The Trends in Asset Management After the Covid 19 Emergency

Provisions, insurance solutions to protect against unforeseen events, tools to connect private resources and the country’s growth: will this be the post-Covid-19 scenario for the savings sector?

The health emergency highlights the strengths and weaknesses of asset management in Europe, America, and the whole world.

On the one hand, the large amount of private savings that characterizes the U.S compared to other European countries has so far proved to be a lifeline for many families and, according to authoritative observers, could help the recovery with appropriate tools. Able to act as a bridge to SMEs.

On the other hand, the extension of the containment measures – with the blocking of activities and the provision of social safety nets – and the scarce dissemination of income protection tools other than those of public welfare are causing a reduction in available resources.

After the health emergency, the very need to improve asset management to cope with emergencies could lead to a change in the attitudes and behavior of savers, as is already happening in China, the first country hit by the epidemic.

How savings management is changing in China

Several surveys and analyses have been conducted to study how the health emergency has affected social behavior in China. These researches are interesting because they could help to intercept the trends that could also occur in Europe.

Regarding the trends in savings management, according to a survey by the China Youth Daily reported by Ansa, out of 2000 people interviewed, 48.5% claimed to have become more rational consumers during the epidemic, while 42.1% began to pay more attention to savings. The greater propensity to set aside resources also emerges from a survey. According to which 74% of the population plans to increase their savings after the epidemic caused by the new Coronavirus.

Regarding investment management, the same survey explains that 51% of respondents plan to change their investment portfolio to make it more prudent. In addition, 64% believe they will take out health or social security policies as a form of protection.

Trends in savings management in Italy

What will happen in Italy? Without pretending to make predictions, trends can be identified.

The prolonged closure of businesses is creating considerable difficulties for many families. Research by Nomisma and Crif on the lockdown effects reveals that 9 million Italians fear they will have to fund their savings. Public instruments of income integration do not always prove to be sufficient, especially if they are the primary source of livelihood for a family. Therefore, one of the needs that could emerge is the need to equip oneself with solutions that make it possible to set aside resources to deal with any new emergency periods that lead to a reduction in income from work.

Still, to protect family assets from the Covid-19 emergency, an input could come in the search for insurance solutions that help cope with unforeseen expenses and allow health problems to be faced with more significant serenity, integrating public welfare with solutions that can be tailored to specific needs.

Last but not least, a new push could come to convey private savings towards instruments that allow the economic fabric formed by SMEs to be restarted

More and more digital advice

Finally, among the trends that are already underway and will undoubtedly consolidate, there is the use of new technologies in the performance of professional consultancy.

Personal contacts will have to be limited for an indefinite but presumably very long period. It can thus be predicted that the use of new technologies to communicate will be fundamental even after the Covid-19 emergency in every sector, including professional advice relating to wealth management.

Digital tools have proved to be an excellent support to consultancy because they allow rapid exchange of information even in emergencies, with “agile” and increasingly personalized methods, and will enable you to continue to cultivate the close relationship between professionals and customers who is the basis of conscious management of savings.