Wealth Management sector positioning to win a new round of customers
25 sectors worth a potential $400b to build Australia’s ‘lucky country’
25 March 2014: Wealth management remains key in research from professional services firm Deloitte as one of the top five of 25 sectors with the most potential to lift Australia’s growth trajectory over the next 20 years. Along with gas, agribusiness, international education and tourism, the wealth management sector is projected to be a ‘super-enabler’ helping to add an extra $250 billion to the national economy.
This third report in Deloitte’s Building the Lucky Country series - Positioning for prosperity? Catching the next wave, which focuses on business imperatives for a prosperous Australia, identifies an additional 19 pockets of growth to mining. “As long as we seize the opportunities,” warns Deloitte wealth management leader, Neil Brown. “We can add a further $150bn with these 19 growth pockets.
“With the combination of the world getting older and wealth in our region continuing to grow – wealth management services will continue to be in high demand,” Brown said. “This offers the Australian industry the perfect opportunity to trade on its expertise and the probity of its wealth management sector.”
Among the domestic growth pockets identified by Deloitte, those associated with wealth management include retirement living and leisure, residential aged care, reskilling the ageing workforce, and health.
Commenting on the research Brown said: “Three billion people in Asia will join the middle class by 2030, and by 2050 the region will account for more than half the world’s financial assets.
“This combination, together with our domestic success in building the fourth largest superannuation asset pool in the world, is an attractive proposition to both the domestic and the growing Asian middle classes.”
Brown pointed out the opportunities for
“The wealth management industry is positioning to win a new round of customers,” Brown said.
Brown explained that Australia’s industry has honed its asset management skills and built technologies that appeal to investors. He said: “Combined with strong regulation and a relatively stable policy framework focused on wealth accumulation, you can see why Australia has a shot at being a global competitor in the business of managing people’s money and becoming a more significant global financial centre.”
Positioning for prosperity? Catching the next wave is the third edition of Deloitte’s Building the Lucky Country series, which focuses on business imperatives for a prosperous Australia. A version of the full report was debated by a group of business and political leaders in February 2014 and the March report reflects their feedback.
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Last Updated: 28th March 2014
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