Despite some strong first quarter results, wealth managers face a number of challenges. This joint report with Deutsche Bank is aimed at understanding what the industry can do to progress.
The Wealth Management industry can drive growth by increasing alternative asset allocations, capturing onshore asset growth in emerging markets, taking advantage of revenue synergies and adapting advisory models.
Wealth managers should identify new revenue streams, drawing inspiration from the technology sector. The greatest cost-saving opportunity lies in digitizing processes.
To drive future growth and profitability, wealth managers should:
- Increase allocations to alternative assets
- Capture onshore assets under management growth in emerging markets
- Take advantage of revenue synergies through greater cross-selling
- Adapt advisory models, for example by investing in digital capabilities
- Automate and digitize processes to enhance accuracy, security and efficiency
The report also elaborates on ways for wealth managers to identify new revenue streams by drawing inspiration from the technology industry, where firms tend to compete in one or more areas rather than offering an end-to-end service. Potential opportunities include providing non-banking products and services, making wealth management platforms available to the broader market or focusing on niche products or capabilities.