Boston-based research firm, Forrester, is offering five predictions for wealth management in 2002.

Forrester notes that 2001 was an abysmal year for the brokerage industry online and offline, with trading volumes plummeting, asset flows reversing, and technology spending grinding to a halt. In 2002, it says that advisors will drive aggregation adoption. “Planners promising improved advice and service will convince clients to turn over the keys to their financial kingdoms and sign them up for aggregation.”

It also believes that mid-tier advice will finally win customers.” Call center and branch-based advisors — using objective, comprehensive, affordable, and easy-to-use online advice apps at firms like E*TRADE — will offer a viable alternative to a full-service advisor. More than 250,000 households either ignored or ill-served by full-service firms will cough up a few hundred dollars for multi-channel offers.”

Forrester predicts that discounters will ditch stock baskets. “Few retail investors will embrace stock baskets, spurring Charles Schwab and Fidelity Investments to abandon their nascent basket offerings.”

It also suggests that private banks and private client groups will choose lesser-known firm Finaplex to build their next-generation client and advisor workstations.

As well, it predicts that the firm American Funds (which is expected to come to Canada soon) will join the separate accounts fray by offering an all-in-one separate account product that includes trading, custody, and investment management.