Putting the Long-term back into Asset and Wealth Management

6 mins

A quick LLM* search tells us this about the Year of the Wood Dragon, which in Chinese astrology has just begun: “The year of the wood dragon symbolizes authority, prosperity, and good fortune. It is the perfect time for rejuvenated beginnings and setting the foundation for long-term success and prosperity.”

For those of us connected to the asset and wealth management industries (AWM), we should take heart. Now is the time to take a long-term perspective - exactly what we are always asking of others. Though headwinds will remain for industry players, we may outline several areas of opportunity to set a reliable foundation for future prosperity:

Longevity - due to advances in medical science and nutrition, life expectancy is increasing. This is clearly a positive, though not without implications for those in the AWM sector. Longevity and effective wealth planning go hand-in-hand, via automated, flexible solutions. Continuous innovation will be required in order to maximize the efficiency of wealth accumulation, adjust withdrawal rates to account for the extended time horizon and anticipate delayed intergenerational wealth transfer.

Changing Consumer - speaking of which, this transfer is nonetheless taking place. As wealth is passed down through generations, the focus may shift towards preservation and outsourcing to financial specialists, as opposed to a focus on growth-at-all-costs and dogged self-reliance. Integrated financial advice will become more important to these later generations, who are also more digitally aware, already embracing a significant amount of digitalization in their wealth journey.

Dash to Cash? - increasing volatility and geopolitical tensions makes it more challenging for AWM players to rely on rising financial markets to attract and retain their customers. The higher incidence of financial crises and the emergence of bubbles ultimately turns consumers away. Strategies that focus on long-term wealth accumulation and offer partial decorrelation from financial markets may be favored.

Margin Pressure - consolidation, regulatory transparency and the rise of passive investment have all put pressure on AWM business models in the last decade - in some cases, rightly so. With added scrutiny on the investment outcome and a longer time horizon, there is a need to balance profitability with value for money for the consumer. The answer? Differentiation and scale: digital platforms combined with carefully crafted artificial intelligence tools will be at the forefront of building true customer-centricity.

In this time of new beginnings, let Privé Technologies, with its end-to-end digital solutions for asset and wealth, partner with you to build this long-term foundation and focus.

For further details on Privé Technologies' award-winning solutions for asset, wealth managers and insurance companies, please visit and our dedicated LinkedIn page or email us at

[*] Large Language Model

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