Wednesday, June 15, 2016
For 14 years, BCG has conducted a proprietary benchmarking survey of wealth management providers from all over the world, running the spectrum from small boutiques to the world’s largest wealth managers—and covering multiple business models, from onshore to offshore and from banking to brokerage. A key finding in this year’s benchmarking is that average revenue and profit margins declined for wealth managers from 2012 to 2015. (See Exhibit 1.)
This development underlines the need for new strategies and approaches. Three major trends have altered—and will continue to alter—the face of wealth management: tightening regulation, accelerating digital innovation, and shifting needs in traditional wealth-based client segments.