The global wealth-management industry delivered a few surprises in 2013. Excellent growth did not always translate into higher profits. The mature economies of the “old world” and the rapidly developing economies (RDEs) of the “new world” continued to move at different speeds in general, but some developed economies performed extremely well, shifting the playing field. And sophisticated digital offerings are increasingly becoming a source of competitive advantage.
Overall, the key challenge in the old world remains how to make the most of a large existing asset base amid volatile growth patterns, while the principal task in the new world is how to attract a sizable share of the new wealth that is being created more rapidly than ever. Players in every region will be required to forge creative strategies in order to deepen client relationships and lift both revenues and profits. But the road will not be easy. Indeed, most wealth managers continue to face common challenges in terms of gathering new assets, generating new revenues, managing costs, maximizing IT capabilities, complying with regulators, and finding winning investment solutions that foster client loyalty. The battle for assets and market share will become increasingly intense in the run-up to 2020.
In Riding a Wave of Growth: Global Wealth 2014, which is The Boston Consulting Group’s fourteenth annual report on the global wealth-management industry, we explore the current size of the market, the present state of offshore banking, and the performance of leading institutions in a wide range of categories. We also examine the growing digital aspects of wealth management, along with the most profitable business models—all with an eye toward the steps that wealth managers must take to position themselves advantageously.
Our goal, as always, is to present a clear and complete portrait of today’s wealth-management industry, as well as to offer thought-provoking analysis of issues that will affect all types of wealth managers as they pursue their growth and profitability ambitions in the years to come.