Global Wealth Managers: Out Of The Pit Stop - Into The Fast Lane

The 2019 edition of our annual Deutsche Bank Oliver Wyman Wealth Management Report provides an overview of recent industry trends and an outlook on future developments.

In 2018, Wealth Managers faced growing headwinds. Global high-net worth (HNW) wealth growth slowed to 4 percent in 2018. Lower AuM growth, more challenging markets and continued fee compression led to declining Wealth Management business valuations. The revenue pressure felt by Wealth Managers in late 2018 highlights the continued vulnerability of operating models to market stress. The rebound in early 2019 brought short-term relief for some but further pressure is inevitable as the end of the cycle approaches – Wealth Managers must take action.

We have outlined two key priorities for Wealth Managers to consider:

• Rethink the footprint in Emerging Markets – Wealth Managers need to rethink their positioning across Emerging Markets, which will constitute over half of global wealth growth – APAC and LatAm are of particular relevance

• Simplify the operating model – Wealth Managers need to demonstrate their ability to prepare their operating models for an approaching downturn by simplifying their front-office operations and getting into the driver’s seat for allocated costs

Achieving success along both dimensions will be the single most important factor in determining future winners and losers.

Global Wealth Managers: Out Of The Pit Stop - Into The Fast Lane