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Private Wealth Management: Evolve to Survive

  • ,  Chief Executive |
  • 22 Jul 2020
  • Updated 24 Jul 2020

Intergenerational Wealth Transfer: Profits or Pitfalls?

Private Wealth Management faces challenges from all sides, particularly those related to the Great Intergenerational Global Wealth Transfer. Clients from different generations have varied expectations regarding service and experience levels, interaction via new technologies and attitudes towards investing, to name but a few. As digital and generational disruption is dictating, the industry needs to rapidly reassess and deploy a radical and significant adjustment to existing business models if it is to evolve and survive.

This selection of articles and reports focuses on those challenges and suggests ways in which wealth management businesses can adapt to meet them, while also taking advantage of the opportunities that this changing landscape will undoubtedly offer. There are in-depth analyses into various aspects of private wealth management, including recently published material on family offices and private banking, why Millennials make sustainable investing a top priority, and how demographic change will see more women involved in key financial decision-making. Several papers also provide localised, regional perspectives.


homo digitalis

Earning Investors' Trust: Shaping client relationships (CFA Institute, 2020)

CFA Institute outlines three major themes that affect investor trust: information, innovation, and influence. Information is key, as investors will not trust a system that does not inform. As wealth transfers to a different generation, innovation (particularly the use of technology) also enables the final theme – influence.

Digitalization of Wealth Management (SimCorp, 2020)

Digital disruption is affecting wealth management, pressuring margins and 'democratising' investment for a new generation of retail clients, many of whom were previously excluded from investment markets. Wealth managers must 'adapt to survive’.

Asset Management: The CX factor (Aviva Investors blog, 2020)

For compliance reasons, this paper is only accessible in certain geographies

Aviva Investors notes that the COVID-19 lockdown has accelerated existing adoption in the use of technology by asset managers, who are using it to deliver a better remote client communication experience.

The Future of Wealth Management — A CEO agenda (BCG, 2020)

BCG's 20th Global Wealth Report seeks to inform the debate about the future of wealth management industry growth by first looking back at 20 years of study, and then suggesting how the industry's value proposition and offering must change over the next two decades.

Global Wealth Management Report 2020 (Oliver Wyman/Morgan Stanley)

In this Oliver Wyman/Morgan Stanley piece, they suggest that wealth managers need to cut costs, provide differentiated product offerings and accelerate technology investment if they are to remain competitive over the next five years.

Individual Investors’ Use of Financial Advisors (SIFMA/Cerulli Associates, 2020)

Cerulli Associates and the Securities Industry and Financial Markets Association (SIFMA) join forces to investigate the role that financial advisors play for those investors with between $100k and $1m to invest.

The Transformation of Wealth Management (Refinitiv, 2020)

Refinitiv notes how digital disruption is affecting wealth managers and is forcing them to rethink all aspects of their business, particularly CX and client engagement strategies.

Accenture Wealth Management Survey: Survive and thrive to 2025 (Accenture, 2020)

This second edition of the Orbium/Accenture Wealth Management C-Level Survey finds a challenging, but potentially rewarding, landscape for those who can adapt to the monumental challenges that lie ahead.

Global Family Office Report 2020 (UBS Global Wealth Management, 2020)

This recent study from UBS Global Wealth Management finds single family offices are both different, yet similar (particularly the largest, which adopt an institutional approach to investing). This report looks to shed light on several key challenges faced by these most idiosyncratic of investors.

Family Offices: Global Landscape and Key trends (INSEAD, 2020)

INSEAD offers its overview of Family Offices and trends within that industry, before drilling down to supply some more granular detail on a number of the challenges that Single Family Offices face.

Swipe to Invest: The story behind Millennials and ESG investing (MSCI, 2020)

MSCI collates several reports illustrating how a changing generation of investors (mostly, but not just, Millennials) is making sustainable investing a priority. They suggest that wealth managers must offer ESG options to keep wealth that is transferring between generations, but also to attract new investors.

The Great Global Wealth Transfer (IQ-EQ, 2020)

The Great Global Wealth Transfer Report highlights both the scale (estimated at between $15-$30 trillion) and the differences in approaches to investing, the use of technology and professional support expected between the inheriting generation and those doing the transferring.

Gen X: The Neglected Generation (Cerulli Associates, 2019)

For compliance reasons, this paper is only accessible in the United States

Cerulli Associates and SIFMA (Securities Industry and Financial Markets Association) join forces to investigate the role that financial advisors play for those investors with between $100k and $1m to invest.

Engaging Millennials Worldwide with Retirement Saving (BNY Mellon, 2020)

BNY Mellon explores the significant differences in approach and attitude to investing for retirement between today's Boomers and Millennials.

Private Banking in Europe: A future of accelerated change (McKinsey & Company, Jul 2020)

McKinsey & Company focuses upon the role of the Client Relationship Manager who has been an integral part of the private banking and wealth management model. Transformation of the industry is already happening, as cost pressures bite and demand for digital servicing by customers is only increasing.

Asia Wealth Management: Adapting to a post-COVID-19 world (McKinsey & Company, 2020)

In this report, McKinsey & Company suggests how the various parts of the wealth management industry in Asia can best adapt to the significant challenges and opportunities that present themselves across the region.

Canadian Wealth Management Industry in the Time of Coronavirus (Deloitte, Jun 2020)

Deloitte investigates the changes underway in the Canadian wealth management industry, driven in part by regulation, technological change and rising client expectations. These have combined to exert such cost pressures that existing business and revenue models may no longer be fit for purpose.

On the Cusp of Change: North American wealth management in 2030 (McKinsey & Company, 2020)

McKinsey notes the profound shifts that are likely to occur in the North American wealth management industry over the next decade. These are driven by rapidly changing cost dynamics, related to the benefits afforded by technology, such as personalisation of advice and data-driven processing.

Podcast: The future of finance is female (Hermes IM, 2020)

This podcast from Federated Hermes discusses proprietary research undertaken by Steve Chiavarone, portfolio manager and equity strategist, in which he highlights the differences between Boomers and Millennials and how women will play a much more significant role in the financial decision-making process.