Wealth Adviser Newsletter 09.09.22

Thinking outside of the box

This week Russell Andrews, SEI's Global Head of Advice Solutions, talked to Wealth Adviser about his concerns that as adviser technology continues to evolve and grow, it might not factor in to emotional, cognitive and behavioural engagements.
"A theme that has been growing in my mind over the last few months is that as financial adviser firms continue to scale up, it is a real challenge to move beyond 1.0 implementation," Andrews says. "I have a growing concern that traditional wealth managers will come under a lot of pressure because consumers are now dominating the definition of value and see the value of experience and not the transactional outcome."
He also observes that lots of firms will run into difficulties as wealth transitions generations and have more interest in ESG and digital investments, two themes that have dominated the investment world over the last few years.
"Technology is there to help but I don’t see enough expression of that in the bigger firms," Andrews says.
We also saw research from Barclays Wealth this week which revealed that as the eldest millennials turn 40-years-old, their parents are considering gifting them inheritance early to increase support for their living costs this year.
With the Bank of England warning inflation could tip 13 per cent by the end of 2022, over a third (37 per cent) of parents of 40-year-old millennials now anticipate gifting inheritance this year to help their children more with immediate living costs, as opposed to bigger purchases like property. The research showed that almost two in five (38 per cent) parents also expect to be more flexible in their support across the rest of this year, giving money early when needed rather than planning ahead.
Beverly Chandler, managing editor, ETF Express
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