The U.S. wealth management industry has undergone a historic transformation over the past decade that has reshaped client expectations, investment flows and business models, according to a recent report from McKinsey & Co.
The transformation has been driven by the rise of digital technologies, the fastest interest rate cycle in four decades, fallout from the global pandemic, rapid advances in artificial intelligence and the early stages of the biggest intergenerational wealth transfer in history.
In the coming decade, demographic realignment, technological solutions and continued emphasis on trust and value will bring further change, altering how not only clients seek advice but also how they define "wealth."
McKinsey's report provides a forward-looking perspective on how this confluence of trends will affect the industry in the years ahead. It says wealth management firms must reimagine not only how they operate but what they offer, and to whom. They will have to rethink how they are organized and wired, and how they go to market.
See the gallery for 11 of McKinsey's predictions for the state of wealth management in 10 years' time.
— Katie Rass contributed to this article.
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