The wealth management industry of 25 years ago probably wouldn’t recognize the industry of today.
In 1994, exchange-traded funds were just a year old and collectively held just $100 million in assets. Equity and fixed income trades settled in five days. Financial plans came from human beings and consisted of spreadsheets and Microsoft Word documents. Cash transactions were processed manually. Just 16 million people used the internet.
Fast forward to today. More than $4.5 trillion of assets are held in ETFs. Trading settlement is down to two days. Investment advice and allocations are made by advisors — both human and digital advice solutions — that have transformed how investment accounts are opened, managed and tracked.
At the heart of these changes are technology and data. Financial technology has pushed wave after wave of change in the last quarter century. Here’s what the next 25 years will hold.
Same Money, Younger Wallets
The next generation of wealth is coming of age as baby boomers shift billions to younger generations, namely Generation X, who are already amassing significant savings of their own.