Uncertainty drives unsettling change in investor behaviour, finds new Ernst & Young report.
As investors look to weather the storm of unprecedented levels of global uncertainty, their behaviour is shifting towards active management and emerging FinTech solutions. According to a recent report by EY Global Wealth, the storm-battered investing landscape is prompting a shift in demand for active wealth management and FinTech solutions as volatility rises.
The report, which reflects findings from a 2023 global survey of 1,500 participants, reveals how covid-19 is accelerating a new behavior in the wealth management space. The findings reveal how investors are responding to the increased uncertainty, and how their approaches to investing have adapted.
The survey revealed that almost half of respondents with investable assets greater than $500,000 believe the financial markets are still in a state of flux when it comes to risk and volatility. This heightened sense of uncertainty has encouraged many to shrug off traditional wealth management in favour of technological alternatives that offer greater transparency and control. The report suggests these new digital solutions have taken on an increasingly important role in helping investors manage their portfolios.
The report also found that investors are turning away from traditional wealth management to actively manage their portfolios. More than 45% of investors are now taking a more active role in monitoring and managing their investments, either through online tools or through a financial advisor.
Furthermore, the report suggests many investors are now turning to FinTech solutions as a means of access to more innovative and transparent products, with 33% of respondents identifying FinTech as their primary source of wisdom and guidance when making financial decisions.
The report paints an unclear picture of the future of wealth management and investing. However, it’s clear that investors are increasingly seeking to take a more active role in their portfolios while leveraging the technological advances advancements of emerging FinTech solutions.
In conclusion, the report’s findings suggest that as investors seek to navigate increased levels of volatility and risk, they are showing an increased willingness to use FinTech solutions and actively manage their portfolios. As the industry continues to be rocked by global uncertainty, wealth managers will need to adapt to this ever-changing landscape and its expectations to remain competitive.