The reshaping of the wealth management industry is in its early stages and players will need to make key choices about where and how they compete across their business models.
Women are an increasingly important, empowered, and wealthy client demographic. Yet only 8% of our respondents currently consider gender when segmenting their client base.
Wealth managers should they choose to outsource non-core elements of their services, must remember that they retain fiduciary responsibility. They will need to master negotiating service levels and assuring data security with their partners.
Digital change presents the promise of a re-imagined client experience. It presents opportunities for competitive differentiation. Older investors are already using tablets while smart phones have become an essential part of millennial daily life. Wealth managers will have to get better at viewing the future through their clients’ eyes.
As regulation continues to reshape the industry, successful players will reposition their business models to better adapt to the regulations.
Cyber security and privacy protection is now a C-Suite issue. Traditional approaches to cyber security are no longer appropriate. To build digital trust and ensure confidence in their cyber security strategy, wealth managers must take a different approach.
Firms should not underestimate the importance of culture, value and employee engagement as they look to achieve their business objectives, especially as they seek to provide incentives and appeal to a more diverse employee population.
Private banks and wealth managers need to be courageous and proactive if they are to rebuild external public perceptions and engender higher levels of client confidence and trust.
Going forward clients will demand a better client experience providing opportunities for both traditional and new wealth managers.
Fully exploiting data is a challenge as wealth managers have fragmented technology architectures. Differences in timing, release levels, packages and versions have all made the problem worse, affecting the roll out of new implementations.
The 2013 survey gathered insights and perspectives on critical aspects of the challenges confronting participants, with a host of different operating models and businesses across all segments of global wealth management.
In our view, the industry is now at an inflection point and there are two overarching strategic priorities for wealth managers: achieving excellence in client experience and managing transformational change.
Video: PwC's Steve Crosby, Americas lead, discusses the 2013 Private Banking and Wealth Management outlook and trends for the US.
Video: PwC's Jeremy Jensen, EMEA lead, discusses the 2013 Private Banking and Wealth Management outlook and trends for the UK.
Video: Private Banking and Wealth Management outlook - Asia PwC's Justin Ong, Asia lead, discusses the 2013 Private Banking and Wealth Management outlook and trends for Asia.
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