New Oliver Wyman Wealth Management Report: Running Faster to Stand Still
July 21 2016 - 12:37PM
Business Wire
- Assets under management growth is
expected to slow from 7 percent per year over the past five years
to 5 percent per year until 2020
- To sustain profitability, the
industry will need to redesign the ‘core’ high-net worth service
model and digitize parts of the value chain
- The industry should explore new
sources of value creation, such as platforms that enable investors
to access opportunities such as growth stage financing or direct
real estate investments
Oliver Wyman released its first report on wealth management in a
new initiative that will become an annual series of in-depth
reports on the sector. The aim of the report is to provide insight
into the outlook for the wealth management industry at a time of
sustained interest in the sector among investors and financial
institutions.
“The forces that drove performance in wealth management in
recent years are changing, and firms will need to take action on
costs and develop new ways of engaging with clients to maintain
revenues,” says Christian Edelmann, global head of Oliver Wyman’s
Wealth and Asset Management practice.
Key highlights:
- Assets under management growth is
expected to slow from 7 percent per year over the past five years
to 5 percent per year until 2020 on the back of lower asset
returns. Fees may come under pressure due to higher transparency
standards, emerging competitors and the shift to passive
products.
- To sustain profitability, the industry
will need to redesign the ‘core’ high-net worth service model and
digitize parts of the value chain.
- The industry should explore new sources
of value creation such as platforms that enable investors to access
opportunities such as growth stage financing or direct real estate
investments.
- Leaders will need to sharpen their
focus on client acquisitions and managing attrition risks, in
particular with respect to inter-generational wealth
transfers.
- Wealth managers should expand their
existing philanthropy offering into full charity operations
support, following the trend of professionalisation in charitable
giving.
The report, Wealth Management: Running faster to stand still,
was co-authored with Deutsche Bank Research.
The report is available for download on the Oliver Wyman
website.
About Oliver Wyman
Oliver Wyman is a global leader in management consulting. With
offices in 50+ cities across 26 countries, Oliver Wyman combines
deep industry knowledge with specialized expertise in strategy,
operations, risk management, and organization transformation. The
firm's 3,700 professionals help clients optimize their business,
improve their operations and risk profile, and accelerate their
organizational performance to seize the most attractive
opportunities. Oliver Wyman is a wholly owned subsidiary of Marsh
& McLennan Companies (NYSE:MMC). For more information, visit
www.oliverwyman.com. Follow Oliver Wyman on Twitter
@OliverWyman.
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