Wealth Managers showed strong results in 2017, but tail risks continued to grow. Net interest income tailwinds from recent USD rate hikes provided some relief, but fee pressure remains high, and costs must remain a top priority as profitability remains highly sensitive to top-line performance.
While signs of a market correction are intensifying, efforts to diversify revenue streams over the past decade will not provide sufficient protection against revenue declines in the next market downturn. We have identified measures Wealth Managers can take to soften revenue pressure in a market downturn.
To prepare for economic success beyond the next market downturn, Wealth Managers need to look towards more strategic changes to their value propositions and business models, which they have failed to do in recent years.
We have outlined three key priorities for Wealth Managers to consider:
- Focus on key competencies
- Embrace data analytics
- Transforming the workforce
Our report elaborates on how Wealth Managers must address these priorities, and which actions have to be taken in order to emerge as a winner.
Kinner Lakhani, Head of European Financials Research at Deutsche Bank, with Kai Upadek, Oliver Wyman Partner & Global Head of Wealth Management, outline key strategies for Wealth Managers
Implications for the C-Level
For more detail on our analysis of the wealth management industry, please download the full version of the report.