Wealth Management Trends 2022

November 30, 2021 - Stephen Van de Wetering

Stacked Coins

The wealth management trends for 2022 show the old way of doing things no longer apply.

COVID-19 changed things so much, and while the world tries to create a new normal, the effects of the pandemic continue to influence the way wealth managers do business.

2022 and beyond will bring new challenges, but there are opportunities for those who adjust and adapt.

12 Wealth Management Trends for 2022

1. COVID Variants Bring Stock Market Uncertainty

Thank goodness for the vaccines, but new variants could limit their effectiveness, especially as most of the world is still unvaccinated.

We saw Delta last summer, and now the world is watching Omicron. Omicron has already spooked investors and sent jitters through the markets, and the variant is now in the US.

A resurging virus could lead to more lockdowns and reduced economic activity, which hurts the markets and client’s investment portfolios.

The markets may very well recover, but if newer and more dangerous variants emerge, uncertainty will remain.

2. Flat, Average Stock Performance Projections in 2022

Though nothing is certain, a growing number of experts and analysts predict a “less bullish outlook” compared to 2021.

According to Savita Subramanian, Head of US Equity & Quantitative Strategy at Bank of America, the S&P 500 is poised to end 2022 about flat compared to 2021 levels.

There are four major reasons for this potential scenario:

There are indeed more bullish projections, like JPMorgan’s, but given the above scenarios, there are many factors that can hurt corporate earnings, impacting growth outlooks and bottom lines.  

3. Hedge Against Inflation – Investment Strategies

Of course, wealth managers need to diversify and hedge against inflation. Public equity investments alone may not be enough, though certain sectors will perform well. There are many strategies to take, and here a few considerations:


Energy has been the best-performing sector in 2021. That said, energy is prone to boom-and-bust cycles. As we’re in an inflationary period, this is when the sector typically shines.


Because of the pandemic, governments around the world have printed more money to stimulate their economies. The US is no exception, and inflation is at its highest level in 30 years.

Gold holds its value pretty well in times like this, so having gold part of your clients’ portfolios isn’t a bad idea.

Real Estate

Historically, owning property is one of the single greatest contributors to building wealth over the long term.

And with more money in circulation, investors look for a place to hedge against inflation. Inflation makes real estate attractive for three reasons:

This Forbes article explains in greater detail the value of real estate as a hedge against inflation.

As mentioned above, these are just a few considerations. You can take a look at these other assets to protect against inflation.

4. The Rise of Private Equity in Wealth Management

Private equity investing is no longer just for large institutional investors.

Private equity firms recognize there’s so much capital out there (trillions) left on the table, and more and more PE firms are marketing themselves to attract that capital.

Smaller- and medium-sized wealth managers will have more opportunity to invest in PE, as private investments have outperformed their public counterparts.

Check out our recent post on the rise in private equity investing for wealth managers.

5. Cryptocurrency, Digital Assets Part of a Wealth Management Portfolio

Still a relative newcomer, cryptocurrency is a growing investment option.

According to a survey from the University of Chicago, 13% of Americans have purchased or traded cryptocurrencies over a 12-month period, compared with 24% who trade stocks.

And it’s harder and harder for wealth advisors to avoid this conversation with clients.  A survey from the Financial Planning Association and Journal of Financial Planning revealed the following: 49% of advisors said clients have asked about cryptocurrencies in the first 6 months of 2021, up from 17% in 2020.

What’s more, 26% of advisors plan to increase how much they use and recommend cryptocurrencies in the next 12 months (June 2021 – June 2022).

This surely presents an opportunity for wealth advisors who are willing and open to exploring.

Of course, It’s not without risk (what isn’t?). But as crypto continues its mainstream trajectory, exploring digital assets is less and less a far-fetched idea.

“I did [cryptocurrency investing] because I saw how active the Federal Reserve was and how much they were diluting the dollar.”


“Folks are realizing now that [cryptocurrency investing] is not going away.”

Tyrone ross, ceo of onramp invest

6. Fee Compression Continues

The downward pressure on fees continues, hitting new record lows.

Larger competitors like BlackRock and Vanguard are cutting their fees, putting pressure on smaller asset and wealth managers alike.

While bigger firms can withstand lower fees due to their sheer size and growth of clientele, smaller organizations do not have that luxury.

Responding to increased competition and fee compression will be an important area of focus on wealth management trends, mentioned in sections below.

7. Hybrid Work a Permanent Fixture in Wealth Management Work Culture

RIA Hiring_Desk and Laptop

Don’t expect things to be like they were pre-pandemic.

Thanks to vaccines, employees can return to the office in some capacity, but they will expect the option for remote work.

Since March 2020, the transition from office to home has been a success, a PwC report illustrated.  More than 70% of financial services employers surveyed found work-from-home to be successful or very successful.

Employees are less tolerant than ever of commuting to and from an office, as shown in many cases the work can be done just as well at home.

That’s not to say in-person meetings and collaboration are not important. They are very much important, but is it 5 days a week important? Probably not.

If you can save your clients the time and money not having to commute to and from work, you will do them a lot of favors. Not offering a hybrid work environment will be a hindrance to attracting new talent.

The other question is, do you need all that office space? One of our earlier posts discusses the topic of office space for RIAs.

8. Focus on ESG

Over the last 2 years, it seems like there has been a “crisis” in all areas: public health, social, political, economic, and environmental.

With that, there’s a growing consciousness among wealth managers and clients alike that they cannot stand idly by anymore.

Clients want investments that reflect their values, and they want to invest in companies that contribute to positive outcomes.

In addition, an Accenture survey found that 71% of investors want to engage with an advisor whose values are aligned with their own.

ESG isn’t just a “fad.” ESG is a real wealth management trend with staying power, and it is big business.

Sustainable investing now accounts for 35.9% of assets under management in the US, Canada, Japan, Australasia, and Europe, up from 33.4% in 2018.

9. Generational Wealth Transfers

For the last few years, there has been talk about the “Great Wealth Transfer.”

Year by year, it comes ever closer.

The Baby Boomer generation, roughly defined as those born between the mid-1940s and mid-1960s, will soon retire in ever larger numbers. 

As that happens, they will pass on wealth to children and grandchildren, collectively amounting to $30 trillion.

Wealth advisors need to think about their older clientele: when are they passing wealth and assets to beneficiaries? Who will the beneficiaries decide to manage their newly inherited money?

Wealth management firms should think about how to ways to keep the business of the older clients’ beneficiary family members.

To learn more, check out one of our posts on how wealth managers can attract millennial clients.

Washington Capitol

Wealth Transfer Under a Biden Administration

A year into office, the Biden administration and Democrats have sights set on some of these areas:

Depending on what legislation gets passed and when it takes effect, that may influence when and how your wealth management clients transfer assets.

10. More Advisory Firms, Fewer Winners

There are now over 13,500 registered investment advisors in the United States, an increase of nearly 10% since 2017.

In spite of the growth in wealth and the demand for talent, there is another challenge in that a disproportionate amount of assets could be concentrated in the hands of fewer advisors.

With growing competition and an increasingly digital atmosphere, wealth managers must adapt technologically to stay ahead.

Good marketing, sales, and networking are also important. Check out some of our recent content around these topics:

11. Older Advisors Planning to Retire

About 40% of financial advisors plan to retire within 10 years, according to CNBC. In fact, there are more certified planners over the age of 70 than there are under 30.

For business owners close to retirement, they should think about succession planning for their business, as well as attracting new talent. 

This includes outreach to college students, in particular women and minorities who are currently underrepresented in the investment industry. Expanding and cultivating the talent base is a win for all wealth management firms. 

12. Personalized Wealth Management Services; Leveraging Technology

The great wealth management companies know how to tailor the client experience, making optimal use of human capital and technology.

Furthermore, the call for digital adoption among wealth managing firms is nothing new. It’s a message loudly proclaimed even before the pandemic.

Candice Carlton, senior vice president of adviser education at FiComm Partners, stated it best as quoted in this InvestmentNews article

“To stay relevant, it is critical that the adviser of today stay connected in a high-touch, digitally enhanced way to drive loyalty, trust and wallet share. Clients now expect their advisers to add value beyond the traditional financial plan and twice a year in-person meeting…  advisers need help in learning how to adopt and use modern communication mediums to supercharge their prospect and client experience.”

AI & Robotic Process Automation

As wealth management competition intensifies, moving fast in an efficient manner is more than ever.

New technology is making it possible to do more in less time and with fewer resources.

Artificial intelligence (AI) is one of the tools to help. Machine learning can help wealth managers recognize patterns, anticipate future events, create rules, make good decisions, and communicate with others.

AI is big business. The global AI software market is projected to grow rapidly in the coming years, reaching USD $126 billion by 2025.

And by 2024, 75% of organizations will shift from piloting to operationalizing artificial intelligence, according to Gartner.

Despite the known benefits, just one-third of wealth managers in North America are currently scaling AI across their businesses.

“The findings suggest that although wealth managers are eager to embrace AI, they largely haven’t been able to move beyond experimentation toward widespread organizational application at scale. They also appear to underestimate the long-term value of AI, coupled with data and analytics, to reinvent the client experience and empower advisors to have more personalized client conversations and sell the right products at the right moments in their clients’ lives.”

Scott Reddel, Managing Director of Capital Markets & Wealth Management at Accenture

To learn more about AI use cases and benefits for investment managers, check out this Deloitte report.

While AI focuses on the independent learning of machines, Robotic Process Automation (RPA) focuses on performing routine and predictable tasks.

Repeatable steps like downloading statements, storing files, and emailing reports can be done through RPA. In fact, has Empaxis has developed tools to help in these areas, helping investment firms of all kinds.

Broadridge survey revealed that 57% of financial firms have long-term plans to increase automation through RPA and AI.

Data & Analytics

Data Integration

We live in a data-driven world.

In an increasingly competitive space, wealth managers need accurate, up-to-date information to allow for faster decision-making

Having the means to aggregate data and see it in a nice, clean and customizable format is indeed helpful.

And it’s not just for the wealth managers; it’s for their clients, too. Clients across all age ranges are coming to expect modern fintech from their advisors.

Even older clients that generally shunned new technology are now opening to it, given the importance of protecting their health during the pandemic.

Clients should have easy and instant access to their portfolio details, via cloud-based technology.

It’s to a point where these features are no longer just nice additions; they are necessities.

Good data is a significant part of a firm’s credibility. Having the right data management and portfolio management platforms like TAMP1 can help.


Being an expert at everything is not easy, nor is it necessary.

Wealth management executives and their staff should focus on what they do best: investing and client servicing.

Admin and operational work are important, but they’re not the main reasons for going into business. 

For anything that is non-core and a cost of doing business, it can be outsourced.

Fidelity survey on outsourcing for wealth managers shows just the value that can be had from leveraging third parties. In short, those who outsourced were more likely to report a growth in clients and larger AUM.

The Next Step for Wealth Managers

The recent wealth management trends show opportunities and challenges facing the industry, and firms should look at the trends to develop a strategy around an investing, operations, technology, client servicing, etc.

The lingering presence of COVID-19 will continue having a significant impact on the way the wealth managers run their businesses, and their strategies should take into account the memories and lessons learned from the pandemic.

Despite the challenges, there is nonetheless opportunity out there for wealth managers; they just have to prepare and position themselves accordingly.

Empaxis is a leading provider of operational and technology solutions for wealth managers, helping them increase efficiency and scale while cutting costs. Looking to improve your organization? We can help.

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