A survey of wealth management and private banking executives done last year by Deloitte and the European Financial Management Association (EFMA) pointed to the need for a reinvention of the core service model of the industry. The study found “an increasing evolution toward a model where the wealth manager and the client work together,” requiring greater transparency, reporting and accountability. In other words, the study went on, “enabling self-management and allowing clients to play an active role in managing their wealth is becoming increasingly important.”
Wealth managers may be well advised to more fully embrace this new paradigm as the global economy adapts to a Trump presidency. While markets at least in the U.S. appear to have managed the initial shock, uncertainty remains regarding the impact of Trump’s policies on investment portfolios in the longer term. As with any changeover in leadership, there is uncertainty regarding policy imperatives, the timing of their implementation, and their broader economic ramifications. Wealth clients will need greater advice and reassurance well beyond inauguration as they navigate new and uncharted waters.
While challenging for the advisor, this new reality offers opportunity as well. Whether calming client fears with a “stay the course” strategy or helping to identify promising new opportunities in a shifting market, advisors can assume a more supportive and proactive role in their clients’ investment lives. They can potentially add greater value over time, deepen and cement relationships and add stability and longevity to their client base.