Author: Prospectacy Business Services Team

Wealth management is a complex industry that is currently facing numerous trends, challenges and disruptions,
including technological advancements, ultra-high-net-worth individuals and growing compliance costs.
New technologies, fee structures and the entry of bigtechs are influencing the industry like never before. As the
industry evolves, wealth managers must stay ahead of the curve in order to remain attractive to their customers.
The key to the success of any wealth management firm lies in building trust and maintaining long-standing
relationships. With more solutions than ever before, this is becoming increasingly challenging, particularly in a
world where customers are setting the pace and engaging in multiple ways through technology.

Wealth Management: Preparing for the Future

Over the next few years, the speed of change in the wealth management industry is likely to continue to increase.
As millennials begin to gain control over the world’s most significant assets, the wealth management industry
needs to be fully prepared to appeal to this new breed of investor and cater to their every need.

Technology Enablement

Multichannel communication is essential for attracting, retaining and serving clients – as well as the generations
that follow.

To remain competitive, wealth managers must have access to state-of-the-art digital tools in order to organise,
analyse and use customer data in the most seamless way possible. Wealth managers must also be able to offer
an intuitive and multifaceted mobile experience, as well as access to websites, apps and communities.
The process of signing up new accounts or processes must be easy and fast, while information must be
accessible anytime and from any device. Further, they must have the technological capabilities to refine the client
experience and help customers stay informed about their investments.

Personalisation

A new trend in personalisation is being experienced thanks to ever-increasing customer expectations combined
with technological capabilities and solutions.

According to Capgemini’s World Wealth Report, 86% of high-net-worth clients want personalised offerings. As
such, as the industry evolves, role of the wealth manager must be to maintain and nurture individual relationships
while offering expert guidance, long-term financial planning strategies and tailor-made investment solutions.
Wealth managers will need to offer an effortless service, not just on a remote level but on a personal level too. The
entire human experience – throughout the customer’s lifecycle– will need to be exceptional in order for the
customer to remain loyal.

Thanks to evolutions in analytics, data gathering, decision-making and delivery, wealth managers will be able to
create the most personalised, contextualised and dynamic experience for the individual client.

Sustainable Investment

Finally, sustainable investment, which uses environmental, social and governance (ESG) factors, is becoming
increasingly prominent amongst socially and environmentally-conscious investors (particularly millennials). As
such, wealth management firms will need to pay close attention to sustainable investments that integrate ESG
elements if they wish to remain competitive and attractive to modern investors.

At Prospectacy, our main objective is to deliver the best possible wealth management services
that match your corporate or individual needs. By following the global trends, and continuously
updating our technological infrastructure, we strive to maintain the highest standards of wealth
management services.

Prospectacy’s wealth management services include (but are certainly not limited to):

• Investment advice
• Portfolio management
• International taxation and compliance support

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Since the global economic crisis of 2008, the developed world has observed an unexpected period of low-interest rates. Interest rates are directed by a nation’s or a union’s central bank and are considered as a primary tool of monetary policy, that encourages employment, investments and therefore inflation levels.

Economists call a balanced interest rate price, a neutral interest rate. This ideal rate is effective when and if the economy is developing normally and the inflation rate is stable. Over the past decade, however, this neutral interest rate has been steadily declining especially within countries of the globe considered developed. This decline in interest rates can be attributed both to the level of demand and to the supply offered in this economic structure.

On the side of supply,a significant number of investors exist who have savings, and would like to invest these savings safely for the long term. From a demographic point of view, most societies are aging and prefer to accrue money in order to receive interest after retirement.

On the side of demand, governments, corporations, and individuals exist who need cash loans. With the onset of the technological boom in the 21st century, it is obvious that large corporations such as Microsoft, Google, Facebook and Apple, which do not have huge investments in fixed assets, do not need large loans in order to receive additional income, so the demand for capital loans declines.

Governments seek to pursue an aggressive borrowing policy during recessions, but the last recession has been around for a long time. As a result, a decrease in demand for loans and an increase in demand for savings (loans) is seen. Thus, allowing no balance between supply and demand.

In the past, central banks set neutral interest rates based on how the economy behaved and the active indicators of supply and demand. Central banks widely used two indicators in order to decide how fair the neutral interest rate was – the level of unemployment and inflation.

If the inflation rate was too high, the aim was to reduce the demand for loans by raising interest rates. If unemployment was high, interest rates were decreased to encourage a credit system and help increase spending and create new jobs.

This has worked over the years, yet a predicament arises – What happens if interest rates are already negative, and the Central Bank needs to lower them further in order to stimulate the economy and promote even greater volumes of borrowing? This will mean that lenders must issue loans at negative rates and receive negative returns on their investments.

Governments all over the world are increasingly involved in creating monetary policy and the role of the Central Banks as legislators of monetary policy is decreasing. If a new recession occurs, the Central Bank is limited in its selection of tools to maintain a balance in the economy. If negative rates remain, does this also limit economic balance?

Starting with an industry overview, casino itself is supposed to be a great opportunity for the market. Gambling industry in Cyprus attracts different levels of society because of its freedom to spend as little money as you want. Yet, what is the secret of online gambling success and its influence on the economy? There are some important issues concerning this. For a lot of people, online gambling brings some kind of freedom, where they are not limited to a certain amount of money and rules that real casinos have. It is safe to say that casino gaming license has put infrastructure in place to create a hospitable environment for the industry. Besides, the laws here grant to the gambling service providers the exclusive right to manage and control gambling services with high profits. On these issues, online gambling positively results on the economy bringing online gambling to a new level. Hence, online gambling industry has experienced a major shift in its key markets in Cyprus in the recent years. More specifically, the five-year period has signaled a shift of revenue growth in the gambling market.

At least, the online casino business requires an online gambling license which is an indicator of simplicity in business and security of the gaming software. Cyprus gaming industry is the best opportunity to network and drive the businesses forward through focused content and dynamic exhibitions. Moreover, Cyprus is a route to become the hub for the offline and online gaming industries. The gaming industry in Cyprus features interactive networking events, an extensive educational program, industry-specific conference streams and an impressive trade show floor. Also, Cyprus has become a regional gaming centre that licensed online casino gaming and betting exchanges. Due to this, today lots of people gamble millions of dollars. Coming up again to the question of industry enhancement and benefits, it can be constantly proven that up-to-date technology of online gambling allows entertainment to fit your rhythm and routine, and even more, they are a new option for the industry in Cyprus and an influential effect on the global economy. Online gambling saves a lot of time as you get your personal mobile casino in your pocket. Another huge advantage of online gambling is the ability to play against many opponents at one time, getting the results right away.

Actually, while new markets are opening up they are to acquire new sources of revenue and increasingly influence industry operators. The casino industry has the potential to create numerous jobs considering the number of individuals required. One of the most important factors is the economy beneficial laws which provide its strict regulation, control and supervision of the operation of betting shops used for the provision of gambling services, as well as for the strict regulation of the organization, operation and provision of gambling services. Nevertheless, the goals of gambling industry in Cyprus focus on releasing the summit of participation in gambling activities and consequently identifying the level of risk and drawbacks among the public.