• The robo-advice space is likely to undergo consolidation, with incumbent wealth managers moving to acquire providers as a means of gaining a foothold in the automated investment space
• The universal banking model of old is diminishing and many players are stepping back from investment banking.
Ken Research has announced its latest publication on, ‘2016: Key Trends in Consumer Payments’, which offers detailed insights into the emerging trends across the wealth management industry. The publication includes various strategies wealth managers may adopt in order to respond to increasing competition. Additionally, the report also examines developments across a number of key strategic areas including regulations, product and services environment and other asset allocation drivers. More specifically, the report analyzes the impact of regulatory developments in the digital space on the business of wealth managers. The publication examines the consequences of commission bans for wealth managers in markets such as South Africa, Hong Kong and Canada. The report bases its findings on Verdict Financials’ 2015 Global Wealth Managers Survey of 343 executives across key areas and reviews the development tracked in the Wealth Management Competitor Tracker of over hundred companies.
As the leading wealth management firms across the globe are still reeling under the after-effects for the financial crisis, the traditional banking and investment models are taking a back seat. In fact, the large multi-national players are undergoing significant restructuring of business models in order to adapt to the needs of the new, more digitally inclined members of the Fintech world. Moreover, the wealth managers also face threat of competition from automated players of the digital world such as robo-advisors. Combined together, all the above mentioned factors are forcing wealth managers to rethink their business models and processes in order to sustain the competition profitably.
Talking about commission bans, they have pushed the industry towards a more universally applicable fee-based advice model. The ultra-high Net worth Individuals (UHNWs) are the fastest growing segment. Research has revealed that these UHNWs are favoring the new regulatory environment which constitutes of OECD’s Common Reporting Standards and commission bans. The popularity of these can be gauged from the fact that countries like Netherlands, Australia and the UK are no longer outliers in terms of commission bans. On the other hand, countries such as Canada, South Africa and Hong Kong have already accepted commission bans and are on the path of implementing full or partial bans.
Over the forecast period, it is projected that wealth mangers need to restructure their business models to be able to retain their clientele. One such move is the consolidation of human wealth managers with the robo-advisors. The incumbent wealth managers are moving towards acquisitions of providers as way of gaining foothold in the automated investment space.
Some of the trends governing the wealth management industry:
• New generation of visionary investors
• Digital revolution
• Advent of automated investment services through robo-advisors
• Challenging investment environment that requires diversification
• Shifting demographics and age of the investors
Key Topics Covered in the Report:
– The global landscape of wealth management investments industry
– Global drivers for wealth management investment
– Competitive landscape of the wealth management industry
– Detailed profiles of leading players
– Detailed product environment in the wealth management market
To know more on coverage, click on the link below:
Ankur Gupta, Head Marketing & Communications