Wealth Managers must take action to capture growth opportunities while preparing their operating model for an eventual downturn
Hong Kong and Singapore
Be alert to developments in offshore hubs Hong Kong and Singapore while the challenge to build scale is growing
Assess the China onshore opportunity now,
given large structural changes
Place concentrated positions to set up onshore advisory in select SEA markets to react to regulatory reforms
Integrate onshore and offshore offerings to gain competitive advantage
More than half of HNW wealth growth will originate in Emerging Markets vs one third of stock today. Wealth Managers need to rethink their positioning in Asia-Pacific and Latin America.
Front office & support
Non-front office related activities
Operations & IT
Front office & Front office support
Legal, Risk & Compliance
The Q1 2019 market rebound has given Wealth Managers a last chance to improve efficiency of their operating model and adjust their cost base before an eventual downturn.
To increase efficiency in the front office, Wealth Managers must free up advisor capacity for revenue generating activities by automating and digitizing processes, particularly in client onboarding, KYC/AML, and lending. Embedding different service levels and greater automation in the investment engine is still a largely underutilized lever. Wealth Managers need to align their offering with client needs in an industrialized, mass personalized offering.
Allocated costs remain stubbornly high and should be tackled by lowering group services consumption. Wealth Managers need to focus on understanding and steering cost allocations as well as establishing a culture of cost ownership to get into the driver’s seat for allocated costs.
Other (e.g. market data, corporate real estate, corporate sustainability)
Cost breakdown by function, indicative (% of total costs)