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The post-crisis years have witnessed profound transformations within the financial services sector. Global wealth managers now face the imperative of adapting to a swiftly evolving market environment, which is in many ways undergoing significant transformation.
Client expectations, shareholder aspirations, stringent new regulations, and game-changing technological advancements are reshaping the future landscape of businessin the industry, shaping their strategic requirements. While it remns speculative how these developments will fully materialize over time, it's unmistakably clear that novel structures within the wealth management sector will emerge in coming years. Embracing this new reality early on will unlock opportunities for profitable growth.
Industry Outlook:
The global volume of net investable assets NIA held by high-net-worth individuals HNWI+ is forecast to grow approximately 25 to nearly US$70 trillion by 2021.
Holistic wealth management, characterized as a digitally integrated business model, is anticipated to emerge as the dominant form. By 2025, holistic wealth managers are projected to capture a market share of around 30.
Traditional wealth managers, particularly those based or operating in the United States with offshore operations, are likely to mntn their presence in international offshore markets given favorable conditions. Their service offerings will increasingly mirror those of onshore counterparts.
Seizing Global Growth Potential:
The sheer size and rate of growth within the HNWI+ segment of the global wealth management market present considerable opportunities for investors. This sector boasts an impressive US$70 billion worth of NIA increase across certn nations such as Brazil and Mexico, driving Latin America's growth trajectory.
European regions, notably Western Europe with major contributors like the UK and Germany, will collectively contribute over 20 to global NIA growth despite Brexit's current economic dampening effects. Russia, despite geopolitical tensions, remns an attractive market thanks to its high concentration of HNWI+ individuals.
Digital Holistic Wealth Manager Evolution:
No definitive business the digital holistic wealth manager currently exists. However, it falls on wealth managers to predict and adapt swiftly in this rapidly transforming landscape.
A range of factors including cost structures, client needs, growth rates across different markets, HNWI+ population density, and regulatory requirements will influence their alignment with varying business. The rules are indeed changing; now is the time for wealth managers to strategize and position themselves effectively in this dynamic market.
In , successful navigation through these turbulent waters requires a proactive approach from wealth managers as they navigate towards embracing transformative opportunities that can secure their presence in an evolving market landscape
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Global Wealth Management Transformation HNWI Market Forecast Growth Digital Holistic Wealth Model Regulatory Impact on Wealth Sector Latin America NIA Opportunities European Wealth Management Expansion