20 Years of the World Wealth Report : Looking Back and Ahead
In spite of the devastating effects of the financial crisis, global HNWI wealth expanded almost fourfold over the last 20 years.
In the 20 years the World Wealth Report has been published, we anticipated several industry trends, including technology disruption and the rise of social impact investing, but we did not predict the financial crisis and its related impact on regulatory oversight and social attitudes toward wealth.
Looking ahead, the report predicts that the pace of change will accelerate with disruption in four key areas: clients, operations, regulations, and digital technology. It is anticipated that change will span many issues, including but not limited to: market volatility, wealth transfer impact, pressure on traditional fee models, acceleration of value chain commoditization, regulatory focus on fiduciary duty, and FinTech disruption.
Firms appear to be constrained in their ability to invest for the future, given their relatively low budget allocations to forward-looking areas such as re-orienting the business model and developing new propositions.
Future Trends in Wealth Management across Client, Operations, Regulatory, and Digital (CORD) Areas
Source: Capgemini Financial Services Analysis, 2016; Executive Interviews, 2016; World Wealth Report 2016, Capgemini