Since the financial crisis began in 2008, stock markets have enjoyed a considerable bull run, GDP growth is again robust in many markets, and assets under management are on the upswing around the globe. But these gains have not translated into the amount of top- and bottomline growth that wealth managers would expect based on past recoveries.
According to a new study of global wealth managers by Strategy&, the prospects for wealth management have improved significantly over the last 12 months, but new global regulations (including the battle against undeclared offshore assets), changing client behavior, the rapid advance of digitization, and a fluid competitive landscape have permanently altered the rules of the game and raised the cost of doing business. Wealth managers must learn the new rules quickly and adapt their playbook accordingly if they are to capitalize on the continued economic recovery in 2014 and 2015.
There is a four-part solution: Apply a “capabilities lens” to look for markets where you can compete effectively, rethink your firm’s value proposition with tiered offerings aimed at transparency and client suitability, go digital with more effective use of information and communication tools, and use a Fit for Growth* approach to adapt your cost structure to the revenue realities.
*Fit for Growth is a registered service mark of PwC Strategy& Inc. in the United States.