Despite the success of this regional advice hub, advisers like Kane Leersen aren’t out to rule the world. Instead, they have an ambition to “grow by good” by serving the people that make up their local community.
Another significant recruit has joined the new venture, with ex-Mutual Trust family office adviser Angus Mann bringing a wealth of experience and a reputation for holistic client care to Viola Private Wealth.
Data and technology the key growth (and risk) areas for advice in 2025: EY
While the shift to artificial intelligence, better data integration and overall optimisation of technology in advice practices is predicted to be a growth driver in 2025, the same areas may also be the greatest source of risk according to prognostications from Rita Da Silva, Oceana wealth and asset management leader at professional services firm EY.
In a recent media note, Da Silva said it’s important at this juncture for firms to build “differentiated strategies” that set them apart in a competitive market. In order to keep pace with “increasing disruption and earnings pressure”, Da Silva explained, the intersection of technology and practice management will be one of the core areas of concern.
“Faced with continuing macro and market uncertainty, increasing disruption and growing earnings pressure, the industry will need to focus on several key areas in 2025 and beyond, including: data modernisation and the intelligent use of artificial intelligence; talent optimisation; better integration of in-house technology and external ecosystems; regulatory collaboration and innovation; and transparent leadership on sustainability,” the consultant said.
As expected, artificial intelligence promises to be an area that shows tremendous promise for advice firms that are savvy enough to embrace it. Despite the opportunity artificial advice presents, however, finding its best use case is a task yet to be mastered in the industry.
“Wealth and asset managers should be exploring and investing in technologies that integrate AI into their sales and distribution processes,” Da Silva said. “While AI has not yet had as much of an impact on the industry as anticipated, the excitement around these opportunities continues and 2025 may well be the year of disruption.”
And while firms are focusing on improving their operational capability and leveraging good technology to make their practice more efficient, this ambition needs to be tempered by an awareness that those same opportunities create openings for different risk sets, Da Silva explained.
“Specific product and regulatory developments are highlighting important risk factors for the wealth and asset management industry. Firms are likely to encounter significant risks in areas such as digital transformation, technological advancements and cybersecurity,” she said.
“Environmental, social and governance (ESG) factors also present a strategic and operational risk, arising from evolving regulatory and client reporting requirements, including challenges in data reliability.”
