Oliver Wyman and Deutsche Bank have today released their fourth annual wealth management report, titled “Out of the pit stop - into the fast lane”, providing an overview of recent industry trends and an outlook for future developments.
Wealth managers faced growing headwinds in 2018, with global high-net-worth (HNW) wealth growth slowing to 4 percent. Lower asset under management growth, more challenging markets and continued fee compression created revenue pressure and led to declining wealth management business valuations.
The report highlights the following priorities:
Rethink footprint in emerging markets — more than half of HNW wealth growth will originate in emerging markets, so wealth managers need to rethink their positioning.
Asia-Pacific — based on structural changes, now is the time to assess entry into Mainland China.
Latin America — wealth managers must guide clients on their path towards more sophisticated investment strategies and better understanding of risk, given the low interest environment.
- Simplify the operating model — the Q1 2019 market rebound has given wealth managers a chance to improve their operating model efficiency and adjust their cost base
- To increase efficiency in the front office, wealth managers must free up advisor capacity for revenue generating activities by automating and digitizing processes, particularly in client onboarding, KYC/AML, and lending.
- Costs remain stubbornly high. Wealth managers need to focus on understanding and steering cost allocations as well as establishing a culture of cost ownership.
This report does not include Deutsche Bank Wealth Management.
Click here for an overview of the 2018 report: Global Wealth Management – Dare to be Different