Due to their operating costs, traditionally, Wealth Managers have been reluctant to take on potential customers who have lower, and in many cases, no investment portfolios. Several of the biggest names in the sector, including the likes of St James’s Place, and UBS, will only work with those who have high incomes or a considerable amount of money saved (liquidity to invest). Some of the more elite brands, such as Coutts and, in particular, Rothschild & Co, require a minimum in excess of £1 million before they will even consider offering their services to you, making them unobtainable for the majority of society.

While these eye-watering figures have undoubtedly contributed to the $476 billion valuation of the Wealth sector, the unattainability aspect of many prominent firms has significantly contributed to the perception that Wealth Management is only for the affluent.

Wealth companies without an established brand name – as well as those who are aggressively looking to grow their business – need to think differently in order to attract customers. Growth-hungry firms need to engage with prospective investors and convince them that investing in your future is something for everyone, not just those with a high salary or considerably high-value assets.

Not only has the traditional target audience for Wealth Management changed, but so too has the source of financial advice.

Every Wealth Manager knows that forming relationships and trust are the foundation to gaining and keeping clients. However, platforms such as TikTok, Instagram and other forms of social media have become the main sources of knowledge for the new generation of investors. This is one of the reasons more and more Wealth Management firms are using paid advertising through these channels (Instagram in particular). Interestingly, although Wealth Managers understand the relevance of exploiting these channels they also need to apply the future investor mindset and behavioural traits when engaging with these audiences on their own wealth platforms. Digital first tools on investor/investing education; risk assessment and properly thought-out robo-advisor engagement are needed.

The role of the influencer should also not be overlooked – increasingly, modern audiences are building relationships with influencers such as Martin Lewis and Clare Seal, who have seemingly replaced paternalistic institutions such as bank managers or independent financial advisers.

If Wealth Management wants to market itself to the masses, rather than the affluent few, it needs to change. Finding new ways to nurture and engage with potential clients and move away from investable thresholds that are so high only a few can join their exclusive club.

The financial landscape has changed, and it’s time that Wealth Management adapts to the new reality.

Following the pandemic, the way in which clients wish to be served has fundamentally changed. While Wealth Management bosses began to embrace digital tech during the pandemic, compared to the rapidly evolving FinTech sector the speed of adoption of new technology in the Wealth industry is considerably pedestrian, with a continued over-reliance on a traditional managed relationship or an advised approach.

As highlighted by the global management firm McKinsey & Company, omnichannel access is no longer just a nice to have. Much like Insurance, the Wealth industry has been somewhat slow to adapt to technology, despite the fact that there has been a sharp acceleration of digital adoption across several consumer segments.

As mentioned above, Wealth brands that are looking to grow need to find ways to showcase their value to potential customers and help to change the narrative that forms when we think of Wealth Management.

One of the ways in which these growing firms can help to change perception is through the embedding of their services into the average person’s lifestyle and the journey that life takes them on.

Partnering with schools and other education providers to improve financial capability and education is one of the many ways that Wealth Managers can help to change attitudes towards the sector. Good financial education, including learning how to budget and manage your future income, provides young children with the ability to better understand the value and role that money has, allowing them to make more conscious money-making decisions in the future. Budgeting is a life skill that will prove vital for years to come. Those that don’t learn how to budget effectively will be unable to spare funds and consider investing.

Along with schools, Wealth Managers should consider partnering with businesses and, by extension, their employees. Doing so will allow companies in the Wealth industry to showcase their value while offering services that match the needs of the employees of the partnered business. For example, if an employee were to get a pay rise, there should be an option available to the employee to speak with, and invest a portion of the rise with, a Wealth Manager.

In addition to promoting their services to employees, Wealth Management can also look to offer their services as part of a value-add package to a partnered business’s customers as well. For instance, if you were to go to an estate agent, the agency can offer to help you look at your cash flow planning to see what you can afford.