From private banking to wealth management

Article

From private banking to wealth management

Challenges and opportunities

The financial crisis has led to a global movement in the U.S., Europe and elsewhere towards new and enhanced regulations as well as increased tax transparency pressure aimed at protecting both the banking system and clients. The impacts of this global movement are being felt across the entire banking industry.

Executive summary

These changes are pushing all those in the industry to adapt their business model in order to survive in an ever changing environment. In particular, private banks must rethink their vision as well as their business model, service offering, client segmentation and operational model while coping with constant profitability pressures.

Changes in the wealth management landscape

Europe and the U.S. will remain the largest financial centres in 2020

In 2012, global financial wealth grew by 8.2% to reach a total of €102.9 trillion. North America, Western Europe and Japan remain the
three main profit pools for private banking, though emerging countries such as those in the Asia-Pacific region are gaining ground over developed countries and this trend is expected to continue in the coming years.

According to the latest economic forecasts, the Asia-Pacific region will account for over 80% of global growth through 2020 (with growth mainly deriving from the creation of new wealth). China, India and Russia are projected to become the largest generators of wealth in the Asia-Pacific region, while the U.S. will remain the largest wealth market globally.
 

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Inside magazine issue 5 – June 2014

Inside is Deloitte’s quarterly magazine offering an exclusive insight into best practices, trends and opportunities faced by our clients across all industries.

Inside focuses on the main hot topics relevant for the market (Asset management, Banking, Insurance, Public sector, Healthcare, Private equity, Real estate, TMT, Manufacturing and consumer business, Transport and logistics).
 

PDF file - size: 4.2mb
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