Wealth Industry Evolution
In recent years, the entire banking & financial services sector has undergone a sea change. With a multi-dimensional change in the landscape of the industry, identifying and addressing the dynamics has become vital. At Intellect, we have classified and bucketed the changes across 3 key dimensions which cut across the customer, industry and regulatory parameters.
Delivering superior, differentiated and personalised investment advice is crucial for wealth management firms, now more than ever, with a firm eye on reducing the cost to serve.
Millennials moving to Wealth segment
Expecting differentiated advisory & convenient service
Strong Economic Performance
Global investible wealth growing at CAGR of 6%
Asia, Africa and Latin Americas to grow at 9%
*between 2018 – 2023 and Asia; as per BCG’s Global Wealth 2019 report on Reigniting Radical Growth
Changing Regulatory Requirements
Complex geo-wise and cross-border compliance Greater impetus to protect customer privacy, prevent mis selling and tax evasions
The changing dynamics in the wealth industry have created a much larger pool of wealth customers to serve; who are demanding and are looking for a differentiated and personalized service at their convenience. The emergence of this new yet very discerning segment of wealth customers has led to the AUMs becoming smaller, placing a larger demand on the wealth managers’ time. At the same time greater competitiveness in the industry has led to a greater churn in wealth managers. With customers ready to migrate to wealth managers who provide intuitive and quick advisory, there exists a big opportunity for the fleeted RMs who are able to effectively and efficiently serve the customers.
So, how does one curb the shrinking margins?