openPR Logo
Press release

Francis Menassa, JAR Capital: Wealth 2.0: the future of wealth management

07-02-2019 11:55 AM CET | Business, Economy, Finances, Banking & Insurance

Press release from: JAR Capital

/ PR Agency: BDCenter
Francis Menassa, JAR Capital: Wealth 2.0: the future of wealth

No sector is immune to disruption and innovation has already started to reshape wealth management amid the growth of robo-advisers and new digital communication channels. However, in an industry where clients require a tailored and flexible approach, technology is complementary to wealth managers’ activity but cannot replace them since no algorithm is more powerful than trust. Wealth management remains foremost a people business.

I. Millennials and the Great Wealth Transfer

In the post-financial crisis landscape, wealth managers are facing profound changes in their market environment. A combination of fast developments in technology and competition from fintech players, a tighter regulatory context, ultra-low interest rates, more emphasis on socially responsible investing (SRI) are calling the traditional wealth management model into question. However, the single greatest shift I am witnessing right now is demographic. We’re on the cusp of the biggest wealth transfer in history. Research by Cerulli Associates forecasts that in the US alone, nearly 45 million households will transfer a total of U.S.$68.4 trillion in wealth to children and charity over the course of the next 25 years. Meanwhile, CBInsights predicts that by 2030, Millennials will control U.S.$20 trillion of assets globally and their parents (the baby boomers) will pass down another U.S.$30 trillion by 2050 in North America alone. The generational shift in wealth will impact the wealth management landscape over the next quarter century in an unprecedented way, since Digital Natives’ approach to wealth management differs greatly.

II. The need for a more client-centric approach

In some families I have been working with for generations, while the parents wanted everything on paper, their children use cloud storage, remote access and communicate via new channels such as WhatsApp. Having grown up with ubiquitous digital technology, Millennials are hyperconnected and demand more communication and transparency from their wealth manager, expecting the latter to be available 24/7. They live in a very competitive economic landscape, and therefore are more price-sensitive than their elders. Millennials are witnessing first-hand the deployment of a new wave of automation and robotisation spurred by the Fourth Industrial Revolution. Deloitte estimates that by 2025, over U.S.$16.0 trillion assets under management (AuM) could be managed with the support of robo-advisory services. A 2017 joint survey by EY and Finantix found that 71% of wealth managers believe clients are ready to take advice from robos. The fast development of Big data and Analytics will transform the sector: real-time information collected from a variety of sources and platforms, from social media to the sensors of smart homes and connected object, could be analysed to continually and automatically rebalance portfolios. Artificial Intelligence (AI) will be of great assistance in risk management and compliance, where it will automate data analysis, reduce the burden of administrative tasks and therefore allow humans to focus on higher value-add activities.

However, do not expect even the youngest clients to relinquish traditional media and face-to-face meetings. According to research by Deloitte, 82 percent of younger clients would appreciate more personal meetings with their investment adviser, showing that technology is not a substitute for personal interactions. Another notable difference compared to previous generations is Millennials’ ethics: 75 percent of them claim they want to remain ‘authentic’ and refuse to compromise family or personal values (Deloitte). In addition, almost two-thirds are not only concerned with the state of the world, but also feel obliged to change something, demonstrating that SRI investing has bright days ahead. This is a double whammy from our perspective since investing in sustainable and ethical assets offers another mechanism of due diligence. The other good news is the expansion of the Millennial market. The global volume of HNWI+ will increase by around 25% to almost U.S.$70 trillion by 2021, with demand stemming mainly from the US, China, Russia, Brazil and India, EY forecast in its 2018 Wealth Management Outlook. Many opportunities lie in this new distribution of wealth. Technology will undoubtedly assist and augment us. It is, however, just one part of the overall picture: many white spaces still need to be filled in the wealth management market.

JAR Capital
50 Jermyn Street
London SW1Y 6LX
United Kingdom
T: +44 (0) 20 3195 3020
F:+44 (0) 20 3195 3035

JAR Capital is an investment management company that offers wealth and asset management, direct investment, and advisory services for enterprises in the United Kingdom, Switzerland, and Gibraltar. The company has three international offices: JAR Capital Limited (UK), JAR Geneva SA (Switzerland), and JAR (Gibraltar) Limited. JAR Capital was founded by entrepreneur Francis Menassa in 2014 with headquarters in London, UK.

This release was published on openPR.

Permanent link to this press release:

Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release Francis Menassa, JAR Capital: Wealth 2.0: the future of wealth management here

News-ID: 1793798 • Views:

More Releases from JAR Capital

Francis Menassa, JAR Capital: Wealth 2.0 - will technology overhaul the wealth m …
No industry is immune to disruption and technology has already had a large impact on the wealth management industry. This is quite clear from the rapid growth of ‘robo-advisers’ in recent years, as well as the rise of new digital communication channels that now play an important role within the industry. However, within wealth management, technology is unlikely to replace humans completely as trust is paramount. Ultimately, wealth management is

More Releases for Wealth

Wealth Management Market is Gaining Momentum with key players Bajaj Capital, Cen …
The "Wealth Management - Market Analysis, Trends, and Forecasts 2014-2025 " Study has been added to HTF MI offering. The study focus on both qualitative as well as quantitative side and follows Industry benchmark and NAICS standards to built coverage of players for final compilation of study. Some of the major and emerging players profiled are Alpha Capital, Anand Rathi Wealth Services Limited, Bajaj Capital Limited, Centrum Wealth Management Limited,
Black Wealth Entertainment
LOS ANGELES, CA, January 21 — Today Black Wealth LLC announced that it has released new Black & Wealthy fashion line, which has sold over 1,000 pieces of apparel in the U.S as of midnight Wednesday, January 20th. These sales include women’s and mens clothing, apparel, and accessories. Black Wealth LLC also announced that they will be conducting a nationwide artist search for fresh new talent to add to their
Wealth Management Market in India 2020: Bajaj Capital Limited, IIFL Wealth Manag …
A new research document is added in HTF MI database of 54 pages, titled as 'Wealth Management Market in India 2020’ with detailed analysis, Competitive landscape, forecast and strategies. The study covers geographic analysis that includes regions like North America, Europe or Asia and important players/vendors such as Alpha Capital, Anand Rathi Wealth Services Limited, Bajaj Capital Limited, Centrum Wealth Management Limited, Edelweiss Asset Management Limited, IIFL Wealth Management Limited,
Wealth Management Market 2020 With Prime Countries Knowledge : World Trade Share …
The Global Wealth Management Market report mainly studies the size, recent trends and development status of the Wealth Management market, as well as investment opportunities, government policy, market dynamics (drivers, restraints, opportunities), supply chain and competitive landscape. Technological innovation and advancement will further optimize the performance of the product, making it more widely used in downstream applications. Moreover, Porter’s Five Forces Analysis (potential entrants, suppliers, substitutes, buyers, industry competitors) provides crucial information
Wealth in Canada: HNW Investors 2017, by Global Wealth Managers Survey
Market Research Hub (MRH) added a new research report to its vast database titled "Wealth in Canada: HNW Investors 2017", report analyzes the investing preferences and portfolio allocation of HNW Canadians. The report is based on our proprietary Global Wealth Managers Survey. Request Free Sample Report @ The HNW market in Canada is dominated by family business owners and expat clients drawn from Asia Pacific and the US. These busy owners
Sphinx Asia Wealth Management to Organize Islamic Wealth Management Conference
Press Release: Jakarta, July 11, 2011. Taipei, Taiwan based Sphinx Asia Wealth Management, is planning and organizing a Conference on Islamic Wealth Management here in Jakarta over two days; dates to be announced for September. Sphinx Asia announced today, in a Jakarta news conference, some of the details. Sphinx Asia is an international equity research and trading advisor and provider of specialized private client wealth management. The Company has been steadily