Shifts in investor demand, increased regulatory reform, and new forms of competition are working together to change client expectations of what is possible as well as how much they should pay for wealth management services. We argue that a fundamentally different approach to business design and cost engineering is required for future success.
Cost management in the new reality starts with defining the value proposition and pricing for serving a particular investor segment, then architecting the delivery model, infrastructure, and required functions at a cost that ensures an acceptable profit margin. In this Point of View, we consider some of these market developments and provide recommendations to senior leaders tasked with charting a course going forward.
Bradley Kellum – Partner in the Americas Wealth and Asset Management Practice