Fortune favors choice, not chance: How wealth management firms can pave the way to growth in new and emerging markets

January 2013
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Fortune favors choice, not chance: How wealth management firms can pave the way to growth in new and emerging markets

At a glance

Shifting demographics present potential new sources of growth for wealth management firms. Firms' success will depend on developing the right strategy for each market.

With global wealth shifting toward emerging markets, wealth managers are under increasing pressure to rethink their growth strategies and to capitalize on new market opportunities.

Banking power shifts from the G7 developed to the E7 emerging economies are triggering a shift in the wealth management industry. Globalization of wealth and regulatory changes in the market are having an impact on creating fast-rising, non-traditional banking centers. Projected revenue growth in emerging markets is far outstripping that of developed markets, and Singapore is expected to be the leading global wealth management center by 2013.

Shifting demographics will present potential new sources of growth for wealth management firms, but success will depend on developing the right strategy for each specific market. The success of wealth managers will depend largely on understanding the unique preferences and priorities of wealthy individuals combined with the regulatory demands and competitive pressures in local markets. Before deciding which countries to enter, leading wealth management firms perform a holistic assessment of various market entry opportunities.