The five trends that will set the course of Wealth Management in the coming years

Sergi Martín - Wealth Management

The onset of the pandemic has required the financial sector to revamp its business model and address new challenges. Vall Banc, a banking institution specialising in Wealth Management, sets out the most important keys to understanding the future of the business.

 

Escaldes-Engordany, 28 July 2021. The pandemic has accelerated digital transformation in all areas. In this regard, financial entities need to re-evaluate their business models, with technology and a commitment to their clients at the core of their adaptation to the new post-COVID-19 needs of consumers.

As a result of this situation, the Wealth Management service has become one that offers a large number of opportunities within the new context. The management of small and large individual and family assets has always been a critical task for everyone, but, due to the uncertainty arising from the pandemic, its importance has significantly increased.

Therefore, Vall Banc, an institution specialising in Wealth Management, analyses five key trends related to the new challenges facing the sector:

 

  1. The need to digitalise

It’s a fact that the digital revolution has to be applied to all sectors and companies. The case of Wealth Management is no different. The use of Big Data and Artificial Intelligence (AI) brings great benefits in terms of operational efficiency, time and cost savings, customised and comprehensive solutions, scalability and automation.

“The cutting-edge technology for the analysis and construction of optimal investment portfolios facilitates the simulation of dozens of macroeconomic, geopolitical and market-based scenarios, enabling us to calibrate hundreds of risk factors in our selection of assets. This leads to more robust construction of the portfolio that’s better-suited to the client’s needs”, explains Sergi Martín, Business Director at Vall Banc.

 

  1. The key role of the advisor

Active and empathetic listening is essential in ensuring an understanding and in-depth analysis of the clients’ personal, family and professional situation. Their individual circumstances are all different, which means that the solutions offered by banking entities must be different too. “Beginning with a clear understanding of the starting point enables us to properly define the objectives and, subsequently, the strategies that will bring us closer to these particular needs”, emphasised Martín emphasises.

 

 

To achieve success, the advisor’s role must be complementary to that of technology. His/her function is to translate the data and metrics generated by technology into understandable language. It’s therefore essential to create a customer service tandem whereby the advisor views technology as a key companion so as to enhance and differentiate it, not replace it.

 

  1. The client, at centre stage

The winning Wealth Management policy focuses solely on the client, providing tailored solutions from a 360-degree perspective. The decisions people make throughout their lives also have consequences for their financial activity. This is why it’s important to develop an equity strategy that goes beyond conventional financial asset management, taking into account all the aspects that influence it.

“Our value proposition involves analysing our clients’ personal and family situation and their ambitions and obligations, and then drawing up a plan adapted to realistic goals by means of a process of selecting and optimising the assets that will shape their portfolios”, declared Martín.

 

  1. Focus on sustainability

More and more investors are becoming aware of the impact their actions have, demanding the introduction of the sustainable variable as a significant factor in their decision-making processes. In fact, according to a study drawn up by SpainSIF, sustainable investment has grown by 36% in Spain and now totals 284 billion euros. It’s therefore crucial for banks to incorporate technological resources and tools to gauge the improvement in the environment and society that their investment decisions will entail.

One good example is Vall Banc, Andorra’s pioneering banking institution in the use of the Clarity AI tool, a leading technological platform for analysing in minute detail the social and environmental impact of investments. These solutions can obtain ESG (Environmental, Social and Corporate governance) ratings for a wide range of financial assets in an efficient and scalable manner.

 

  1. Data means transparency

The current uncertain situation has highlighted the need to receive timely and relevant information that’s practical to apply and based on real-time data analysis. Having direct access to data and insights related to current trends is a distinctive element for investors when it comes to making decisions.

“Gaining the client’s trust while achieving the expected results and being transparent throughout the process of supporting him/her is vital. In accordance with this maxim of transparency, drawing up in-depth and understandable follow-up reports on our clients’ investments is imperative”, added Martín.

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