In an era defined by complex financial markets and ever-evolving investment opportunities, wealth management has emerged as a crucial discipline for individuals and families looking to secure their financial future.

Wealth management is the comprehensive and strategic approach to managing an individual's or family's financial resources to achieve their financial goals and secure their long-term financial well-being. Wealth management services offer a range of benefits to individuals seeking professional financial guidance. One of the primary advantages is access to seasoned financial experts who can provide personalised advice, tailored to unique financial goals and circumstances. It is not always possible for us to keep track of the various investible assets in the market and which among them is properly suited for us. Hence, these professionals can assist in making the right investments through diversification, helping spread risk across various asset classes to maximise returns while minimising exposure to individual market fluctuations. Additionally, wealth managers can assess risk tolerance and craft an investment strategy that aligns with the customer's comfort level. However, this practice extends far beyond investment, encompassing various aspects such as financial planning, tax optimisation, estate planning and risk management, among others.

In a country like Bangladesh, business opportunities relating to wealth management is currently on the rise. As of June 2023, the number of bank accounts in Bangladesh with deposits of more than Tk 1 crore stood at 1,13,554, indicating a growing wealthy population in the country. Such a trend certainly poses a lot of opportunities for financial institutions to cater to the special needs of customers by offering them with tailor-made services relating to managing their wealth.

Another important point to consider in this matter is the evolving lifestyles of people. As life continues to become busier, it gets difficult for many individuals to give proper attention to personal wealth management. Hence, an institutional-level solution will be extremely valuable in the days to come. Banks and financial institutions need to grab this opportunity as they already have access to a wide range of consumers. They need to design products in wealth management such that a one-stop solution can be enjoyed by customers. And surely, the skill of relationship management that is usually demonstrated by such organisations can highly be leveraged in this regard. As an example, the wealth management programme may include affiliation with hospitals, so that in case of any emergency, customers can access proper medical services without any form of hassles. And this is just one example among numerous other options. Through day-to-day management of customers' investments, wealth managers free up their time and offer peace of mind, enabling them to focus on other aspects of life.

Wealth management is a field where financial institutions can make very good money too. It is just a matter of time for them to realise this gap in the market and come up with forward-looking service offerings. Just the other day, I was talking to a very close friend of mine who lives in Bangladesh with his wife. All his children are studying in North America, and they are more likely be pursuing a career abroad. For that friend of mine and many others like him, having a trusted organisation who can manage their wealth is very important.

Moreover, wealth mangers may also be able to ensure that assets are managed and distributed according to customer's wishes and that wealth is preserved for future generations in their absence.

Without proper management, wealth can quickly dissipate due to inflation, poor investment choices or unforeseen financial crises. Hence wealth management provides a structured framework to mitigate these risks and helps individuals and families protect and grow their assets. The sooner the financial institutions focus more on this aspect of consumer banking, the better it will be for them.

The author is an economic analyst.