Fiduciary and wealth management

In the fiduciary and wealth management industry, the focus and activity is shifting towards improved client service and delivering real added value. The impact of new regulations and more demanding client expectations are forcing industry players to change the way they operate. Those who can master change will be in a position to lead the industry.

Current issues for fiduciaries and wealth managers

  • Tougher regulatory demands and greater transparency requirements
  • Increased pressures on costs
  • A challenging growth environment

Tougher regulatory demands and greater transparency requirements

Clients are more active in managing their own financial affairs and they are paying increased attention to reputation, regulatory compliance and risk management. Businesses risk management systems and processes are being upgraded to provide integrated approaches to better align risk and value. The global wealth management industry is now at the forefront of regulatory change.

Increased pressures on costs

However, cross-border standards, customer protection and transparency are anticipated to impact the front-end client experience and increase costs. The industry has historically underinvested in the back and middle office, and businesses are at different stages of their operational evolution. Many continue to run legacy systems and manual processes. Technology budgets are being directed to better support client relationship managers and the front-end client experience.

A challenging growth environment

In recent years, the industry has found both organic and inorganic growth very difficult to achieve. As they strive to grow revenues and earnings, they are attempting to strengthen their market position, growth potential and earnings through the use of mergers and acquisitions. These acquisitions are aimed to expand their product offering, distribution channels and geographical footprint.

Top quality people are also becoming more valuable, more difficult to source and more expensive to train. Links between performance and pay are becoming critical. New strategies, incentives and support are needed to attract and retain qualified professionals.

Turning these challenges into commercial opportunities

Wealth management continues to be a lucrative business with untapped potential for significant growth if institutions can be agile in adapting to meet changing demands.

We work with clients, devising operational model improvements that increase their revenue growth and improve cost performance. We help to assure client’s financial, tax, risk, regulatory compliance and reporting obligations.

We help organisations to work smarter and grow faster. We work with a variety of clients in the industry to help them accelerate growth and embed sustainability into their businesses. We constantly pioneer to give our clients an intelligent, imaginative and resourceful service. As part of PwC's global network of wealth management experts, we are well placed to help our clients as they address increasingly international challenges.