximize intergenerational wealth transfer opportunitiesTREND 2
Hyper-personalized services can be a key differentiator for wealth firms in the new eraTREND 4
Intelligent
solution
Firms consider AI solutions to enhance advisor effectiveness, improve client satisfactionTREND 6
Emotional analytics can personalize the client experienceTREND 5

3. 3© Capgemini 2019. All rights reserved |Wealth Management Trends 2020 | December 2019
Source: Capgemini Financial Services Analysis, 2019
Trend 1: Sustainable investing is redefining asset management
Sustainable investing
(SI) is gaining
mindshare among
wealth managers and
investors to foster
mainstream
momentum.
Top Trends in Wealth Management for 2020 by Capgemini Open APIs
Data-driven
compliance
Deep customer
insights
Intelligent
solution
Demand from customers
Lower market risks and improving returns
Regulations mandate
3© Capgemini 2019. All rights reserved |

4. 4© Capgemini 2019. All rights reserved |Wealth Management Trends 2020 | December 2019
Trend 2: Demographic shift spurs firms to maximize intergenerational wealth
transfer opportunities
Source: Capgemini Financial Services Analysis, 2019
New
investing
models
Digital
investments
Emotional
connect in
client-advisor
relationship
Customer-
centric
approach
As the number of HNW millennials and women increases, wealth management firms need to reinvent their
offerings and customer relationship management.
Top Trends in Wealth Management for 2020 by Capgemini Open APIs
Data-driven
compliance
Deep customer
insights
Intelligent
solution

5. 5© Capgemini 2019. All rights reserved |Wealth Management Trends 2020 | December 2019
Trend 3: Omnichannel offerings are essential for seamless customer engagement
Source: Capgemini Financial Services Analysis, 2019
Collaborative with vendors for developing
multi-channel capability.
Consistent with interfaces for enhancing
experiences.
Consolidated with customer data for
insights gathering.
5© Capgemini 2019. All rights reserved |
With the rapid growth of digitalized models, wealth
management firms are at the forefront of offering
experiences instead of selling products.
Top Trends in Wealth Management for 2020 by Capgemini Open APIs
Data-driven
compliance
Deep customer
insights
Intelligent
solution

6. 6© Capgemini 2019. All rights reserved |Wealth Management Trends 2020 | December 2019
Source: Capgemini Financial Services Analysis, 2019
Trend 4: Hyper-personalized services can be a key differentiator for wealth firms in the
new era
6© Capgemini 2019. All rights reserved |
Low personal connection
Regulatory compliance
Digital disruption
FinTechs and BigTechs
Success for wealth management firms and managers will depend on the capability to leverage AI and real-time data to
deliver more relevant content, products, and service to investors by capturing in-depth customer insights.
Top Trends in Wealth Management for 2020 by Capgemini Open APIs
Data-driven
compliance
Deep customer
insights
Intelligent
solution

7. 7© Capgemini 2019. All rights reserved |Wealth Management Trends 2020 | December 2019
Trend 5: Emotional analytics can personalize the client experience
Source: Capgemini Financial Services Analysis, 2019
Behavioral assessment
Virtual assistant
Conversation enabler
Sentiment analysis
7© Capgemini 2019. All rights reserved |
Top Trends in Wealth Management for 2020 by Capgemini Open APIs
Data-driven
compliance
Deep customer
insights
Intelligent
solution

8. 8© Capgemini 2019. All rights reserved |Wealth Management Trends 2020 | December 2019
Trend 6: Firms consider AI solutions to enhance advisor effectiveness,
improve client satisfaction
Source: Capgemini Financial Services Analysis, 2019
8© Capgemini 2019. All rights reserved |
Some wealth
management
firms are
experimenting
with AI to
understand its
potential and
limitations
regarding current
and future
business models
Non-traditional players
Changing HNWI behavior and preferences
Rising data sets
Top Trends in Wealth Management for 2020 by Capgemini Open APIs
Data-driven
compliance
Deep customer
insights
Intelligent
solution

9. 9© Capgemini 2019. All rights reserved |Wealth Management Trends 2020 | December 2019
Trend 7: APIs foster innovation and create new channels of growth for wealth
management firms
Source: Capgemini Financial Services Analysis, 2019
9© Capgemini 2019. All rights reserved |
WealthTech Wealth Management
Firms
Investors/Customers
 E2E API solutions
 Access to financial data
 Collaboration and
partnerships
 Scaling up technology
 Reduced costs
 New offerings
 Customer centricity
 Ease of use
 Better experience
 Customized products
Wealth Management Trends 2020 | December 2019
Top Trends in Wealth Management for 2020 by Capgemini Open APIs
Data-driven
compliance
Deep customer
insights
Intelligent
solution

10. 10© Capgemini 2019. All rights reserved |Wealth Management Trends 2020 | December 2019
Trend 8: Information security continues to be a prime concern for wealth
management firms
Source: Capgemini Financial Services Analysis, 2019
10© Capgemini 2019. All rights reserved |
Re-skill existing staff and acquire new talent astute in cyber-
security specific sub-domains.
Set up adaptive, change-management processes and frameworks
to manage data-driven compliance requirements.
Collaborate effectively with digital security vendors/solution
providers to fill product gaps.
Invest in AI, ML and cloud infrastructure to improve threat
management and secure data storage.
Amid apprehension about increasing cyber-attacks and growing data security compliance requirements,
cybersecurity remains a concern for wealth management firms.
Top Trends in Wealth Management for 2020 by Capgemini Open APIs
Data-driven
compliance
Deep customer
insights
Intelligent
solution

11. 11© Capgemini 2019. All rights reserved |Wealth Management Trends 2020 | December 2019
Trend 9: Artificial intelligence simplifies client onboarding and KYC processes
Source: Capgemini Financial Services Analysis, 2019
11© Capgemini 2019. All rights reserved |
Optimize talent, reduce manpower costs
Faster and more accurate data processing
Integrate onboarding modules seamlessly
Enrich customer experiences
Top Trends in Wealth Management for 2020 by Capgemini Open APIs
Data-driven
compliance
Deep customer
insights
Intelligent
solution

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