Wealth Management Top 10 Trends for 2016

Wealth Management Trends for 2016

2 Copyright Capgemini 2013. All Rights Reserved

Presentation Title | Date | Financial Services

Cross-sell opportunities

Holistic financial planning

services

Wealth Management firms are building lending

solutions to cater to the strong HNWI demand

for credit and to enhance performance

17.8%

28.6%

Use of credit highest in

the emerging markets of

Latin America Percentage of HNWIs

(global) total personal

assets financed by

credit

25.5% Followed by Asia-Pacific

(excl. Japan)

Source: Capgemini Financial Services Analysis, 2015; Capgemini and RBC Wealth Management Global HNW Insights Survey, 2015



Improved efficiencies

Reduced operational costs and

risks

Firms are increasingly adopting utility-based

models for their middle- and back-office

functions

Focus on value-added services

Utility model leverages

standardization, outsourcing, and

economies of scale

Source: Capgemini Financial Services Analysis, 2015; Next generation private banking operating models, Hubbis, August 2015



Proliferation of digital

channels

increasing number of data theft

instances

Cyber threats are increasing at a faster rate,

resulting in rise in focus on cyber security by

wealth management firms

Protection of brand reputation

15.0%

RIAs reported being

victims of a cyber

security breach in the

past 18 months

$3.8

million

Average cost of data

breach incident

increased by 23% from

2013 levels

Source: Capgemini Financial Services Analysis, 2015; Firm cyber security breaches on the rise, WealthManagement.com, June 2015; High-tech attacks, High cost: Data breaches cost average of $3.8 million each, CNBC, May 2015



Significant cost benefit

Scale down/up infrastructure as

necessary

Cloud computing is transforming the IT

landscape of the wealth management industry

Minimize waiting period for application

deployment

Offers better access to

information from any geographical

location, further improving client-

wealth manager relations

Source: Capgemini Financial Services Analysis, 2015



Advances in technology

Client demand for digital services

Wave of digital revolution is transforming the

industry with the rise of new entrants and

technological innovations

Increase in regulations

80.0% of under-40 HNWIs indicated they would

leave their wealth management firm if it

fails to provide a integrated-channel

experience

Source: Capgemini Financial Services Analysis, 2015; World Wealth Report 2014, Capgemini and RBC Wealth Management



Social Responsible Investing

Impact Investing

HNWIs are looking forward for support from

their wealth managers in driving social impact,

as they desire to contribute to the society

Traditional Philanthropy/Donations

92.0% of the HNWIs ascribe some level of

importance to driving social impact and

it is extremely or very important to over

60.0% of HNWIs globally

Source: Capgemini Financial Services Analysis, 2015; Capgemini and RBC Wealth Management Global HNW Insights Survey, 2014; Impact investing on the cusp of mainstream wealth management, Investment News, June 2014



Desire to interact digitally

with firms

Lower costs and lower

thresholds

Converging demographic, technological

trends, and changing HNWI demands are

driving the adoption of automated-advisors

Offloading of basic back-office tasks

US$3.3

4.2 trillion

48.6%

HNWIs saying they would

consider using automated

advisors for a portion of their

portfolio U.S. market potential, with both

HNWIs and mass-affluent

individuals taken into account

48.3%

Of these, HNWIs considering

lower costs and higher

convenience as the primary

reasons

Source: Capgemini Financial Services Analysis, 2015; Capgemini and RBC Wealth Management Global HNW Insights Survey, 2015



Optimize channel

management

Customer retention and

acquisition

Firms are increasingly using predictive

analytics to process vast amounts of

structured and unstructured data

Cross- and up-selling opportunities

Produces actionable information that

enables firms to better understand their

clients and enhance client experience

and loyalty

Source: Capgemini Financial Services Analysis, 2015; World Wealth Report 2015, Capgemini and RBC Wealth Management



Divesting/exiting business

from non-strategic markets

Regulatory capital requirements

Business opportunities coupled with the need

for operational restructuring, is pushing firms

to focus on their priority markets

Increase in HNWI populations in emerging

markets

Primary objective is to achieve

sustainable growth in priority markets

and maintain profitability

Source: Capgemini Financial Services Analysis, 2015



Changing expectations and

behavioral patterns

Automation of low-value back-

office tasks

Firms are investing in financial planning and

advice tools, to empower wealth mangers to

offer personalized recommendations to HNWIs

Cost-efficient and technologically advanced

operating models

80.5% of wealth managers consider wealth-planning tools to be the most

important of the capabilities needed to

meet changing client needs

Source: Capgemini Financial Services Analysis, 2015; World Wealth Report 2015, Capgemini and RBC Wealth Management ; Improving financial advisor productivity through automation, Capgemini, 2011

The information contained in this presentation is proprietary.

2015 Capgemini. All rights reserved.

www.capgemini.com

About Capgemini

Now with 180,000 people in over 40 countries, Capgemini is one

of the world's foremost providers of consulting, technology and

outsourcing services. The Group reported 2014 global revenues

of EUR 10.573 billion.

Together with its clients, Capgemini creates and delivers

business and technology solutions that fit their needs and drive

the results they want. A deeply multicultural organization,

Capgemini has developed its own way of working, the

Collaborative Business ExperienceTM, and draws on

Rightshore, its worldwide delivery model.

About Capgemini

Now with 180,000 people in over 40 countries, Capgemini is one

of the world's foremost providers of consulting, technology and

outsourcing services. The Group reported 2014 global revenues

of EUR 10.573 billion.

Together with its clients, Capgemini creates and delivers

business and technology solutions that fit their needs and drive

the results they want. A deeply multicultural organization,

Capgemini has developed its own way of working, the

Collaborative Business ExperienceTM, and draws on

Rightshore, its worldwide delivery model.

http://www.facebook.com/Capgeminihttp://www.linkedin.com/company/capgeminihttp://www.twitter.com/capgeminihttp://www.youtube.com/capgeminihttp://www.slideshare.net/capgemini

Wealth Management Top 10 Trends for 2016

Economy & Finance

Transcript of Wealth Management Top 10 Trends for 2016