Seismic report looks at the evolving state of wealth management

Our beloved baby boomer generation is getting up there, and that means the Great Wealth Transfer is already happening. Wealth management firms are preparing for a new generation of clients; they might be the kids of boomers (if they can hold on to their business) or an entirely new cohort looking for a trusted advisor. Regardless, they might be a little distrusting of Wall Street and the financial services industry (trying to get a job after ’08 wasn’t easy).

A new report from sales enablement platform Seismic, partnering with Insights for Professionals, looks at the state of wealth management in North America. The headline: $124 trillion in assets is set to change hands over the next two decades, and $72 trillion of that going directly to heirs (many of them millennials).

The report shows 91% of firms “feel at least somewhat prepared” for the change, with more than half of those firms (54%) saying they’re “very prepared” because they’ve been shifting their approach to “align with the needs and preferences of a younger, digitally-native generation.”

Only 9% indicated they’ve minimally prepared, illustrating that most firms are on the right track to meet the needs of their new clientele.

Digital first

As firms are gearing up to cater to a more digitally-savvy bunch, there are several challenges they’re facing. Nearly half (44%) say their biggest challenge is the inability to deliver personalized, timely communications. This is followed by 40% who say they have difficulty in tracking digital engagement and results.

Other challenges include disconnected tools (38%), too many manual processes (34%), siloed platforms preventing a seamless client journey (32%), lack of feedback loops (31%), outdated or inflexible legacy systems (24%), difficulty attracting and retaining skilled advisors (19%), and compliance or regulatory constraints (12%).

The concern around clunky legacy systems hindering client-facing pros jives with our reporting here at Revenue Brew: Disconnected tools, workflow bottlenecks, and siloed teams are perhaps the most pertinent and recurring issues we observe in rev orgs.

The report suggests that opportunities to modernize and innovate can address these challenges. Those surveyed said the biggest opportunities to do so are expanding digital onboarding and self-service options (44%), using data analytics for continuous improvement (40%), providing AI-powered tools and insights for advisors (39%), improving engagement and performance visibility (36%), supporting advisors with targeted coaching (35%), automating and personalizing communications (24%), integrating sustainability into investment offerings (16%), and unifying content across teams and platforms (10%).

AI effectiveness

As AI tools become an organizational mainstay, it’s no surprise they can improve effectiveness. The report shows that 92% of firms say their AI capabilities are “moderately effective,” while 54% say they’re “very effective.”

Investment in AI is expected to keep increasing: Almost all (99%) of firms said they are either “likely or very likely” to invest in AI capabilities over the next 12 to 18 months.

“AI investment is no longer a differentiator on its own—execution is,” said Kerry Ryan, senior director of financial services industry marketing at Seismic, in an email statement to Revenue Brew. “By embedding AI into core workflows, firms can elevate advisor expertise, create more capacity for the moments that matter, and unlock a new level of client impact and business growth. This is the moment to fully embrace AI as a source of durable competitive advantage.”