Wealth management in belgium and the netherlands 2011

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Datamonitor’s “Wealth Management in Belgium and the Netherlands 2011” is now available at ReportsnReports.com.

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Wealth management in belgium and the netherlands 2011

  1. 1. Wealth Management in Belgium and the Netherlands 2011IntroductionClients lost a lot in the recession: returns, risk tolerance and confidence. Now in a rebuilding phase,wealth managers that understand their clients demands and motivations are in the best position toprofit. Datamonitors analysis provides the data and insight to monitor competitors strategies, sizetheir potential customer base, and understand their needs.Features and benefits Build your customer targeting strategy using in-depth HNW demographics and needs analysis based on Datamonitors annual Global Wealth Manager Survey. Assess your competition through detailed profiles of notable players, including the customer targeting, marketing and product strategies they employ. Size your potential client base using Datamonitors proprietary data, presenting the number of affluent individuals by liquid asset band to 2014.HighlightsBelgium was home to more than 2.1 million mass affluent individuals at the end of 2006, but the creditcrisis wiped almost 400,000 of them out of the mass affluent population by the end of 2009. The Dutchmass affluent on the other hand population grew or remained fairly stable through to 2008, beforecontracting.The typical Belgo-Dutch HNW customer is over 50, and has earned his wealth throughentrepreneurship. He is conservative, with a lower-than-average financial acumen and low risktolerance. As a result he is mistrustful of discretionary mandates, preferring instead to have a say inthe management of his portfolio through advisory services.Banks in Belgium and the Netherlands were unprepared for the financial crisis and all of the majorbanks in the two countries, with the exception of Rabobank, required help from their governments tosurvive. The crisis precipitated an overhaul of the banking system.Table Of ContentsOVERVIEWCatalystSummaryMethodology
  2. 2. EXECUTIVE SUMMARYBank bailouts weigh on the Belgian and Dutch economies, but their affluent populations are on theincrease againBelgo-Dutch affluent populations contracted sharply in 2009, and have not recovered to pre-crisislevelsHowever, the affluent Belgian and Dutch populations are to see steady growth over the coming yearsBelgo-Dutch HNW individuals are typically older, entrepreneurial, and financially conservativeThe banking sectors in Belgium and the Netherlands are highly concentrated, and bank failuresimpacted the whole marketThe top three banks in Belgium hold 80% of the countrys assetsThe top three banks in the Netherlands hold just under half of the countrys assetsThe financial crisis resulted in a slew of bailouts and nationalizationsThe crisis precipitated an overhaul of the banking systemSIZING AND FORECASTING THE AFFLUENT MARKET IN BELGIUM AND THE NETHERLANDSIntroductionMacroeconomic overviewRecent trends and performanceGDPBelgium did not fare as badly as much of the rest of Europe during the recessionInflationLong-term and short-term interest ratesStock market capitalizationIncome distribution and inequalityRegulation of wealth management in Belgium and the NetherlandsIndustry regulatorsIndustry associationsRecent legislation and regulatory developmentsSizing the onshore affluent populationBelgian and Dutch affluent populations contracted sharply in 2009, and have not recovered to pre-crisis levelsOnshore liquid assets contracted sharply during the financial crisisForecasting the onshore affluent marketThe affluent Belgian and Dutch populations are to see steady growth over the coming yearsBelgo-Dutch mass affluent AUM will recover from the latest recession in 2011Belgo-Dutch HNW individuals tend to keep their wealth onshore today(Untitled sub-section)HNW CUSTOMERS IN BELGIUM AND THE NETHERLANDSIntroductionWho is the typical Belgo-Dutch HNW investor?Belgium and the Netherlands have fewer HNW individuals in their peak earning yearsWomen account for 42% of HNW individuals in the Belgo-Dutch regionNearly half of HNW individuals have amassed their fortunes through entrepreneurshipBelgo-Dutch HNW individuals are conservative investors, but will shift somewhat into equities withintwo yearsCash and fixed income account for the majority of Belgo-Dutch HNW individuals portfolios today
  3. 3. Detailed asset class analysis shows that Belgian HNW individuals have invested most in equitiesWithin two years, equities will increase as a proportion of Belgo-Dutch HNW portfolios, while cash willdecreaseBelgo-Dutch HNW clients look to their wealth managers for asset management rather than creditproductsBelgo-Dutch HNW clients are well catered for by their private banksDiscretionary asset management is out of favor among Belgo-Dutch HNW individuals, and will remainsoCredit demand is concentrated in credit cardsPlanning services are very much in demand among Belgo-Dutch HNW individuals, but insurance andpensions are notBelgo-Dutch HNW individuals are risk averse and loyalRisk appetite is very low among HNW individualsBelgo-Dutch HNW clients place a high premium on face-to-face contactDespite high demand for face-to-face interaction, local wealth managers meet with clients quarterlyBelgo-Dutch HNW individuals show moderate loyalty to their wealth managersBelgo-Dutch HNW investors spread their wealth between wealth managersInternal referrals are the most effective means of customer acquisitionCOMPETITOR DEVELOPMENTS IN BELGO-DUTCH WEALTH MANAGEMENTIntroductionBusiness models of Belgo-Dutch wealth managersThe retail banking system in Belgium and the NetherlandsCompetitor trendsThe financial crisis resulted in a slew of bailouts and nationalizationsCompetitor profilesABN AmroBNP Paribas FortisDelen Private Bank and Bank J. Van BredaDexia Private BankingING Private BankingVan LanschotAPPENDIXSupplementary dataDefinitionsHigh net worth (HNW)Liquid assetsMass affluentMeasures of growthMethodologyOverall methodologyGlobal Wealth Model MethodologyGlobal Wealth Managers Survey 2011Further readingSelected bibliography
  4. 4. Ask the analystDisclaimerLIST OF TABLESTable: Key Belgian macroeconomic dataTable: Key Dutch macroeconomic dataTable: Belgian mass affluent population (000s), 2006–10Table: Dutch mass affluent population (000s), 2006–10Table: Belgian HNW population (000s), 2006–10Table: Dutch HNW population (000s), 2006–10Table: Value of Belgian mass affluent assets by asset band (€bn), 2006–10Table: Value of Dutch mass affluent assets by asset band (€bn), 2006–10Table: Value of Belgian HNW assets by asset band (€bn), 2006–10Table: Value of Dutch HNW assets by asset band (€bn), 2006–10Table: Forecast of the Belgian mass affluent population (000s), 2010–14Table: Forecast of the Dutch mass affluent population (000s), 2010–14Table: Forecast of the Belgian HNW population (000s), 2010–14Table: Forecast of the Dutch HNW population (000s), 2010–14Table: Value of Belgian mass affluent liquid assets by asset band (€bn), 2010–14Table: Value of Dutch mass affluent liquid assets by asset band (€bn), 2010–14Table: Value of Belgian HNW liquid assets by asset band (€bn), 2010–14Table: Value of Dutch HNW liquid assets by asset band (€bn), 2010–14Table: Belgo-Dutch wealth managers, 2010Table: Belgo-Dutch wealth managers, 2010Table: ABN Amro wealth management brands, 2011Table: ABN Amro retail and private banking performance, 2009–10Table: BNP Paribas Fortis wealth management brands, 2011Table: Delen Private Bank and J. Van Breda wealth management brands, 2011Table: Delen Private Bank performance, 2009–10Table: J. Van Breda performance, 2009–10Table: Dexia wealth management brands, 2011Table: ING wealth management brands, 2011Table: ING retail Belgium performance, 2009–10Table: Van Lanschot wealth management brands, 2011Table: Van Lanschot private and business banking performance, 2009–10Table: Western European stock market capitalization (€bn), 2006–10LIST OF FIGURESFigure: Belgium and the Netherlands are relatively small economies, as measured by GDP at 2000constant pricesFigure: After sharp contractions, GDP growth in Belgium and the Netherlands is positive againFigure: While Belgian CPI was volatile in 2007–10, Dutch inflation remained relatively steadyFigure: Long-term rates held up during the recessionFigure: Stock markets in Belgium and the Netherlands have not yet recovered from the recessionFigure: Belgium ranks slightly higher in terms of inequality than the NetherlandsFigure: The mass affluent Belgian population contracted more sharply than its Dutch peer group during
  5. 5. the recessionFigure: The Dutch HNW population grew during 2006–10 while the Belgian HNW population declinedFigure: Belgo-Dutch mass affluent portfolios contracted sharply in 2009Figure: Flat growth was seen in Belgo-Dutch HNW portfolios during 2006–10Figure: The Belgian mass affluent population will grow more strongly than the Dutch mass affluentpopulation to 2014Figure: The HNW population will grow robustly in Belgium and the Netherlands to 2014Figure: Mass affluent portfolios will see strong growth to 2014Figure: HNW AUM will grow in both Belgium and the Netherlands to 2014Figure: There are fewer HNW individuals in their peak earning years in Belgium and the NetherlandsFigure: More HNW individuals are women in Belgium and the Netherlands than in the rest of EuropeFigure: Belgo-Dutch HNW individuals are a more entrepreneurial customer base, and are moreinheritance-based than those found in the rest of EuropeFigure: Belgo-Dutch HNW individuals are highly liquid and conservativeFigure: Equities, deposits, and corporate bonds form the core of the Belgo-Dutch HNW investorsportfolioFigure: Belgo-Dutch HNW investors will shift from cash to equities in two yearsFigure: Belgo-Dutch HNW individuals are well catered forFigure: Advisory asset management is important to Belgo-Dutch HNW investorsFigure: Advisory asset management will be preferred over discretionary asset management in twoyears timeFigure: Loan demand is low among Belgo-Dutch HNW individualsFigure: Belgo-Dutch HNW individuals will show a high demand for credit cards from private banks intwo years timeFigure: Planning services are important to Belgo-Dutch HNW individuals, but pensions are notFigure: Financial planning will become important for even more Belgo-Dutch HNW individuals in twoyears timeFigure: Belgo-Dutch HNW investors are risk averse and not open to new investments, either onshoreor offshoreFigure: Face-to-face relationship management is important to Belgo-Dutch HNW individuals, butpersonal relationships in business are less importantFigure: Belgo-Dutch HNW individuals see their relationship manager quarterlyFigure: Belgo-Dutch HNW individuals are loyal to their wealth manager, and are at low risk of leavingthemFigure: Most Belgo-Dutch HNW individuals hold 11–20% of their wealth with a single wealth managerFigure: Internal referrals are a better customer acquisition method than client or intermediary referralsin the Belgo-Dutch regionFigure: The highest single proportion of banks in Belgium operate as branches under foreign lawFigure: There are many small EU banks offering services to Dutch banking clientsFigure: ABN Amros wealth management businesses sit within retail and private bankingFigure: BNP Paribas Fortis Private Banking is found throughout BelgiumFigure: Delen Private Bank and J. Van Breda operate as independent banksFigure: Dexia has private banking offices both onshore and offshoreFigure: Dexia Private Bankings fee and commission results improved in 2010Figure: INGs private banking Belgium division sits within retail banking Benelux
  6. 6. Figure: Van Lanschots main private banking operations are in the NetherlandsFigure: Global Wealth Managers Survey 2011 geographic coverageAbout Us:ReportsnReports is an online library of over 100,000+ market research reports and in-depth marketresearch studies & analysis of over 5000 micro markets. We provide 24/7 online and offline support toour customers. Get in touch with us for your needs of market research reports.Follow us on Twitter: http://twitter.com/marketsreportsContact:Mr.Priyank7557 Rambler road,Suite727,Dallas,TX75231Tel: + 1 888 391 5441E-mail: sales@reportsandreports.comhttp://www.reportsnreports.comVisit our Market Research Blog

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