2020 Foresight Report: Wealth Management Business Models and Best Practices

Wealth management is one of the most promising segments of the global financial services sector due to the emerging markets in Asia and Latin America.
By: Market Research Reports, Inc.
 
 
2020 Foresight Report  No Magic Bullet   Wealth Ma
2020 Foresight Report No Magic Bullet Wealth Ma
LEWES, Del. - Sept. 6, 2013 - PRLog -- Wealth management is one of the most promising segments of the global financial services sector due to the emerging markets in Asia and Latin America. However, downside risks have intensified due to financial crises, volatility in capital markets, the movement of capital to relatively safe assets and regions, and increased regulatory pressures and norms. Competitors specialize in various business models in order to cater to the diverse needs of high net worth individual (HNWI) clients. The segment’s participants differ in terms of size, corporate structure and clients. Such levels of diversification indicate that the wealth management segment can sustain a variety of profitable business models.

Wealth management business models differ in terms of firms, size, corporate structure, clients targeted and revenue generated. Many firms and organizations share common features in terms of their core activities, company history, operations and services, providing a basis for rudimentary or arbitrary business model classifications. It is possible to identify basic wealth management models based around banks or other custodial institutions; broker-dealers and stockbrokers; and investment managers and family offices.

Target audience

Wealth management companies
Contractor research organizations.
Academia or other industry observers
Marketing and advertising agencies

The report provides analysis, information and insights into wealth management models used by wealth management companies globally

The report provides a global snapshot of various wealth management business models adopted, their market size and future outlook.

The report provides a comprehensive analysis of the respective market size, future outlook and competitive landscape of leading wealth management companies.

The wealth management segment emerged as significant to the financial sector in the late 1980s. Due to an increase in demand, the segment was equipped with a network of investment advisors. Global wealth management growth declined dramatically during 2009−2012 due to the US economic crisis, combined with the Eurozone debt crisis in 2011, resulted in high market volatility and minimal growth that swept away investor assets and deterred them from investing in stocks and bonds.

The Asia-Pacific’s HNWIs population recorded significant growth during 2008−2012 at a CAGR of 11.27%, increasing from 2.4 million people in 2008 to 3.7 million people in 2012. Japan was the largest HNWI consumer market and accounted for 52.3% of the region’s total HNWI population. China is the second-largest market followed by Australia with respective shares of 17% and 5.1%. During the forecast period, the number of HNWI customers in this region is forecast to increase from 3.9 million people in 2013 to 5.1 million people in 2017, at a CAGR of 6.87%.

In terms of HNWI wealth, the Latin American region recorded an impressive CAGR of 9.82% during the review period. The HNWI wealth of this region increased from US$19.7 trillion in 2008 to US$28.7 trillion in 2012. Over the forecast period, the value of HNWI wealth in this region is forecast to increase from US$30.1 trillion in 2013 to US$35.1 trillion in 2017, at a CAGR of 3.93%.

The wealth management segment in emerging economies has recorded a greater level of market penetration. The growth and development of the wealth management segment was led by the advent of advanced technology and cost of infrastructure. These market drivers result in conducting decisions in respect with growth and development of the industry enabling UHNWIs to invest appropriately. Australia adopted the highest market penetration rate at 6% with a total of 2,585 UHNWIs and 155 wealth management institutions followed by Poland which grew at a penetration rate of 3.1%. Poland comprises of a total of 15 wealth management institutions providing services to 487 UHNWIs.

Market penetration rates are nowhere near saturation level, even in the developed economies of North America and Europe. This has obvious implications for competition and, by design, wealth management business models. In many nations there are a substantial number of potential clients that meet the typical entry requirements for a private banking or wealth management service. This untapped or ‘latent’ market could support a large number of new entrants.

Consolidation and acquisition activities in the wealth management segment are being driven by developed economies such as the US and the UK. The US alone recorded more than 100 acquisition deals in 2012, of which 85 were wealth management related. A similar pattern was observed in the UK.

Spanning over 79 pages, 25 tables and 37 figures, “2020 Foresight Report: No Magic Bullet - Wealth Management Models” report provides a comprehensive analysis of wealth management models adopted by various wealth management companies in the financial services industry and provides information on current market size and future prospects of the wealth management industry in developed and emerging markets.

In addition to covering the Wealth Management Business Models, Best Practices Framework Adopted by Wealth Management Segment, Wealth Management Models-Competitive Landscape and Industry Dynamics, Market Sizing - Global Market Size, Asia-Pacific, Americas and Europe (Regional market size and forecast).  The report covers 6 companies; Barclays, BNP Paribas, Deutsche Bank, HSBC, UBS, RBC.

For more information visit:http://www.marketresearchreports.com/timetric/2020-foresight-report-no-magic-bullet-wealth-management-models

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