thewealthnet

Editor’s corner: The rise of the snowflake

Katie Royals, 03/12/2021

This week I have woken up to snow on the ground twice already. These cold, frosty mornings feel indicative of the ominous news reports we are greeted with each day. Somewhat devoid of child-like Christmas magic, snowflakes now often have negative connotations.

The word has become an almost derogatory term in recent years, generally used in reference to young people being overly sensitive and being too easily offended.

However, the wealth management industry should not be afraid of snowflakes. In fact, embracing snowflakes could help the sector thrive in the coming years.

It is believed no two snowflakes are the same. They are all unique. In many ways this makes it an accurate description for the next generation. Acutely aware of their differences, the next generation does not just accept diversity in all forms, it celebrates it.

Diversity and Inclusion (D&I) is becoming an increasingly important part of the conversation in the private wealth sector.

It was a pleasant surprise to see wealth management firms feature in the Social Mobility Foundation’s fifth annual Employer Index.

Goldman Sachs (49), abrdn (64), St James’s Place (66), and Schroders (71), all made the top 100.

For so long, the conversation focused largely on gender diversity. Although there is still work to be done in this regard, it is refreshing to see other forms of D&I being taken seriously by firms.

LGBT Great’s recent report highlighted the need for firms to focus more on gender identity diversity – an issue growing in importance among the next generation.

As client bases change, so too must employees, if firms plan on attracting and retaining new clients.

It is not just diversity of staff and clients the sector is concerned with. Increasingly, firms are focusing on diversity of offerings.

TEAM Asset Management made headlines in the financial press this week, having made its second acquisition in six months. This new wealth manager is actively targeting next generation clients and wants to stand out from more traditional firms. Its colour scheme is a striking lime green – something you will not see on many wealth managers’ websites.

TEAM is not alone in its bid to be unique.

thewealthnet spoke to St Gotthard Fund Management this week, a newly established Swiss wealth manager. Again, the firm is determined to be different and set itself apart from traditional private banks. Focusing on areas like cryptocurrencies and the onboarding process, St Gotthard believes it has a unique offering.

Meanwhile, private client law firms are also innovating in a bid to stand out. This week Ince announced it had launched an integrated private wealth offering to provide a range of legal and wealth advisory services and solutions for high-net-worth individuals, families, business owners and entrepreneurs with complex financial affairs.

Once viewed as an industry heavily resistant to change, it seems the wealth management sector can no longer be seen in that light and is fast evolving to keep pace with the ever changing world.

So perhaps this winter is the time to embrace the snowflake. Industry participants should be wary of underestimating its power – after all, it only takes a handful to shut down the whole UK for a few days.