A new research report by PAM Insight, commissioned by Guernsey Finance, examines the way in which service providers will need to adapt to ensure they are one step ahead of changing families in a changing world.
The report focuses on evolving private client trends, including increasingly global families, attitudes towards sustainability, being a ‘good global citizen’, and technology and digital assets.
Katie Royals, Managing Editor of PAM Insight, said: “As significant wealth transfers take place amid sweeping societal changes, approaches to wealth management are shifting at a rapid rate.
“Although specific changes in aims and requirements will differ depending on the client, there are clearly identifiable trends that can be used to highlight common challenges facing the sector.”
Primary wealth management considerations for under 35s include: greater focus on sustainable and impact investments, greater interest in digital assets, and popularity of digital platforms.
Being a good global citizen was also highlighted, with 86% of respondents marking it as important (35%) or very important (51%) for under 35s.
Political stability remained the most important factor when choosing a jurisdiction.
So, how does the industry need to adapt to meet the needs of these wealth holders?
Respondents cited three main themes: a greater adoption of technology (29%), more sustainable investment opportunities (24%), and a more diverse workforce (17%).
The report demonstrates that the desire for the industry to change is there, and that wealth advisers are engaged in the evolving market trends. Sustainable product offerings become ever more important, as does technology and digital assets as under 35s become the primary wealth holders.
Rupert Pleasant, Chief Executive of Guernsey Finance, said: “With the needs of private clients and families continually evolving, it is ever more important to understand how attitudes shift in light of economic headwinds, changing cultural dynamics, and the climate crisis.
“This report makes essential reading for private wealth service providers, who need to ensure they are one step ahead of current trends to understand how best they can serve their clients.
“Guernsey service providers, with an extensive five-decade history of servicing private clients, are well-equipped to deal with the trends and challenges that come with our rapidly changing landscape.”
The report was launched at the Guernsey Private Wealth Forum 2023, which took place on 2 November at Landing Forty Two, the Leadenhall Building, London.
Read the full report: https://www.weareguernsey.com/literature/managing-changing-families/
