Wednesday, August 27, 2008

Strategies for building sustainable profits in wealth management

A Deloitte Report

Reconnecting for profit
Strategies for building sustainable profits in wealth management

The global private banking and wealth management market has enjoyed significant growth over recent years, riding a wave of high asset prices. With after-tax returns on equity averaging over 25 per cent in several major European markets, the sector remains the darling of a financial services industry in search of some good news amidst recent market turmoil. Despite the profitable performance, we ask in this report if wealth managers have used the growth period wisely. Have they sufficiently adapted their business models so that they can face the next five years confident of further growth?

"Reconnecting for Profit" summarises the results of a major qualitative study based on almost 50 in-depth discussions with private clients and leading wealth management executives. The report argues that forces are aligning that could test the resilience of wealth managers’ business models. In particular, our research suggests that as wealth managers have pushed forward with their growth strategies, a significant portion of the client base is disconnected from, and lacks trust in, wealth management institutions. The report highlights strategies for wealth managers to reconnect for profit and practical steps to aid transformation.

Download the report(2008) of Deloitte from

No comments: