Post the global financial crisis, wealth and investment management entities were confronted with industrywide changes that were shaping the new normal. Factors defining this new ‘normal’ granted a number of organisations with the opportunity to reduce costs and allowed businesses to reposition themselves within the industry. Though managers were faced with the challenge of rebuilding trust among stakeholders, several organisations encountered essential changes that produced opportunities for both growth and amalgamation. Never before has the wealth and investment management trade been under such immense scrutiny and the focus of so much change.
Over the years, individuals have searched for means to improve their long-term quality of life. However, a number of people confused the concept of wealth with investing. In actuality, individual concepts of wealth and investment involve a different way of thinking and embody different lifestyles as well as value of life goals. In order to lead a sound and satisfied life, people need to have a complete understanding about wealth and investment. Essentially, investment refers to the process of investing money for a profit while wealth management refers to overall optimisation. Wealth management is not merely about investment. It requires professional knowledge and expertise. Wealth management also takes into account a number of dynamics such as age, lifestyle and physical condition. Although wealth management targets certain demographics, overall fortune is unbiased. During her presentation at the Wealth Management Conference, Nataliya Vovchuk, Head of ACCA Ukraine, Baltic and Caucasus States, stated that ‘wealth management usually goes with long-term well-planned investment.’
The global financial meltdown forced individuals and entities alike to form a solid foundation for a brighter future. The challenges of today’s fast-moving wealth and investment management market create massive prospects for organisations that can constantly provide superior and cost-effective customer service. Cited from the Integrated Approach (Gaining Competitive Advantage in Wealth Management) report, Accenture believe that the ‘ideal relationship management solution for wealth management incorporates the following elements:
- Client management tools such as contact management, client data aggregation and customer insight delivery
- Advice and investment engines supporting the needs assessment and financial planning process
- Execution and monitoring of financial transactions agreed upon with the client, including internal and third-party transactions
- Client accounting and reporting on portfolio and performance data
- Compliance and risk management engines to confirm that transaction activity complies with client instructions and risk tolerance
- Advisor performance management to track financial advisor performance against sales goals, commissions and other rewards, and established service levels’
Comprehensive, tailored wealth management is created upon long-term investment goals. A number of South Africa’s reputable financial institutions give advice to notable families, charities, trusts and foundations in the accumulation and preservation of their wealth. Their areas of expertise include asset management, stock broking and alternative investment solutions. Building wealth isn’t easy. However, wealth and investment management can provide South Africans with essential means of possessing fortune and living a meaningful, secure and productive life.