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Gyros Chrysoulis (Einvestment) on How has Covid-19 Impacted Wealth Managment Industry?
Author: Gyros Chrysoulis, Managing Director of EInvestment Company
With the coronavirus still spreading in the US, Brazil, and other regions of the world, the global economy has taken a sharp nosedive, the likes of which haven’t been seen since the Great Depression. During such uncertain times, it is crucial that you stay informed about economic trends and navigate such changes to stay focused on your long-term wealth management goals.
How COVID-19 Is Ushering In the 4th Industrial Revolution
If you find yourself growing dismayed over the current state of affairs and what it could mean for the wealth management industry, let me ease your concerns. The economy will recover; it just takes time. In fact, COVID-19 might end up ushering us further into the Fourth Industrial Revolution – a time in which smart technologies and AI have a role in every industry.
Already you can see changes starting to be made – for example, many companies choosing to allow their employees to work remotely even after the pandemic has subsided. Having the option to work from home vastly improves the quality of many lives. In the short run, people who continue to work from home are likely to have a high level of education and are employed in the real estate, management, finance, IT, and professional services sectors.
These industries will thrive as companies explore their options and see how technology can enhance their productivity, profits, and employee satisfaction.
How Wealth Management Is Currently Being Affected
Even though the global economy will eventually recover and soar to new heights, what about the here and now? Here are a few trends that our expert analysts have noticed:
Long-Term Perspective: the impact of COVID-19 will fade over time, and the economy will stabilize. In past recessions, and currently, experience investors choose to take a measured, long-term approach rather than panicking. They understand that their investment portfolios will benefit over time from a long-term approach.
Robo-Advisors: While Robo-advisors have been providing algorithm-driven finance expertise for several years, more and more such platforms are popping up. A Robo-advisor will usually have investors answer a few questions in order to determine their ideal risk and then use their programmed algorithm to spread money across an array of investments. As the investor’s situation changes, or as the market fluctuates, the Robo-advisor will automatically make adjustments.
Goals-Based Planning: COVID-19, and other factors that drastically impact the economy in a negative fashion, highlights the importance of planning investments based on goals. This kind of planning protects investors from any fallout resulting from such economic shocks.
Shift of Asset Allocation to the Short-Term Perspective: Investors are starting to move their assets away from the riskiest investments in order to avoid downside risk. Once the market recovers, these investors might consider returning to equities in order to take advantage of market gains.
Communication: Wealth management firms, such as Einvestment, have been doing their utmost to provide clear communication to clients and help them navigate such uncertain times. Advisors are able to work with their clients and help prevent any knee-jerk reactions that could offset the investor’s years of hard work.
Predictions Regarding the Recovery Process
As COVID-19 fades away, the wealth management industry will need to take many steps in order to return to normal as soon as possible. Such steps could include:
Improving relationships with customers and possibly restructuring fees
Using analytics to determine customer expectations and fine-tune products to meet those needs
Upscaling and upgrading digital channels since branches have been closed down
Reducing the workforce if the COVID-19 stretches out for an extended period of time
Creating an industry focus on retirement planning, protection of investments, and the planning of digital estates
Reprioritizing capital allocation plans
Building contingency plans for if such massive social disruptions occur again
What Can You Do?
Managing your wealth during COVID-19 doesn’t have to be an intimidating ordeal. Here at Einvestment, our team of personal finance experts can help you invest your money and earn high-interest returns in the long run. We offer you a liferaft of stability during uncertain times by providing a robust, technology-driven investment platform, expert opinions, and transparent data.
About the author: Gyros Chrysoulis, Managing Director of Einvestment, has extensive experience in onshore and offshore financial services, as well as a robust background of regulatory compliance and corporate governance. His mastery of wealth and asset management, in addition to his leadership skills, allows him to build meaningful relationships with his clients and team members.
This article does not necessarily reflect the opinions of the editors or management of EconoTimes