The financial sector in 2030

Via Business Insider:

…two 2030 growth scenarios. The first is the "continued growth in the wealth management business" that is "driven by independent advisors, online tools and advice companies, and emerging international markets." The financial industry will have consolidated through mergers and acquisitions. The second sees the industry lose the trust of consumers, prompting them to turn to a self-service model that excludes "advisors and major financial institutions."

Click the link to see more: FINANCIAL ADVISOR INSIGHTS: October 25 - Business Insider

Points:

• Trends: “1. Increased expectation for a fiduciary standard. 2. Shrinking pool of advisors that has to deal with "intergenerational transfer of wealth." 3. The growth of "women as a major market" when women advisors market up only 30% of the industry. 70% of widows change financial advisors within a year of their husbands' deaths. 4. Increasing social diversity. 5. Changing technology.”
• Possible outcomes: “1. "Leading fee-based financial advisors increasingly will dominate the market. 2. "Retail banks will continue to lose power." 3. "Wirehouses will embrace the fee-based channel and direct resources into acquisition and organic growth of registered investment advisors." 4 "Direct distribution models are also likely to grow as consumers continue to embrace technology to help them meet their financial services needs."