According to an official report titled ‘Challenges in the banking industry', the industrialization of services has helped to automate the banking activities to some extent. The increasing role of marketing banking services, ATMs and security measures accelerated the turnover of CRO's (Customer relationship officers) which is often perceived by customers as a downfall of relationship and consultation services offered by banks. The economic and financial crisis has caused a concern among the general public, and further more has hampered the confidence of the investors and customers. Banks and financial institutions are trying to redefine the existing economic environment and the role of wealth management consultants in order to restore the customers' confidence.
[...] To increase transparency, wealth management companies must create financial awareness to improve the relationship between the bank and the customer. The increasing sophistication of financial products was not accompanied by a comparable increase in the knowledge of individuals in financial matters. Regular monitoring of the clients is important for implementation of a clear communication process. Another major issue as noted above is to improve communication on products and services. This could go through greater proximity between the advisor and client. [...]
[...] The regulatory framework has initially been considered as a disadvantage because it requires them to meet a number of conditions which is not the case for customer advisors in banks who are not subject to such formalities. However, they now see the existing regulations as a means of demonstrating the seriousness and credibility of their profession. Thus, the regulation provides guarantee of security and confidence to their customers. Conclusion The current economic conditions have eroded the investors' sentiment and prompted what might be considered as a crisis of confidence in the financial sector and particularly in the banking and wealth management sectors. As a result of this, new participants have emerged on this attractive market [...]
[...] In order to avoid huge economic and financial losses, the economies have tried to restore confidence through bailout programs. B. Loss of confidence in the banking system Moreover, the financial scandals have largely contributed to the degradation of the image of banking and financial players, amplifying the reluctance of the general public towards this sector. Indeed, it measures confidence directly and quantitatively, by evaluating changes in high-risk securities in the portfolio by investors. C. The situation in the asset management sector Surprisingly, the results in 2008 have created mixed emotions for asset management companies. [...]
[...] The value of Independent Financial advisors is mainly their ability to provide their customers with the financial solutions that caters to their financial situation and does not depend on other networks like agencies, financial intermediaries etc. The market for asset management is characterized by a strong attraction by investors, potential customers and even general onlookers. On the other side, new players are trying to make inroads into the market who at some point of time in the future can become serious competitors. B. Wealth management: The challenges As we have seen, the image of the banking sector deteriorated significantly in recent years. Obviously, the area of wealth management is not immune to this trend. [...]
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