The status quo in the private banking and wealth management industry is changing as the focus shifts to client service and value delivery, according to a new PwC report published today. The report -Anticipating a New Age in Wealth Management - includes findings from PwC’s 2011 Global Private Banking and Wealth Management Survey.
In its 2011 biennial report, which surveyed a record 275 institutions from 67 countries, PwC found that wealth management continues to be a lucrative business with untapped potential for significant growth if institutions can be agile in adapting to meet changing demands.
New competitors are challenging the dominance of established firms, and the impact of new regulations and more demanding client expectations are forcing private banks and wealth managers to change their client service infrastructures and the way they operate. Those who can master change will be in a position to win increased market share and lead the industry, says PwC.
On what this means for the Indian scenario, Robin Roy, Associate Director – Financial Services, PwC India said:
“China and India are among the biggest with middle-class populations predicted to swell by hundreds of millions over the next decade. The new middle classes will seek out investment opportunities as their attention shifts from basic subsistence to stabilising and growing income. While political and regulatory risks can be significant in these markets, the decline of state-owned entities, abundant natural resources and economic reform agendas will spur economic activity, establishing the conditions for wealth creation. Wise wealth managers will need to diversify their client bases while increasing their awareness of non-traditional, high-growth emerging market countries.”
PwC’s survey found that the industry faces multiple pressures in five key areas, as follows:
On the future of the industry, Justin Ong, PwC Global Private Banking and Wealth Management, Asia Pacific leader, said:
“Our survey shows that the centre of gravity for wealth management is moving, and established centres are under pressure from emerging markets. In response to increased regulatory pressures, our respondents see Switzerland, London and, to a lesser extent, New York, all being challenged by the rise of Singapore and Hong Kong in the coming two years.”
About the PricewaterhouseCoopers Global Private Banking and Wealth Management Survey
The PwC Global Private Banking and Wealth Management Survey was conducted between December 2010 and April 2011. Survey questionnaires were open to members of the private banking and wealth management community, and completed by 275 institutions in 67 countries, including 62 percent from Europe, 24 percent from the Americas and 14 percent from the Asia-Pacific region. The survey is not sponsored by any third party is part of PwC’s thought leadership to the financial services industry.
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