Transformational change sweeps wealth managers as they reconfigure to win back client trust. A new equilibrium of capitalisers and laggards will emerge within the next two years.
The PwC report “Navigating to tomorrow: serving clients and creating value” includes findings from PwC’s 2013 20th anniversary Global Private Banking and Wealth Management Survey.
The report found that wealth managers are struggling with the challenges posed by the economic environment and continuing regulatory pressures. The wealth management industry is at an inflection point, precipitated by continuing regulatory pressure, a challenging macro-economic environment, margin compression, changing demographics and trust challenges. Surviving and succeeding in this environment requires changing to a more consultative business model that places a premium on “doing the right thing.
PwC’s survey found that the industry faces multiple pressures in five key areas:
- Markets and Clients
- Risk and Regulation
- Human and Capital
- Operations and Technology
- Products and Services
The 2013 Survey had 200 participants from 50 countries.