Capgemini and RBC Wealth Management are proud to introduce the first edition of the U.S. Wealth Report covering in-depth analysis of the top 12 U.S. Metropolitan Statistical Areas (MSAs) for high net worth individuals (HNWIs). Built from the World Wealth Report 2014 and its Global HNW Insights Survey, the report highlights the growth of HNWIs and their wealth in the U.S., as well as reviewing economic and market drivers behind the numbers.
World Wealth Report 2015 from Capgemini and RBC Wealth ManagementCapgemini
The World Wealth Report 2015 from Capgemini and RBC Wealth Management is the industry’s leading benchmark for tracking high net worth individuals (HNWIs), their wealth, and the global and economic conditions that drive industry change. Drawing on insights from more than 5,000 HNWI survey respondents, the report sheds light on several themes including how HNWI preferences are shifting, their approach to global asset allocation and use of cash and credit, and the evolving role of the wealth manager. Learn more about HNWI wealth and population and explore HNWI investing trends and social impact at http://www.worldwealthreport.com.
WWR 2016 - Top 10 Markets by HNWI PopulationCapgemini
HNWI population and wealth information for the top 10 (by HNWI population) markets across the globe
Meta Keywords: WWR, WWR2016, HNWI, Top markets, Top 10, HNWI Population, HNWI Wealth, World Wealth Report, HNWI Market, Wealth Management
2016 State of Hispanic Wealth Report by NAHREP Greater Las Vegas Jesse B. Lucero
WP has released its annual State of Hispanic Wealth Report. The report found that Latinos have experienced four consecutive years of homeownership growth, three straight years of income growth, and the lowest poverty rate since estimates were first published by the U.S. Census Bureau in 1972. Get your copy today!
World Wealth Report 2015 from Capgemini and RBC Wealth ManagementCapgemini
The World Wealth Report 2015 from Capgemini and RBC Wealth Management is the industry’s leading benchmark for tracking high net worth individuals (HNWIs), their wealth, and the global and economic conditions that drive industry change. Drawing on insights from more than 5,000 HNWI survey respondents, the report sheds light on several themes including how HNWI preferences are shifting, their approach to global asset allocation and use of cash and credit, and the evolving role of the wealth manager. Learn more about HNWI wealth and population and explore HNWI investing trends and social impact at http://www.worldwealthreport.com.
WWR 2016 - Top 10 Markets by HNWI PopulationCapgemini
HNWI population and wealth information for the top 10 (by HNWI population) markets across the globe
Meta Keywords: WWR, WWR2016, HNWI, Top markets, Top 10, HNWI Population, HNWI Wealth, World Wealth Report, HNWI Market, Wealth Management
2016 State of Hispanic Wealth Report by NAHREP Greater Las Vegas Jesse B. Lucero
WP has released its annual State of Hispanic Wealth Report. The report found that Latinos have experienced four consecutive years of homeownership growth, three straight years of income growth, and the lowest poverty rate since estimates were first published by the U.S. Census Bureau in 1972. Get your copy today!
Final project unlocking investment & finance in emerging markets and develo...Damian Attah
Nigeria's GDP has been growing in a slower pace compared to the population growth rate of 2.6%. The year-on-year budget deficit and the slow growth in government revenue has continued to constrain investment in critical social and physical infrastructure that will be needed to be on the path of economic growth. The ineffective fiscal framework and erosion of social trust in government spending has resulted to a tax to GDP ratio of less than 1% compared to the minimum requirement of 15% recommended for an emerging nation like Nigeria. The country's current debt profile of over $73billion and the allocation of 23% of the annual budget to debt servicing makes additional loans quite unsustainable. Funding the critical sectors that will create a transformative growth will require the crowding in of required financing from both the public and private sources and the unlocking of investment opportunities that will attract FDI, ODA and OOF finance. Posing as a government official that is exploring the option of attracting public, private and multilateral funding, the slides seeks to address the following:
(a) What are the estimated financing needs for the country’s development?
(b) Which sources of finance are available to you international and domestically, from both public and private sources?
(c) How will the country access these?
(d) How will you work with multilateral development banks to address barriers to accessing these sources of finance?
HRF CEO, Dr Brent Jenkins was guest speaker at the Business Club in October and challenged guests to play their part in collaborating to create a shared vision for the Region. If the Hunter is to be successful in meeting new economic, social, environmental and political challenges it will need to face, and address, some difficult questions.
Presentation by John Hurley, Visiting Policy Fellow Centre for Global Development and former lead US negotiator for the Addis Ababa Action Agenda at SITE Development Day 2017
Final project financing for development pamela branchPamela Branch
This is my final project for the World Bank MOOC Financing for Development. This slide show describes things I have learned during this course and discussed how remittances can contribute to public funding for the SDGs.
This Slide based on Foreign Aid, literally which cripples Foreign Aid and why it didn't work in developing countries and incentives behind to given foreign aid
The Credit Suisse Research Institute released its sixth annual Global Wealth Report, which focuses on how the middle class has developed since the turn of the century. It finds that the size and wealth of the middle class globally grew quickly before the financial crisis, but growth subsided after 2007 and rising inequality has squeezed its share of wealth in every region. In its analysis, Credit Suisse has taken a new approach to defining the middle class category, using a wealth-based definition – versus an income-based one – that allows for adjustments over time to reflect inflation, and also varies across countries depending on local purchasing power.
- Download the 2015 Global Wealth Report (PDF): http://bit.ly/1VPgIlc
- Order the print version of the 2015 Global Wealth Report: http://bit.ly/1K6hMVJ
Visit the Credit Suisse Research Institute website: http://bit.ly/18Cxa0p
Hey all!
This Presenation extensively discusses about Human Migration and its Causes,effects,Laws/Policies on a global level.
Hope it helps in developing a better understanding of this prevailing social issue.
World Wealth Report 2014 from Capgemini and RBC Wealth ManagementCapgemini
The World Wealth Report 2014 from Capgemini and RBC Wealth Management is the industry’s leading benchmark for tracking high net worth individuals (HNWIs), their wealth, and the global and economic conditions that drive change in the Wealth Management industry. Based on survey responses from more than 4,500 HNWIs, the World Wealth Report 2014 features the Global HNW Insights Survey, the industry’s most in-depth global research on HNWI preferences and behaviors.
Final project unlocking investment & finance in emerging markets and develo...Damian Attah
Nigeria's GDP has been growing in a slower pace compared to the population growth rate of 2.6%. The year-on-year budget deficit and the slow growth in government revenue has continued to constrain investment in critical social and physical infrastructure that will be needed to be on the path of economic growth. The ineffective fiscal framework and erosion of social trust in government spending has resulted to a tax to GDP ratio of less than 1% compared to the minimum requirement of 15% recommended for an emerging nation like Nigeria. The country's current debt profile of over $73billion and the allocation of 23% of the annual budget to debt servicing makes additional loans quite unsustainable. Funding the critical sectors that will create a transformative growth will require the crowding in of required financing from both the public and private sources and the unlocking of investment opportunities that will attract FDI, ODA and OOF finance. Posing as a government official that is exploring the option of attracting public, private and multilateral funding, the slides seeks to address the following:
(a) What are the estimated financing needs for the country’s development?
(b) Which sources of finance are available to you international and domestically, from both public and private sources?
(c) How will the country access these?
(d) How will you work with multilateral development banks to address barriers to accessing these sources of finance?
HRF CEO, Dr Brent Jenkins was guest speaker at the Business Club in October and challenged guests to play their part in collaborating to create a shared vision for the Region. If the Hunter is to be successful in meeting new economic, social, environmental and political challenges it will need to face, and address, some difficult questions.
Presentation by John Hurley, Visiting Policy Fellow Centre for Global Development and former lead US negotiator for the Addis Ababa Action Agenda at SITE Development Day 2017
Final project financing for development pamela branchPamela Branch
This is my final project for the World Bank MOOC Financing for Development. This slide show describes things I have learned during this course and discussed how remittances can contribute to public funding for the SDGs.
This Slide based on Foreign Aid, literally which cripples Foreign Aid and why it didn't work in developing countries and incentives behind to given foreign aid
The Credit Suisse Research Institute released its sixth annual Global Wealth Report, which focuses on how the middle class has developed since the turn of the century. It finds that the size and wealth of the middle class globally grew quickly before the financial crisis, but growth subsided after 2007 and rising inequality has squeezed its share of wealth in every region. In its analysis, Credit Suisse has taken a new approach to defining the middle class category, using a wealth-based definition – versus an income-based one – that allows for adjustments over time to reflect inflation, and also varies across countries depending on local purchasing power.
- Download the 2015 Global Wealth Report (PDF): http://bit.ly/1VPgIlc
- Order the print version of the 2015 Global Wealth Report: http://bit.ly/1K6hMVJ
Visit the Credit Suisse Research Institute website: http://bit.ly/18Cxa0p
Hey all!
This Presenation extensively discusses about Human Migration and its Causes,effects,Laws/Policies on a global level.
Hope it helps in developing a better understanding of this prevailing social issue.
World Wealth Report 2014 from Capgemini and RBC Wealth ManagementCapgemini
The World Wealth Report 2014 from Capgemini and RBC Wealth Management is the industry’s leading benchmark for tracking high net worth individuals (HNWIs), their wealth, and the global and economic conditions that drive change in the Wealth Management industry. Based on survey responses from more than 4,500 HNWIs, the World Wealth Report 2014 features the Global HNW Insights Survey, the industry’s most in-depth global research on HNWI preferences and behaviors.
This year’s spotlight on how wealth management firms look to scalable business models to drive
profitable growth and bolster client relationships also has significant resonance for RBC Wealth
Management as we continue to execute our strategy for global growth.
2018 State of Hispanic Wealth Report by NAHREP Greater Las Vegas Jesse B. Lucero
WP has released its annual State of Hispanic Wealth Report. The report found that Latinos have experienced four consecutive years of homeownership growth, three straight years of income growth, and the lowest poverty rate since estimates were first published by the U.S. Census Bureau in 1972. Get your copy today!
Capgemini and RBC Wealth Management look at the behavior of HNWIs and the responses of wealth management providers in 11 core markets: Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, Singapore, South Korea, Thailand, and Taiwan in the Asia-Pacific Wealth Report. Visit our website at www.asiapacificwealthreport.com.
2019 State of Hispanic Wealth Report by NAHREP GREATER LAS VEGASJesse B. Lucero
HWP has released its annual State of Hispanic Wealth Report. The report found that Latinos have experienced four consecutive years of homeownership growth, three straight years of income growth, and the lowest poverty rate since estimates were first published by the U.S. Census Bureau in 1972. Get your copy today
The fifth annual Global Wealth Report 2014 by the Credit Suisse Research Institute finds that from mid-2013 to mid-2014 aggregate global household wealth increased by 8.3% in current dollar terms to USD 263 trillion, despite an ongoing challenging economic environment. The analysis comprises the wealth holdings of 4.7 billion adults across more than 200 countries – from billionaires in the top echelon to the middle and bottom sections of the wealth pyramid, which other studies often overlook.
- Download the 2014 Global Wealth Report (PDF): http://bit.ly/1syUAv8
- Order the print version of the 2014 Global Wealth Report: http://bit.ly/11iQ1uL
Visit the Credit Suisse Research Institute website: http://bit.ly/18Cxa0p
COVID-19 heightened chronic challenges within the global healthcare industry. It became a catalyst amid fierce competition and tight regulations for health providers and payers to focus on digital health, cybersecurity, patient data transparency, and a variety of customer-centric and operational enhancements. As a result, we found the 2022 trendline pointing to improvements in access and quality of care.
Healthcare challenges such as optimizing the cost of care while simultaneously enabling personalized interventions and consumer-friendly shoppable services are long-standing − but, historically, the industry has been slow to react.
Read our Top Trends 2022 report to examine the lingering ramifications of the pandemic, responses from medical and insurance organizations, and the worldwide impact of ever-changing regulatory standards and mandates.
A combination of factors − the pandemic, catastrophic weather events, evolving policyholder expectations, and insurers’ drive for operational efficiency and future relevance − are sparking P&C industry changes.
In a post-COVID, new-normal environment, the most strategic insurers are building resilient, crisis-proof enterprises poised to take advantage of emerging and future business opportunities. They are leveraging advanced data analytics and novel technologies to assure agility and achieve positive revenue and customer satisfaction outcomes. Competitive advantage will hinge on accelerated digitalization and faster go-to-market. Therefore, win-win partnerships and embedded services with InsurTechs and other ecosystem players are critical.
Read Capgemini’s Top P&C Insurance Trends 2022 for a glimpse at the tactical and strategic initiatives carriers are undertaking to boost customer-centricity, product agility, intelligent processes, and an open ecosystem to ensure profitable growth and future-readiness.
This analysis provides an overview of the top trends in the commercial banking sector as they shift to technology high gear to boost client efficiency and battle a volatile, uncertain, competitive, and evolving landscape.
First, it was retail banking. Now, advanced technology is shifting to – and disrupting − the commercial banking space. Many commercial banks, known for paperwork, red tape, and branch dependency, were unprepared to support clients during their post-COVID-19 ramp-up. But now, the digital pivot to new mindsets, partnerships, and processes is in overdrive.
As commercial banks grapple with competition from FinTechs, BigTechs, and alternative lenders, their inability
to fulfill SME demands and pandemic after-shocks necessitates transformative process changes and a move
to experiential, sustainable, and inclusive banking models. We expect banks to strive to meet the demands
of corporate clients and SMEs by digitally transforming critical workflows and improving client experience.
Additionally, incremental process improvements in the middle and back-office that leverage intelligent
automation will keep the competition at bay because engaged clients are loyal.
Adopting newer methods to mine data and moving to as-a-Service models will prepare commercial banks
to flexibly respond to newcomers and find ways to co-exist through effective collaboration. The time has come for commercial banks to put transformation on the fast track as lending losses in wallet and market share could spill over to other functions!
How incumbents react and respond to 2022 trends could determine their relevancy and resiliency in the years ahead.
The Covid-19 pandemic necessitated the payments industry undergo a facelift, sparked by novel approaches from new-age players, fostered by industry consolidation, and customers’ demand for end-to-end experience. Crossing the threshold, the industry is entering a new era – Payments 4.X, where payments are embedded and invisible, and an enabling function to provide frictionless customer experience. As customers make a permanent shift to next-gen payment methods, Digital IDs are critical for a seamless payment experience. The B2B payments segment is witnessing rapid digitization. BigTechs, PayTechs, and industry newcomers are ready to jump in with newfangled solutions to help underserved small to medium-sized businesses (SMBs).
As incumbents struggle with profits, new-age firms are forging ahead to take the lead in the Payments 4.X era by riding the success of non-card products and services. The new era demands collaboration, platformification, and firms can unleash full market potential only by embracing API-based business models and open ecosystems. Data prowess and enhanced payment processing capabilities are inevitable to thrive ahead. The clock is ticking for banks and traditional payments firms because the competitive advantage is not guaranteed forever. As industry players seek economies of scale, consolidations loom, and non-banks explore new territories to threaten incumbents’ market share. While all these 2022 trends are at play, central bank digital currency (CBDC) is emerging globally and might open a new chapter in the current payments landscape.
As we slowly move out of the pandemic, financial services firms have learned the criticality of virtual engagement to business resilience. Wealth management firms will need capabilities to cater to new-age clients and deliver new-age services. This report aims to understand and analyze the top trends in the Wealth Management industry this year and beyond.
A year ago, our Top Trends in Wealth Management report emphasized how the pandemic sparked disruption and digital transformation and changing investor attitudes around Environmental, Social, and Corporate Governance (ESG) products. As we begin 2022, many of those trends continue to hold as COVID-19’s wide-reaching effects continue to influence the wealth management industry.
As wealth management (WM) firms supercharge their digital transformation journeys, investments in cybersecurity and human-centered design are becoming critical to building superior digital client experience (CX). Another holdover trend − sustainable investing – is gaining mainstream attention and generating increasingly sophisticated client demands. Data and analytics capabilities will become ever more essential for ESG scoring and personalized customer engagement. As large financial services firms refocus on their wealth management business while new digital players make industry strides, competition is becoming historically intense. Not surprisingly, client experience is the new battleground.
This analysis provides an overview of the top trends in the retail banking sector driven by the competition, digital transformation, and innovation led by retail banks exploring novel ways to create and retain value in evolving landscape.
COVID-19 caught banks off guard and shook legacy mindsets to the core. With 20/20 (2020) hindsight, firms are more aware, digitally resilient, and financially stable as they head into 2022. The trials of the past 18 months forced firms to shore up existing business and consider new models and revenue streams.
Customer-centricity remains at the top of most FS agendas and is a 2022 focal point. Banks will focus on achieving operational excellence as diligently as delivering superior CX. In 2022 and beyond, it will be paramount for FIs to explore and invest in new technologies to remain relevant and resilient.
Banking 4.X will arrive in full force in 2022 with platform-supported firms monetizing diverse ecosystem capabilities and aggressively harvesting data to create experiential customer journeys through intelligent and personalized engagements. The new era will compel future-focused banks to finally abandon legacy infrastructure and collaborate with third-party specialists to solidify their best-fit, long-term roles. Increasingly, open platforms will make banks invisible as banking becomes embedded into customer lifestyles. At the same time, banks will shed asset-heavy models and shift to the cloud for greater agility, speed to market, and faster innovation. The shift will act as a precursor to adopting new technologies on the horizon – 5G and Decentralized Finance.
The recent past was filled will extraordinary lessons for financial institutions. Now is the time to act on those learnings and move forward profitably.
While COVID-19 has sparked the demand for life insurance, it has also exposed the operating model vulnerabilities in distribution, servicing, and customer retention. In a post-COVID, new-normal environment, insurers need to enhance their capabilities around advanced data management and focus on seamless and secure data sharing to provide superior CX and hyper-personalized offerings. Accelerated digitalization and faster go-to-market are vital to remaining competitive, and win-win partnerships with ecosystems are critical in the journey.
Read our Top Life Insurance Trends 2022 to explore the tactical and strategic initiatives carriers undertake to acquire competencies around customer centricity, product agility, intelligent processes, and an open ecosystem to ensure profitable growth and future readiness.
Property & Casualty Insurance Top Trends 2021Capgemini
The Property & Casualty insurance landscape is evolving quickly with the changing risk landscape, entry of new players, and changing customer expectations. The ripple effects of COVID-19 on the P&C insurance industry and natural disasters such as forest fires have adversely impacted insurance firm books.
In this scenario, to ensure growth and future-readiness, the most strategic insurers strive to be ‘Inventive Insurers’ – assuming a customer-centric approach, deploying intelligent processes, practicing business resilience and go-to-market agility, and embracing an open ecosystem.
Read our Property & Casualty Insurance Top Trends 2021 report to explore the strategies insurers are adapting to remain competitive amidst the evolving business landscape and how they can explore new ways to enhance their profitability.
A combination of factors such as demographic changes, evolving consumer preferences, and desire to become operationally efficient were already spurring changes in the life insurance industry. Enter 2020 – the COVID-19 pandemic is having a significant impact on the industry.
At the peak of disruption, the focus was on ensuring business continuity, but new initiatives are cropping up to tackle the challenges as the industry is adapting to the new normal.
Furthermore, COVID-19 has acted as a catalyst, pushing life insurers to prioritize their efforts on improving customer centricity, developing go-to-market agility, making processes intelligent, building business resilience, and embracing the open ecosystem.
Read our Life Insurance Top Trends 2021 report to explore the strategies insurers are adopting to manage the changing market dynamics.
The uncertainty of 2020 is setting the global tone for the immediate future in the financial services industry. So it is no surprise banks are laser-focused on business resilience, emphasizing both financial and operational risks. The need to adapt quickly to new normal conditions through virtual customer engagement is clear.
Customer centricity continues to drive commercial banks’ solution designs. And, the pandemic compelled products that deliver immediate client value ‒ quick digital onboarding, seamless lending, and support for small and medium-sized enterprises (SMEs). The onus is now on banks to go to market more quickly, which requires the implementation of intelligent processes and integrating corporates’ enterprise resource planning (ERP) systems with banking workflows.
To achieve go-to-market agility, banks across the globe are investing in and collaborating with FinTechs. Many of these partnerships are focused on boosting digital lending and providing seamless support to anxious small-business clients in need of assurance.
With newfound impetus for FinTech collaboration, commercial banks have picked up their step on the path toward OpenX. COVID-19 made it evident that survival during turbulence is manageable through collaboration with ecosystem players.
Read our Top Trends in Commercial Banking 2021 report to explore the strategies banks are adapting to transform their businesses from a product-led, siloed model to an experiential and agile plan.
When we published the Top Trends in Wealth Management 2020, little did we foresee the pandemic that would sweep through the world and disrupt life as we knew it. Yet, when we reviewed last year’s trends, we found that many still hold and some have taken on even greater relevance. One such trend is sustainable investing, which had begun to gain prominence as investors became more aware of ESG considerations, and firms rolled out more sustainable investing offerings. Another trend that has accelerated in the post-COVID world is the importance of investing in omnichannel capabilities and technologies such as artificial intelligence (AI) to enhance personalization and advisor effectiveness. The pandemic has driven wealth management firms to accelerate their digital transformation journey, with some immediate focus areas being interactive client communications and digital advisor tools.
There is no denying that time is of the essence. Yes, budgets are tight, but the Open X ecosystem offers wealth management firms opportunities to reimagine their operating models and deliver excellent customer experience cost-effectively.
Top trends in Payments: 2020 highlighted the payments industry’s flux driven by new trends in technology adoption, innovative solutions, and changing consumer behavior. The pandemic has tested the digital mastery of players, who are already grappling with transition. Non-cash transactions are on a robust growth path, accelerated by increased adoption during COVID-19. Regulators are working to instill trust and address non-cash payments risk amid unparalleled growth as players collaborate to quell uncertainty. Regional initiatives, such as the P27 (Nordics real-time payments system) and the EPI (European Payments Initiative), are gaining traction in response to country-level fragmentation and competition.
Investment in emerging technologies is looked upon as an elixir to mitigate fraud, data-driven offerings are being considered for providing value-added propositions, and distributed ledger technology is in focus for digital currency solutions, efficiency enhancement, and cost gains. New players, such as retailers/merchants, are integrating payments into their value chains while technology giants are upscaling their financial services game by weaving offerings around payments as a center stage. Constrained by budgets, firms consider business models such as Platform-as-a-Service (PaaS) to provide cost-effective and superior customer experience.
A combination of factors, including demographic changes, evolving consumer preferences, and regulatory and compliance mandates, were already spurring change in the health insurance industry. Enter 2020 and the COVID-19 pandemic, which is having sweeping implications for the industry.
At the peak of disruption, the focus was on ensuring business continuity, but new initiatives are cropping up to tackle the challenges as the industry adapts to the new normal.
Furthermore, some changes are here to stay, and it will be prudent for the industry players to be resilient to the market shifts by being agile, improving member centricity, making processes intelligent, and embracing the open ecosystem.
Read our Health Insurance Top Trends 2021 report to explore the strategies insurers are adopting to manage the external pressures.
The banking industry’s resilience is being tested as banks navigate through a remarkable 2020 filled with uncertainties. The impact of COVID-19 has been about setting the tone for future operational models. Retail banks have shifted focus towards integrated risk management with a more holistic view of operational risks. Adapting to the new normal, banks have prioritized cost transformation while engaging customers virtually. Incumbents sought to be more responsible within fast-changing environmental conditions and ESG remained a critical focus.
To provide more experiential services, banks are leveraging techniques such as segment-of-one to hyper-personalize offerings while aiming to humanize digital channels for increased engagement. Banks are also revamping middle and back offices, going beyond the front end leveraging intelligent processes. Open X is enabling banks to play on their strengths and use the expertise of ecosystem players. Going forward, banks are poised to become an enhanced one-stop shop by providing consumers value-adding FS and non-FS experiences.
To acquire customers in cost-effective manner, retail banks are tapping value-based propositions ‒ such as POS financing and mortgage refinancing. Further, Banking-as-Service provides incumbents a way to provide their high-value offerings to other players. In preparation for the future, banks will be looking to improve their go-to-market agility by leveraging the benefits of cloud. This analysis outlines the top 10 trends in retail banking for 2021.
Explore how Capgemini’s Connected autonomous planning fine-tunes Consumer Products Company’s operations for manufacturing, transport, procurement, and virtually every other aspect of the supply-value network in a touchless, autonomous way.
Financial services is undergoing a paradigm shift that is forcing incumbent retail banks to rethink growth strategies as they struggle to remain relevant. Growing competition from BigTechs, FinTech firms, and challenger banks has added to the complexity created by increasingly stringent regulatory and compliance requirements. Customers now expect a seamless customer journey and personalized offerings because they have become accustomed to top-notch individualized service from GAFA giants Google, Apple, Facebook, and Amazon. The changing ecosystem offers established banks new, unexplored opportunities and encourages a transition beyond traditional products to meet the exacting requirements of today’s customers. Bank collaboration with FinTech and RegTech partners is becoming commonplace. Incumbents are exploring point-of-sale financing and unsecured consumer lending, while they also boost their digital channel competencies to reach a broader customer base. Banks are beginning to accept open APIs and are working with third-party specialists to create an open shared marketplace. Technological advancements such as AI are fueling efforts to evolve customer onboarding and touchpoint processes. Increasingly, banks are turning to design thinking methodology to understand the customer journey, extract deep insights, and develop a more refined user experience across the customer lifecycle.
Our analysis of the top retail banking trends for 2020 offers a glimpse into the fast-changing banking ecosystem and explores the tools and solutions being used to face new-age challenges.
Aspects of the life insurance industry have remained constant for years – and so have premiums. Traditional savings products have taken a huge hit in terms of attractiveness because low interest-rates prevail. Meanwhile, the risk landscape is shifting, and insurers need to align better with the emerging business environment, manage changing customer preferences, and improve operational efficiencies. Within today’s scenario, industry players are undertaking tactical and strategic shifts in attempts to manage unpredictable market dynamics. Insurers must develop alternative products to breathe new life into policies and leverage emerging technologies (artificial intelligence (AI), analytics, and blockchain) to improve efficiency, agility, flexibility, and customer-centricity.
Read Top Trends in Life Insurance: 2020 for a look at the innovative steps future-focused insurers are considering to meet industry challenges and opportunities.
The health insurance industry is evolving and undergoing significant changes. As the risk landscape shifts, insurers are working to improve operational efficiencies, meet evolving customer preferences, and align better with the changing business environment. Accordingly, payers must adapt and align business models and offerings. An incisive tactical approach is required to accommodate members’ needs and related emerging risks — medical, health, and environmental. Advanced technologies such as artificial intelligence, analytics, automation, and connected devices are enabling insurers to manage these changes proactively, partner with members, and help to prevent risks, all the while continuing to fulfill payer responsibilities.
Read Top Trends in Health Insurance: 2020 to learn which strategies insurers are adopting to navigate and align with today’s challenges.
Similar to other financial services domains, payments is evolving into an open ecosystem. The EU’s Payment Services Directive (PSD2) pioneered open banking by encouraging banks and established payments players to securely open the systems to foster competition, innovation, and more customer choices. In tandem with non-cash transaction growth, regulations are driving banks and payments firms to expand their array of payment methods and channels. Governments are encouraging financial inclusion by also promoting the adoption of non-cash payments. Increasingly, merchants and corporates seek to offer alternative payment systems because of widespread popularity among consumers. Alternative payments also enable merchants to provide real-time and cross-border payments to boost business efficiency.
Banks, payment firms, card firms, BigTechs, FinTechs, and other players are continuously developing new technology to cash in on market changes. However, data breaches and fraud continue to hinder innovation as firms devote countless resources each year to address security issues. Many governments are also designing new regulations to reduce ecosystem threats. All these measures are expected to make the current ecosystem much more secure and simple for players as well as customers.
Top Trends in Payments: 2020 explores and analyzes payments ecosystem initiatives and solutions for this year and beyond
Seminar: Gender Board Diversity through Ownership NetworksGRAPE
Seminar on gender diversity spillovers through ownership networks at FAME|GRAPE. Presenting novel research. Studies in economics and management using econometrics methods.
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
2. Executive Summary 5
U.S. HNWI Wealth Grows by Record Amounts 6
–– Many Top 12 MSAs Drive U.S. HNWI Wealth Growth 6
–– Ultra-HNWIs Outperform All Other U.S. HNWI Segments 8
–– New Patterns of Domestic Wealth Creation Emerge 8
U.S. Economic Recovery in 2013 Set Stage for Record Wealth Growth 10
–– Improved Fundamentals Fuel Optimistic Outlook 10
–– Positive Sentiment Spurs Major Gains in Equity Markets, Real Estate Prices 11
–– Economic Performance Improves in Most Large Cities 12
Increased Trust Propels Growth-Focused Investing 13
–– Driven by East Coast HNWIs, U.S. HNWI Trust and Confidence Levels Increase 13
–– Focus on Growth Pervades Asset Allocation 15
–– Younger U.S. HNWIs Present New Challenges 16
Driving Social Impact Gains Momentum among Younger U.S. HNWIs 20
–– U.S. HNWIs Place High Importance on Driving Social Impact 20
–– Younger and Female U.S. HNWIs Place Greater Importance on Driving Social Impact 21
–– U.S. HNWIs, across Age Groups, Indicate Social Impact Service Gap 22
Appendix 24
Acknowledgements 25
About Us 26
3. Capgemini and RBC Wealth Management are pleased to present the first United States (U.S.) Wealth Report, which
adds to our ongoing wealth-focused joint thought-leadership reports, including the World Wealth Report and the
Asia-Pacific Wealth Report. The U.S. Wealth Report 2014, presented in four parts, offers an in-depth examination of
historical and current trends in the wealth patterns of high net worth individuals (HNWIs1
) in the U.S. and the drivers
behind their wealth.
Our report also measures the levels of trust and confidence U.S. HNWIs have in the wealth management firms that
serve them, tracks shifts in HNWI investment preferences over the years, and assesses HNWI attitudes toward digital
channels. Finally, our report examines HNWI approaches to driving social impact, highlighting attitudinal shifts that
may have implications for firms striving to meet the needs of their socially conscious clients.
Findings of the report come from an in-depth survey of HNWIs across the country conducted in January and February
of this year. The Global HNW Insights Survey we created and executed in collaboration with Scorpio Partnership
generated responses from more than 1,000 HNWIs across the U.S.
Our first report on U.S. HNWI wealth depicts a story of growth. The U.S. economy and market sentiment grew
steadily, as did U.S. HNWI trust in all aspects of the wealth management industry, both of which energized risk
appetites in 2013. The improved investor sentiment helped generate record growth in the population and wealth of U.S.
HNWIs, much of which could be traced to economic activity in the top 122
metropolitan statistical areas (MSAs)3
of
the country and strong performance by the ultra-HNWI4
segment.
While the picture of growth in this year’s report is positive, there are signals that wealth management firms may need to
work harder to continue to win the favor of younger U.S. HNWIs. While wealth management firms today are reaping
the benefits of expanding HNWI population and wealth, they cannot afford to ignore impending shifts in HNWI
attitudes and preferences as younger HNWIs gain prominence.
Consider our first-ever report on the U.S. wealth management industry to be a critical tool in helping you understand
the HNWI market. We hope that this report will leave you better prepared for developing effective strategies.
Preface
Jean Lassignardie
Global Head of Sales and Marketing
Global Financial Services
Capgemini
M. George Lewis
Group Head
RBC Wealth Management & RBC Insurance
Royal Bank of Canada
1
HNWIs are defined as those having investable assets of US$1 million or more, excluding primary residence, collectibles, consumables, and consumer durables
2
Ranked by 2013 HNWI population
3
Metropolitan statistical areas (MSAs) are geographic entities defined by the U.S. Office of Management and Budget (OMB). In our analysis, we will abbreviate to “metro areas” and
“cities”, but in all cases we are referring to MSAs as defined by the OMB, which generally include the named city as well as many important neighboring counties
4
For the purpose of our analysis, we separate HNWIs into three discrete wealth bands: those with US$1 million to US$5 million in investable wealth (millionaires next door); those with
US$5 million to US$30 million (mid-tier millionaires) and those with US$30 million or more (ultra-HNWIs)
4.
5. Wealth Grows by Record Amounts
ƒƒ U.S. HNWI wealth and population grew to record levels
of 4.0 million and US$13.9 trillion in 2013.
ƒƒ Strong performance of the ultra-HNWI segment and
many of the top 12 MSAs drove the overall U.S. HNWI
wealth and population growth in 2013.
ƒƒ Dynamic cities of Houston, Dallas, and San Jose with
ties to fast-growing industries like technology and
energy have helped spur HNWI wealth growth since
2008.
Increased Trust Propels Growth-Focused
Investing
ƒƒ The U.S. HNWI trust in the wealth management
industry and landscape, increased by double-digit
points in Q1 2014, placing the U.S. higher than most of
its developed-country peers.
ƒƒ Increased trust levels led to greater risk appetite as U.S.
HNWIs indicated increased allocations to alternative
and foreign investments in Q1 2014.
ƒƒ In line with high trust levels, U.S. HNWIs
scored their wealth managers very high in terms
of performance, but the overall scores dropped
from 2013.
ƒƒ Younger HNWIs in the U.S. had higher preference levels
for digital contact over direct contact and they also
showed a higher propensity to leave in the absence of
integrated channel experience being provided by their
wealth management firm.
U.S. Economic Recovery in 2013 Set Stage
for Record Wealth Growth
ƒƒ Healthier economic sentiment in 2013 paved the
way for record HNWI population and wealth growth
in the U.S.
ƒƒ Investors embraced the more positive outlook and
enhanced risk appetite as the U.S. equity
markets and real estate markets witnessed significant
gains in 2013.
ƒƒ Houston, Dallas, and San Jose performed strongly on
most economic and market parameters, while Detroit’s
performance was below par.
Driving Social Impact Important, Especially
Among Younger U.S. HNWIs
ƒƒ Driving social impact is important to U.S. HNWIs of all
wealth levels, ages, genders, and geographies, with
88% describing it as important and over half describing
it as very or extremely important.
ƒƒ Younger and female HNWIs in the U.S. are more
likely to invest time, money and expertise in social
causes, as they indicated higher importance for driving
social impact.
ƒƒ Even though younger U.S. HNWIs had higher
expectations of support compared to their older
counterparts (88.0% vs. 43.6%), they were the most
satisfied with the level of social impact support
received.
Executive Summary
Executive Summary
The findings of our report are organized into the following
four themes.
52014 UNITED STATES WEALTH report
Get the full story at
www.us-wealthreport.com
6. 6 2014 UNITED STATES WEALTH report6
HNWI wealth thrived in the country’s largest MSAs. Most
wealth was concentrated within the top 12 metropolitan
areas, where 69% of HNWIs reside and hold assets
representing 75% of the country’s HNWI wealth. Eight of
the top 12 cities had above-average advances in HNWI
wealth in 2013, helping to drive overall growth in the U.S.
New York City remains the epicenter of U.S. HNWI
wealth. As home to US$3.2 trillion, it far exceeds the
US$1.2 trillion that resides in Los Angeles, the second-
largest MSA. Overall, New York accounted for 23.3% of
U.S. HNWI wealth and 6.2% of global HNWI wealth,
while Los Angeles made up 8.6% and 2.3% of U.S. and
global HNWI wealth, respectively. Despite its size, New
York was one of only three cities out of the top 12 to
experience wealth growth that was less than the
U.S. average.
Many Top 12 MSAs Drive U.S. HNWI Wealth Growth
The after-effects of the financial crisis subsided in 2013, as
U.S. HNWIs registered record leaps in wealth and
population, affirming the strength of the rebound in U.S.
economic sentiment and financial markets.
The ranks of U.S. HNWIs grew at the fastest rate since
our coverage began in the 1990s (16.6%), adding 600k to
bring the total number to a record 4.0 million (see Figure
1). The wealth of HNWIs increased US$2.1 trillion in
2013–which was also the largest by far since our study
began, signaling lasting movement away from the
debilitating impact of the financial crisis. This increase in
wealth represented a growth rate of 17.7%, pushing
HNWI wealth to a record total of US$13.9 trillion (see
Figure 2).
ƒƒ Continued economic recovery in the U.S. propelled
wealth and population growth to record levels in
2013. U.S. HNWI population and wealth expanded at
their fastest rates since the World Wealth Report began
in 1997: HNWI population grew by 16.6% to 4.0 million,
and wealth by 17.7% to a record US$13.9 trillion.
ƒƒ Robust economic activity in many of the top 12
MSAs and strong performance by ultra-HNWIs
drove HNWI wealth and population growth. Eight of
the top 12 cities registered above-average HNWI wealth
growth in 2013. In addition, U.S. ultra-HNWIs
outperformed other HNWI segments in the U.S.,
increasing their ranks by 18.6% and their wealth
by 19.8%.
ƒƒ Dynamic cities with ties to fast-growing industries
like technology and energy have helped spur HNWI
wealth growth since 2008. While the top five cities for
HNWI population remained the same, three of the four
fastest-growing metro areas for HNWI population and
wealth are the dynamic markets of Houston, Dallas, and
San Jose. The growth pattern to emerge since 2008
signals greater diversity in the geographies and
industries contributing to U.S. wealth creation.
U.S. HNWI Wealth Grows by
Record Amounts
7. 72014 UNITED STATES WEALTH report
Figure 1. U.S. and Top 12 MSA HNWI Population, 2008–2013
(000s)
0
1000
2000
3000
201320122011201020092008
562
208
172
128
121
68
69
63
75
88
236
667
198
152
138
102
104
720
257
212
164
147
110
110
97
727
256
212
166
148
110
109
99
797
288
235
191
175
125
118
111
107
94
97
894
330
264
221
199
148
136
131
122
113
108
2.5MU.S. Total 2.9M 3.1M 3.1M 3.4M 4.0M U.S.
Top 12 MSAsMSA Total
16.6%
14.1%
U.S. CAGR 2008–2013: 10.2% % Change 2012−2013
1.7M 2.0M 2.2M 2.2M 2.4M 2.8M
89
87
79
50
88
86
77
89
61
89
87
92
66
91
84
90
69
FIGURE 1. U.S. and Top 12 MSA HNWI Population, 2008–2013
(US$ Trillion)
Houston 18.0%
Philadelphia 14.7%
Seattle 16.9%
Detroit 11.4%
San Jose 14.3%
Dallas 20.0%
Los Angeles 14.4%
New York 12.2%
Boston 17.8%
San Francisco 14.0%
Chicago 12.6%
Washington D.C. 15.6%
Number of
HNWIs
Note: The totals for all years are expressed in millions and the 000s in the chart title do not apply to those numbers; Chart numbers and quoted percentages may not add up
due to rounding
Source: Capgemini Financial Services Analysis, 2014
Figure 2. U.S. and Top 12 MSA HNWI Wealth, 2008–2013
(US$ Billion)
0
3000
6000
9000
12000
201320122011201020092008
1,931
729
654
475
417
327
329
242
241
245
308
184
315
297
308
349
225
317
361
246
321
350
260
307
233
834
2,316
761
573
378
483
399
2,540
926
834
625
523
404
435
356
341
2,549
916
836
639
513
403
430
2,800
1,015
929
742
601
459
465
408
369
381
3,241
1,198
1,079
886
707
558
550
496
457
449
US$8.4TU.S. Total US$9.9T US$10.8T US$10.5T US$11.8T US$13.9T U.S.
Top 12 MSAs
17.7%
17.7%
U.S. CAGR 2008–2013: 10.5% % Change 2012−2013
US$6.1T US$7.2T US$7.9T US$7.9T US$8.8T
Houston 21.7%
Philadelphia 18.4%
Seattle 18.1%
Detroit 15.0%
Dallas 23.8%
San Jose 17.9%
Los Angeles 18.0%
New York 15.8%
Boston 21.6%
San Francisco 17.7%
Chicago 16.2%
Washington D.C. 19.3%
HNWI
Investable
Wealth
US$10.4T
323
369
375
431
MSA Total
FIGURE 2. U.S. and Top 12 MSA HNWI Wealth, 2008–2013
(US$ Billion)
Note: The totals for all years are expressed in US$ trillion and the US$ billion in chart title does not apply to those numbers; Chart numbers may not add up due to rounding
Source: Capgemini Financial Services Analysis, 2014
U.S. HNWI Wealth Grows by Record Amounts
8. 8 2014 UNITED STATES WEALTH report
New York also has the highest number of HNWIs. Its
HNWI population of 894k is almost three times the size of
second-place Los Angeles, with 330k HNWIs. Yet New
York had the second-lowest HNWI population growth rate
(12.2%), beating out only Detroit (11.4%), which filed for
the largest municipal bankruptcy in U.S. history in 2013,
likely limiting HNWI growth. New York’s performance
contrasts with that of its East Coast peer, Boston, which
experienced the third-fastest HNWI population growth
after Dallas and Houston, and benefited from more-than-
double real estate growth compared to New York.
The Texas cities of Dallas and Houston were standouts.
They recorded the most aggressive rates of HNWI wealth
growth, both in 2013 and over the last five years. Dallas
and Houston were also the largest gainers in HNWI
population, aided by strong growth in gross metropolitan
product, personal income, and real estate (see page 12 for
more details). On the strength of its 20.0% HNWI
population growth, Dallas entered into the ranks of the top
10 for the first time, pushing out Detroit.
Ultra-HNWIs Outperform All Other U.S. HNWI
Segments
Ultra-HNWIs in the U.S. expanded their ranks and their
wealth more than any other HNWI segment. Their
population grew 18.6% and their wealth grew by 19.8% in
2013, driving growth throughout the country and even
impacting growth at a global scale. Though this wealth
band comprises only 1.2% of the total population of U.S.
HNWIs, it accounts for 27.9% of U.S. HNWI wealth.
Globally, this band controls more than 7% of all HNWI
wealth, compared to only 2.3% and 0.9% for ultra-
HNWIs in Germany and Japan respectively, the second-
and third-ranked markets by overall HNWI population.
“Mid-tier millionaires”, with between US$5 million and
US$30 million in assets, make up 9.2% of the total
HNWI population in the U.S. and hold 24.2% of its
wealth. Their rates of population (17.5%) and wealth
(17.6%) growth lagged behind ultra-HNWIs by 1.1 and
2.2 percentage points, respectively. The “millionaires next
door”, with between US$1 million and US$5 million in
assets, represent 89.6% of the U.S. HNWI population and
47.9% of its wealth. Continuing a trend, the population
and wealth of this wealth band grew by one percentage
point less than the mid-tier millionaires.
New Patterns of Domestic Wealth
Creation Emerge
With HNWI wealth mostly concentrated along the
country’s East and West Coasts, the recent strong growth
in Dallas and Houston represents a departure from the
norm. Propelled by expanding oil production, and ample
land in Texas, both cities recorded the strongest rates of
growth of the 12 largest cities in gross metropolitan
product and personal income in 2013 (see page 10 for a
more detailed overview of economic factors on HNWI
population and wealth growth). This performance,
combined with a climb in property prices of about 10% in
both markets, as well as strong U.S. equity market results,
pushed the two cities, along with Boston and Seattle, to
HNWI population growth that was higher than the
U.S. average.
A new pattern of wealth creation in the U.S. appears to
have emerged over the five years from 2008 to 2013. Three
of the four fastest-growing cities in HNWI population and
wealth are the dynamic cities of Dallas, Houston, and San
Jose (see Figure 3). Each features strong local economies
built upon fast-growing industries–energy for Dallas and
Houston, and software and technology for San Jose.
Ranked at the bottom of the top-ten cities in terms of
HNWI population, they are not yet threatening to break
into the top five (New York, Los Angeles, Chicago,
Washington D.C., and San Francisco), which have held the
same rank at the head of the pack every year since 2008.
Yet the emergence of the fast-growing smaller cities
indicates that U.S. wealth creation is shifting to include a
broader mix of geographies and industries.
9. 92014 UNITED STATES WEALTH report
Figure 3. HNWI Population and Wealth Compounded Annual Growth Rates (CAGRs) for Top 12 U.S. MSAs,
2008–2013
(%)
4%
4%
8%
Detroit
San Jose
Seattle
San Francisco
Boston
New York
PhiladelphiaChicago
Los Angeles
Dallas
Houston
Washington D.C.
8%
12%
U.S. Average (10.2%)
U.S. Average (10.5%)
12%
16%
16%
Sample bubble
= US$1trillion
Below-average growthAverage growthAbove-average growth
HNWI
Population
2008–2013
CAGR
HNWI Wealth 2008–2013 CAGR
FIGURE 3. HNWI Population and Wealth Compounded Annual Growth Rates (CAGRs) for Top 12 U.S. MSAs, 2008–2013
(%)
Note: Size of the bubble represents HNWI wealth in 2013
Source: Capgemini Financial Services Analysis, 2014
U.S. HNWI Wealth Grows by Record Amounts
10. 10 2014 UNITED STATES WEALTH report
GDP contracting by 2.9% (annualized rate) in the first
quarter, as per the initial estimates, it rebounded strongly
in second quarter of 2014 to grow by 4.0%.6
Unemployment in the U.S. has been dropping steadily
since 2010, helped especially by job creation in the retail
and construction sectors, as well as changes in the labor
force structure. Ten of the top 12 metropolitan areas in the
U.S. increased employment, with the California cities of
San Jose, San Francisco, and Los Angeles experiencing
some of the biggest turnarounds, with unemployment rates
decreasing by 1.7, 1.6, and 1.2 percentage points,
respectively. Only Boston and Chicago saw unemployment
rise by 0.1 and 0.3 percentage points, respectively.7
Improved Fundamentals Fuel Optimistic Outlook
U.S. HNWI wealth grew at record levels in 2013, against a
backdrop of strengthening fundamentals and a return to
normal levels in equity valuations, with room for further
growth. With the U.S. gross domestic product maintaining
steady growth, unemployment coming down, the deficit
dropping, and oil production rising, many of the elements
essential for a continued economic recovery fell into place.
The interplay of these developments contributed to rising
risk appetite during 2013, fueling enormous gains in the
U.S. equity markets and laying the groundwork for
accelerated wealth growth throughout the U.S.
U.S. GDP expanded by a modest 1.9% in 2013, aided by
strong third-quarter growth of 4.1% (see Figure 4).
Increased private sector spending helped propel GDP
growth, while reduced government spending constrained
it. Economic sentiment improved throughout the year, as
investors focused on the strong performance by the private
sector. Corporate profits after taxes hit historical highs in
2013, putting them well above pre-recession5
levels. More
recently, while 2014 did not start on a good note with U.S.
ƒƒ Healthier economic sentiment in 2013 paved the
way for record HNWI population and wealth growth
in the U.S. The favorable environment featured a
surging risk appetite, decreasing unemployment, a
continuation of the U.S. energy renaissance, and a
sharply lower fiscal deficit.
ƒƒ Investors embraced the more positive outlook as
the equity markets surged and real estate prices
increased. The MSCI U.S. index rose by 29.9% in
2013, the biggest annual gain since 1997.
ƒƒ Houston, Dallas, and San Jose performed strongly
on most economic and market parameters, while
Detroit’s performance was below par. Economic
performance in these fast-growing markets, which was
driven by momentum in the technology and oil and gas
industries, led to large increases in HNWI population
and wealth in those areas (see page 8).
U.S. Economic Recovery in 2013 Set
Stage for Record Wealth Growth
5
Pre-recession refers to the period before 2007
6
Real GDP Rates, Bureau of Economic Analysis, August 2014
7
Unemployment Rates, U.S. Bureau of Labor Statistics
11. 112014 UNITED STATES WEALTH report
Positive Sentiment Spurs Major Gains in Equity
Markets, Real Estate Prices
As fundamental aspects of the U.S. economy fell into
place, both the Federal Reserve and investors responded
positively. The Federal Reserve began a slow and deliberate
unwinding of its bond-buying program towards the end of
the year, with the goal of timing the tapering to coincide
with continued improvement in the economy, possibly in
late 2014. After some initial hesitation, investors embraced
the Federal Reserve’s pullback, viewing it as a signal of the
economy’s ongoing strength.
Out of the positive sentiment came a tremendous rise in
the equity markets. The MSCI U.S. index rose by 29.9% in
2013, marking its biggest annual gain since 1997. The
2013 result was a major turnaround from 2008, when the
index fell by 38.6%, and a large improvement over the
13.5% gain in 2012. Overall, the index gained 152% from
the lows of February and March 2009 through the end of
2013. While upbeat sentiment and normalizing valuations
drove index performance in 2013, future growth is
expected to come from stronger earnings as corporations
build upon the historic profits reached in 2013.
After years of declining oil production, the U.S. is
beginning to reap the benefits of rapid, widespread
development of new sources of shale oil, transforming the
country into the largest producer of oil in the world.8
In
July 2014, U.S. oil production topped 8.5 million barrels
per day, a level not achieved since April 1987. Not only is
the increased production expected to constrain oil prices
and related price inflation (barring disruptions in the
Middle East), but it should help turn the country into a net
exporter of oil and natural gas, improving the strength of
the U.S. dollar, the jobs market, the competitiveness of
U.S. manufacturers, and the balance of payments.
Reduced government consumption constrained GDP
growth, masking strong private-sector performance. The
upside of reduced government spending (along with
increased taxes) was a dramatically lower federal deficit,
reversing the highest peak (since 1945) reached in 2009. In
fiscal 2014, the deficit as a percentage of GDP is expected
to fall below the 40-year average of 3.1%. The expected
US$280 billion deficit would be the country’s lowest since
the financial crisis of 2008-2009.
Figure 4. U.S. Real GDP Growth Rates, 2010–2013
(%)
-2%
0%
2%
4%
6%
2013201220112010
1.6
3.9
2.8 2.8
2.5
3.2
1.4
4.9
1.8
3.7
1.2
0.1
2.8 2.8
1.1
2.5
4.1
2.6
1.9
-1.3
AnnualQ1 Q2 Q4Q3
Rate
of Growth
FIGURE 4. U.S. Real GDP Growth Rates, 2010–2013
(%)
Source: Capgemini Financial Services Analysis, 2014; Bureau of Economic Analysis, U.S. Department of Commerce, Technical Note, January 30, 2014, available at
http://www.bea.gov/newsreleases/national/gdp/2014/pdf/tech4q13_adv.pdf
U.S. Economic Recovery in 2013 Set Stage for Record Wealth Growth
8
“U.S. surges past Saudis to become world’s top oil supplier – PIRA,” Reuters, October 2013
12. 12 2014 UNITED STATES WEALTH report
Real estate emerged as another bright spot in 2013, as
home prices and builder confidence rose in response to
improved credit conditions and revved-up real estate
investing. After falling from 2010 to 2012, prices increased
by 13.5 percentage points in 2013, despite rising mortgage
interest rates. Single-family home prices rose the highest
(by 20% to 25%) in the major California cities of San
Francisco, Los Angeles, and San Jose. The upward trend in
housing prices, along with a low inflation rate of 1.5%,
resulted in appreciating equity for homeowners throughout
the nation. The trend may not last, however, given prices
began to decelerate over the second half of 2013 and into
the first half of 2014 due to higher interest rates and an
unusually cold winter. While the real-estate recovery is
expected to have considerable economic upside, it is
occurring slowly, as still tight mortgage credit standards
constrain new buyers.
Economic Performance Improves in Most
Large Cities
The economic progress made throughout 2013 occurred
alongside both difficulties and various stabilizing
influences. Dysfunction in Washington D.C. had a
paralyzing effect, as a government shutdown, ultimatums,
threats, filibusters, and stand-offs became standard
operating procedures of an increasingly divisive Congress.
Other developments brought order. The agreement to
extend the U.S. debt ceiling to March 2015 quelled
uncertainties related to fiscal policy. After some initial
hiccups, the Federal Reserve’s evolving monetary policy
lent stability to the economy, and is expected to continue
to do so as the institution’s new head, Janet Yellen, pursues
the clearly articulated plan of gradually winding down the
stimulus.
While challenges remain, the U.S. economy has come a
long way from the peril of the crisis and the malaise that
followed. The technology and energy sectors (including the
shale oil and gas production industry) were the biggest
drivers of job and wage growth in U.S. cities.9
Nationally,
the professional, science, and technical services industries
expanded by 4.6%, while the construction industry
recorded growth of 8.6%, compared to 2012.
Houston, Dallas, and San Jose (in addition to Washington
D.C.) were among the best performers on various economic
parameters. Aided by significant growth in the oil and gas
industry, Houston and Dallas earned the top two spots in
terms of gross metropolitan product and personal income
growth, and experienced increases of 10% or more in real
estate prices. Matching their strong economic performances,
the Texas cities were also the largest gainers in HNWI
population and wealth in 2013, as well as over the period
from 2008 to 2013 (see page 8). The San Jose MSA (which
also includes surrounding Silicon Valley cities), aided by
growth in technology, witnessed a nearly 20% drop in its
unemployment rate and an almost 21% increase in real
estate prices.
On the other hand, Detroit, beset by low growth,
declining population, and high unemployment, all of
which helped push it into bankruptcy10
, had among the
lowest gross metropolitan product growth, leading to
HNWI wealth growth that was relatively lower, though
still a respectable 15.0%.
The larger markets rounding out the top 12 turned in
mixed performances. New York and Chicago had among
the lowest growth rates in gross metropolitan product and
real estate, while Boston, San Francisco, and Los Angeles
benefited from robust growth in personal income, and
San Francisco and Los Angeles recorded significant real
estate growth.
9
“Best-Performing Cities 2013,” Milken Institute, December 2013
10
“Record Bankruptcy for Detroit”, The Wall Street Journal, July 2013
13. 132014 UNITED STATES WEALTH report
Chapter Name
Driven by East Coast HNWIs, U.S. HNWI Trust and
Confidence Levels Increase
HNWI trust and confidence advanced significantly across
various industry stakeholders including the primary
HNWI relationships and the industry infrastructure,
underscoring the industry’s success in rebounding from a
shortfall of HNWI trust and confidence that arose during
the financial crisis. The trust and confidence U.S. HNWIs
have in their individual wealth managers and firms were
among the top six of the 23 countries examined (see Figure
5). Of all the developed countries (with the exception of
Canada), U.S. HNWIs had the highest levels of trust in
their primary wealth management relationships.
The high trust levels of U.S. HNWIs reflected double-
digit increases over the last year. Trust in the primary
relationships U.S. HNWIs hold with wealth managers and
firms leaped forward dramatically, increasing 12
percentage points each during 2013, putting U.S. HNWIs
well above their counterparts in the rest of the world12
in
terms of trust.
Expansion in U.S. HNWI trust also applied to the
underlying infrastructure of wealth management. Trust in
financial markets increased by 12 percentage points to
63.6%, with U.S. HNWIs again above the rest of the
world average of 56.0%. Trust in regulatory bodies and
institutions advanced 19 percentage points, a large jump
that drew U.S. HNWIs nearly even with the trust levels
reported by their peers in the rest of the world. Finally, the
already high faith U.S. HNWIs have in their ability to
generate wealth in the near future increased by another
three percentage points to 85.6%, the highest of all the
developed markets.
ƒƒ U.S. HNWI trust in all aspects of the wealth
management industry surged by double-digit rates
in 2014, lifting the U.S. into higher levels than most
of its developed-country peers. East Coast HNWIs
reported higher trust levels as compared to the West
Coast. Older HNWIs (over 60 years) also reported
higher trust for wealth managers and wealth
management firms but had lower trust levels in the
underlying infrastructure of wealth management,
including the financial markets and regulatory bodies
and institutions.
ƒƒ Driven by increased trust levels, the investment
approach of U.S. HNWIs reflected a greater
appetite for risk. Their allocations to alternative
(California MSAs in particular) and foreign investments
jumped markedly in Q1 2014, while allocation to
equities remain the highest across the globe (especially
in Washington D.C.).
ƒƒ Though U.S. HNWIs scored U.S. wealth managers
and firms high in terms of performance11
(especially
those on the East Coast), performance scores
dropped compared to 2013, especially among U.S.
HNWIs under 40. Younger U.S. HNWIs also indicated
lower performance scores for wealth managers
compared to HNWIs over 60.
Increased Trust Propels
Growth-Focused Investing
11
Question asked: “On a scale of 0%-100%, thinking about your overall relationship with your main wealth manager, what performance score would you give them”?
12
The 23 countries examined, excluding the U.S. Out of the 23 countries examined, Australia, Belgium, Canada, France, Germany, Hong Kong, Italy, Japan, Netherlands, Singapore, Spain,
Switzerland, U.S., and United Kingdom were classified as developed while Brazil, China, India, Indonesia, Malaysia, Mexico, Russia, South Africa, and United Arab Emirates were classified
as emerging
14. 14 2014 UNITED STATES WEALTH report
younger U.S. HNWIs (those under 40) had lower levels of
trust, their rates were still fairly high, in the range of 80%
to 85%, well exceeding those exhibited by younger
HNWIs in the rest of the world, which averaged nearly
72%.
Examined by MSA, HNWIs in cities on the East Coast
tended to have more trust in wealth management providers
than those on the West Coast. Three of the four cities
studied with the highest levels of HNWI trust in wealth
managers were on the East Coast, led by Boston (91.1%)
and followed by New York (89.3%) and Philadelphia
(85.3%). HNWIs in West Coast cities were much more
likely to be at or below U.S. average trust levels for
managers and firms.
U.S. ultra-HNWIs (more than US$20 million in
investable assets)13
had higher levels of trust in wealth
management firms (91.2%) and individual managers
(85.1%) compared to HNWIs with US$1-US$5 million in
wealth, who had the least amount of trust and confidence
in their providers (86.7% and 84.3%, respectively).
Ultra-HNWIs also had high trust in the financial markets
(69.3%) and regulatory bodies (61.4%), although HNWIs
with US$1–US$5 million in wealth also showed significant
increases in trust levels (by 8.2 and 16.0 percentage points,
respectively) to 60.8% and 52.7%, respectively.
Trust levels correlated strongly with age, with U.S.
HNWIs over 60 having the highest levels, at close to 90%
for both individual wealth managers and firms. While
13
For survey purposes, we used the bracket of US$20 million and above in financial assets as our upper wealth band; the definition of the ultra-HNWI segment remains US$30 million and
above; for analysis purposes, the upper survey band serves as a reliable proxy for ultra-HNWIs
Figure 5. Trust and Confidence Levels in Key Stakeholders, U.S. vs. Rest of the World, Q1 2014
(%)
0%
25%
50%
75%
100%
Personal Ability to
Generate Wealth
Regulatory Bodies
Respondents
Financial MarketsWealth Management
Firm
Wealth Manager
84.4
70.7
87.4
71.9
63.6
56.0 56.2 55.7
85.6
73.6
Rest of the WorldU.S.
FIGURE 5. Trust and Confidence Levels in Key Stakeholders, U.S. vs. RoW, Q1 2014
(%)
Note: Question asked: “Currently, to what extent do you agree or disagree with the following statements?–I have trust and confidence in the …” for various stakeholders listed above
were analyzed based on agreement and disagreement to arrive at the percentages for HNWI trust and confidence
Source: Capgemini, RBC Wealth Management, and Scorpio Partnership Global HNW Insights Survey, 2014
15. 152014 UNITED STATES WEALTH report
Increased Trust Propels Growth-Focused Investing
Focus on Growth Pervades Asset Allocation
Propelled by increased trust and confidence, U.S. HNWIs
continued to adopt a growth-focused approach to
investments, and reflected an increased appetite for risk.
Their allocations to equities, though down from a year
earlier, remained the highest across the globe, at 32.6% (see
Figure 6). Allocation toward alternative investments
expanded by nearly four percentage points, the largest
increase across all asset classes. U.S. HNWIs were also more
inclined toward investing beyond North American borders,
bringing their international allocations up to 32.9%, from
only 19.7% a year earlier. Inclination toward investments
outside their home markets was primarily driven by younger
HNWIs (under 40), as the percentage allocation of this
segment, outside home markets, increased by 14.3
percentage points to 52.8%. HNWIs between 40–49 years
also allocated higher levels (40.0%) outside North America
and these levels increased by 9.0 percentage points in Q1
2014 compared to a year earlier.
The preference toward growth was most pronounced among
U.S. HNWIs with between US$1 million and US$5 million
in assets, who had the highest allocation in equities (34.5%),
and were more interested in growing their wealth (33.3%)
than preserving it (30.9%). U.S. ultra-HNWIs, on the other
hand, allocated only 26.8% to equities, and were focused
on preserving their wealth (33.3%), rather than growing it
(28.1%), putting them at odds with rest of the world trend
for this segment. Aligned with their higher focus on
preservation, U.S. ultra-HNWIs allocated a higher
proportion of their assets to cash (24.2%), compared to
22.3% for all other wealth bands.
HNWIs in the California cities of Los Angeles, San
Francisco, and San Jose were leading drivers of the growth-
focused asset allocation. Despite having lower trust levels,
they had above-average allocations to alternative assets and
real estate, and were much more likely to invest abroad.
Combined allocation to real estate and alternative
investments in these three cities was more than 30%,
Figure 6. Breakdown of U.S. HNWI Financial Assets, Q1 2014
(%)
0%
25%
50%
75%
100%
Restof
theWorld
U.S.2013
U.S.2014
NewYork
LosAngeles
Chicago
WashingtonD.C.
SanFrancisco
Boston
Philadelphia
Houston
SanJose
Dallas
Detroit
Seattle
Allocation
Equities
Cash
and Cash
Equivalents
Fixed Income
Real Estateb
Alternative
Investmentsa
22%
28%
16%
21%
14%
33%
23%
18%
14%
13%
22%
24%
19%
20%
16%
35%
23%
17%
9%
16%
41%
23%
18%
10%
8%
32%
20%
19%
17%
13%
32%
20%
19%
18%
11%
38%
21%
17%
12%
12%
34%
23%
18%
13%
12%
33%
19%
17%
16%
16%
32%
26%
18%
12%
12%
38%
22%
18%
8%
14%
33%
26%
16%
13%
12%
29%
21%
23%
15%
12%
38%
21%
19%
13%
9%
FIGURE 6. Breakdown of U.S. HNWI Financial Assets, Q1 2014
(%)
a. Includes structured products, hedge funds, derivatives, foreign currency, commodities, private equity
b. Excludes Primary Residence
Note: Chart numbers may not add up to 100% due to rounding
Source: Capgemini, RBC Wealth Management, and Scorpio Partnership Global HNW Insights Survey, 2013, 2014
16. compared to an average of 26.8% for all U.S. HNWIs.
Their allocations to international markets stood at 44.5%,
compared to the U.S. average of 32.9%. Driven by increased
real estate prices and high levels of technology firm start-
ups, HNWIs in Los Angeles stood out for having much
higher allocations to real estate (20% versus a U.S. average
of 14%) and alternative investments (16% versus a U.S.
average of 13%) and were the most likely among all the U.S.
HNWIs to invest outside the home region (47% versus a
U.S. average of 33%). HNWIs in Washington D.C. stood
out for having much higher allocations to equities (41%
versus a U.S. average of 33%) and, along with Seattle, being
the cities that invested the least outside of the U.S. (19.5%
and 19.9%, respectively).
Younger U.S. HNWIs Present New Challenges
Although U.S. HNWIs ranked their wealth managers very
high in terms of performance, there were signals that wealth
managers may need to work harder to win the favor of their
clients going forward. On the positive side, U.S. wealth
managers earned a fourth-place rating globally, with a
performance score of 72.7%, compared to rest of the world
average of 59.0% (see Figure 7). However, despite strong
growth in wealth and increasing levels of trust and
confidence, these performance scores reflected a drop of 6.4
percentage points from a year earlier, the fourth-largest
decrease globally.
Performance scores at a MSA level were particularly high on
the East Coast as compared to the West Coast. HNWIs in
the MSAs of Boston (79.6%), Pittsburgh (77.7%), and
Philadelphia (75.9%) rated their wealth manager/wealth
management firms higher than the U.S. average of 72.7%.
These performance scores rank high when compared to
those on the West Coast MSAs of Los Angeles (66.1%),
Seattle (70.9%), San Jose (69.0%), and San Francisco
(66.3%), where performance scores were below the U.S
average. Boston recorded the highest performance scores,
while performance scores were the lowest in Los Angeles.
Alarmingly, under-40 U.S. HNWIs were most critical of
wealth manager performance. Their average performance
score of 67.1% was well below the over-60 HNWI score of
79.1% and also the U.S. average of 72.7%. Under-40
HNWIs reduced their performance ratings by 9.7
percentage points from a year earlier, nearly double the
amount of the next-largest reduction (5.0 percentage
decrease for 40–49 age group).
2014 UNITED STATES WEALTH report16
Figure 7. Wealth Manager Performance Scores, Q1 2014
(%)
60+50–5940–49Under 40U.S.Rest of the World
0%
20%
40%
60%
80%
100%
Performance
Scores
Increase/Decrease vs. Q1
2013 (Percentage Points)
59.0%
72.7%
67.1% 67.7%
76.7%
79.1%
3.1 6.4 9.7 5.0 1.9 2.3
FIGURE 7. Wealth Manager Performance Scores, Q1 2014
(%)
Note: Question asked: “On a scale of 0%-100%, thinking about your overall relationship with your main wealth manager, what performance score would you give them”?
Source: Capgemini, RBC Wealth Management, and Scorpio Partnership Global HNW Insights Survey, 2014
17. 172014 UNITED STATES WEALTH report
Declining performance scores offer wealth management
firms a golden opportunity to reposition their offerings to
meet specific U.S. HNWI preferences. Chief among these is
a preference for a streamlined approach to wealth
management, characterized by a strong relationship with a
single firm, rather than engagement with many. Only
10.8% of U.S. HNWIs said they wanted to work with
multiple firms, compared to the 54.4% who expressed a
desire to work with one (see Figure 8). Along with a
preference for nurturing a relationship with a single firm,
U.S. HNWIs view their needs as straightforward (rather
than complex), and expressed a need for wealth advice
focused on the individual, not the whole family. The
preference to work with a single firm ranked the second
highest globally (just behind Canada). Additionally, the
preference for personal wealth advice among the U.S.
HNWIs was the highest across the globe.
Addressing U.S. HNWI requirements for strong single-firm
connections offers a positive avenue for firms to pursue
improved client-centric relationships, leading to an
expanded share of wallet. Just as important will be the firms’
ability to meet the emerging preferences of the under-40
segment, a group that will become increasingly prominent
as it continues to grow and inherit wealth. Under-40
HNWIs have vastly different views than older HNWIs
regarding their needs and how they would like to approach
wealth management.
Figure 8. U.S. HNWI Preferred Wealth Management Approach, Q1 2014
(%)
Family Wealth Advice
I seek advice and solution for
the wealth needs of my
extended family
U.S.
Rest of the World
U.S.
Rest of the World
U.S.
Rest of the World
U.S.
Rest of the World
U.S.
Rest of the World
Complex Needs
My wealth needs are complex
and may encompass my
business, or my extended family
or my philanthropic activities
Wealth Growth
I am currently most focused on
growing my wealth
Multiple Firms
I prefer to work with various wealth
management firms who each have a
specific area of expertise that meets
my needs
Financial Benchmark Measurement
I judge the success of my portfolio by
comparing it to financial market
performance and benchmarks
(i.e., on a relative basis)
Personal Wealth Advice
I seek advice and solution for my
own personal wealth needs
Straightforward Needs
My wealth needs are straightforward:
I want to manage my cash and credit,
and grow my investments
Wealth Preservation
I am currently most focused on
preserving my wealth
Single Firm
I prefer to work with a single wealth
management firm that can meet the
full range of my financial needs
Financial & Life Goals Measurement
I judge the success of my portfolio
based on my own financial and
life goals (i.e., on an absolute basis)
23.2%
24.7%
41.3%
25.7%
20.7%
22.8%
51.5%
32.3%
31.4%
26.0%
32.8%
26.9%
10.8%
12.8%
54.4%
36.0%
23.8%
19.8%
31.2%
28.9%
FIGURE 8. U.S. HNWI Preferred Wealth Management Approach, Q1 2014
(%)
Note: As we asked for preferences across a 10-point spectrum containing two extreme points, the above numbers indicate the percentage of respondents providing top-three ratings
at each extreme
Source: Capgemini, RBC Wealth Management, and Scorpio Partnership Global HNW Insights Survey, 2014
Increased Trust Propels Growth-Focused Investing
18. A main difference that emerged between older and younger
U.S. HNWIs was that younger HNWIs were much more
likely to classify their needs as complex (37.5% versus 8.9%),
as well as seek family wealth advice (35.3% versus 12.8%).
They were also more interested in growing their wealth
compared to over-60 U.S. HNWIs (31.4% versus 20.9%).
Trust was another differentiation point. As noted earlier,
U.S. HNWIs in their 40s and under had a high amount of
trust in wealth managers and firms, but not as much as
older U.S. HNWIs. The exception was with regard to the
financial markets, in which under-40 HNWIs had
significantly more confidence (79.0%), compared to U.S.
HNWIs over 60 (51.4%). In addition, their satisfaction
with wealth managers was much lower, with performance
scores reaching only 67.1%, compared to 79.1% for over-60
U.S. HNWIs.
Additionally, younger HNWIs are much more demanding
when it comes to their expectations of digital interactions.
Of U.S. HNWIs under 40, 38.5% prefer digital contact,
compared to only 15.2% of over-60 U.S. HNWIs. Given
the strong preference for digital interactions among younger
HNWIs, wealth management firms need to take proactive
steps in this direction. While websites remained the most
important digital access point for both under-40 and
over-40 HNWIs, younger HNWIs were more than twice as
likely to use newer digital channels, such as mobile
applications, video, and social media (see Figure 9). Younger
U.S. HNWIs also had a greater expectation for an
integrated and consistent experience. Seventy-eight percent
of U.S. HNWIs under 40 (versus 49.3% of those over 40)
indicated a propensity to leave their firms due to a lack of
integrated channels (see Figure 10). However, this
propensity of U.S. HNWIs in younger and other age bands
is lower when compared to the rest of the world HNWIs
(57.5% for U.S. HNWIs overall versus 68.5% for rest of the
world HNWIs).
2014 UNITED STATES WEALTH report18
Figure 9. U.S. HNWI Channel Importance for All Capabilities by Channels and Age, Q1 2014
(%)
0%
20%
40%
60%
80%
Social MediaVideoMobileEmailPhoneIn personWebsite
66.4%
60.9%
61.8%
61.3%
59.4%
60.4% 60.4%
58.2%
54.4%
24.3%
48.0%
19.7%
45.3%
17.4%
Above 40Under 40
Respondents
FIGURE 9. U.S. HNWI Channel Importance for All Capabilities by Channels and Age, Q1 2014
(%)
Note: Weighted average of percent of respondents who ascribed a level of importance of 7 or higher, on a 10-point scale, to various capabilities as listed out in Figure 27 of the World
Wealth Report 2014 available at www.worldwealthreport.com; Average importance of all capabilities was calculated to arrive at a consolidated importance level for each channel
Source: Capgemini, RBC Wealth Management, and Scorpio Partnership Global HNW Insights Survey, 2014
19. 192014 UNITED STATES WEALTH report
Given the importance of digital, the digital revolution
cannot be ignored. Younger U.S. HNWIs expressed a clear
preference for more modern forms of interaction, a finding
that was also confirmed in our World Wealth Report 2014.
To ensure a pattern of ever-deeper relationships, especially
with younger, increasingly influential U.S. HNWIs, firms
need to embrace digital technology as an integral part of the
business model that addresses HNWI expectations for an
integrated experience across all channels.
Going forward, firms will face the dual challenges of
meeting the ongoing needs of over-60 U.S. HNWIs, while
also accommodating the emerging preferences of younger
ones. To accommodate their divergent needs and
preferences, wealth management firms will need to develop
product, service, and communications strategies that take
into account demographic preferences. Addressing client
needs simply in accordance with the size of HNWI wealth
will no longer suffice. Firms will need to devise new
approaches, such as cross-generational wealth management
teams, to address varying age-related needs.
Figure 10. Propensity to Leave Wealth Management Firm Due to Lack of Integrated Channel Experience by
Age Band, Q1 2014
(%)
0% 25% 50% 75% 100%
60+
50–59
40–49
Under 40
Overall
57.5%
68.5%
78.0%
80.4%
63.9%
69.4%
46.7%
66.1%
40.4%
53.6%
Rest of the World
U.S.
FIGURE 10. Propensity to Leave Wealth Management Firm Due to Lack of Integrated Channel Experience by Age Band, Q1 2014
(%)
Note: Question asked, “If your main wealth management provider could not offer this type of integrated wealth management experience, would it prompt you to consider moving to
another firm?”
Source: Capgemini, RBC Wealth Management, and Scorpio Partnership, Global HNWI Insights Survey, 2014
Increased Trust Propels Growth-Focused Investing
20. 20 2014 UNITED STATES WEALTH report
U.S. HNWIs PLACE High Importance on Driving
Social Impact
Like HNWIs in the rest of the world, U.S. HNWIs are
interested in deploying their capital and resources to drive
positive effects on society and/or the environment. More
than half (56.0%) said that driving social impact was very
or extremely important to them, which was slightly less
than the 62.3% of HNWIs in the rest of the world who
reported the same level of importance. Nearly another
third of U.S. HNWIs (31.9%) described driving social
impact as important or somewhat important, a rate that
was nearly even with that of the rest of the world.
Looking at MSAs, there is a clear divide between East
Coast and West Coast on this topic. The level of social
impact importance (very or extremely important) was
above the U.S. average for California HNWIs in Los
Angeles (71.6%), San Jose (67.3%), and San Francisco
(58.6%), while it was below-average for East Coast
HNWIs (except New York) in Boston (42.9%),
Washington D.C. (45.6%), and Philadelphia (50.0%).
Asked why they choose to dedicate their time, money, or
expertise to social causes, U.S. HNWIs mentioned that
personal and family values were the biggest drivers (at
90.7%), followed by a feeling of responsibility to give back
(82.7%) and a desire to instill social values in their children
(75.6%), which is in line with the trend in the rest of the
world. The preferred causes of U.S. HNWIs also aligned
with those in the rest of the world, with child welfare
topping the list (37.2%), followed by education (34.9%)
and health (34.5%).
ƒƒ Driving social impact proved important to U.S.
HNWIs of all wealth levels, ages, genders, and
geographies, with over half describing it as very or
extremely important and nearly 88% describing it
as important. Giving to religious causes was a much
higher priority for U.S. HNWIs compared to their peers
in the rest of the world, and non-financial methods of
achieving impact, such as volunteering time or
expertise, were more common in the U.S. than across
the rest of the world.
ƒƒ Younger and female HNWIs in the U.S. indicated a
stronger desire than their older or male counter-
parts to make a positive social impact. The causes
that most interest younger HNWIs included expanding
social programs, race relations, and issues related to
gender inequality, energy security, and unemployment.
ƒƒ Even though younger U.S. HNWIs had higher
expectations with regard to support from their
wealth managers in fulfilling their social impact
goals, compared to their older counterparts (88.0%
versus 43.6%), they were the most satisfied with
the level of social impact support received. The gap
between support expected and received from wealth
management firms was highest (18.2 percentage
points) for U.S. HNWIs over 60, and lowest
(9.1 percentage points) for those under 40.
Driving Social Impact Gains Momentum
among Younger U.S. HNWIs
21. 212014 UNITED STATES WEALTH report
Younger and Female U.S. HNWIs Place Greater
Importance on Driving Social Impact
Current practices related to driving social impact in the
U.S. are likely to undergo a dramatic shift as under-40
HNWIs gain greater wealth and prominence. The younger
generation of U.S. HNWIs are much more interested in
driving social impact, with 80.6% citing it as extremely or
very important, compared to only 31.9% of over-60 U.S.
HNWIs (see Figure 11). The drivers of their social impact
goals also differed from those of older U.S. HNWIs.
Younger HNWIs were more likely to want to leave a
personal legacy (11.3% versus 3.5% for HNWIs over 60)
and were more likely to act in response to a personal
experience (14.2% versus 7.1% for HNWIs over 60).
U.S. HNWIs differed from their global peers in a few
ways. For one, they were much more likely to give to
religious causes. Religious giving ranked as the fourth
most-important cause for U.S. HNWIs, with 29.7% citing
its importance, compared to only 11.6% for HNWIs in the
rest of the world. U.S. HNWIs were also more apt to
engage in ongoing charitable giving, with 21.0% citing it as
their preferred mechanism for achieving social impact,
compared to only 11.8% for HNWIs elsewhere in the
world. U.S. HNWIs were also more likely to pursue
non-financial measures to gain social impact, such as
volunteering in the community (18.1% versus 12.0% in the
rest of the world) and fundraising or volunteering for
charitable organizations (10.6% versus 7.9% in the rest of
the world).
Driving Social Impact Gains Momentum among Younger U.S. HNWIs
Figure 11. Key Differences in U.S. HNWI Social Impact Landscape by Age and Gender, Q1 2014
(%)
Arts, Culture and Heritage
Education
Gender Inequality
Health, Diseases and Palliative Care
Male
Female
Male
Female
Male
Female
Male
Female
Response to a Personal Experience
Capacity Building in the Social Sector
Gender Inequality
Race-Related Issues
60+
Under 40
60+
Under 40
60+
Under 40
60+
Under 40
Desire for Personal Legacy
Society and Work
Energy Security
60+
Under 40
60+
Under 40
60+
Under 40
Gender Age
Male
Female 62.0%
49.9% 60+
Under 40 80.6%
31.9%
25.5%
17.0%
14.2%
7.1%
11.3%
3.5%
37.6%
32.1%
12.0%
1.8%
20.1%
6.0%
16.0%
8.6%
18.4%
11.3%
4.6%
7.8%
17.8%
9.2%
38.7%
30.3%
Importance Drivers Causes
FIGURE 11. Key Differences in U.S. HNWI Social Impact Landscape by Age and Gender, Q1 2014
(%)
Note: Question asked (Importance): “How important is it to you to give time, money and/or expertise with the goal of generating positive social impact”? Percentage represents sum
of “Extremely Important” and “Very Important”; Question asked (Drivers): What most drives you to allocate a portion of your wealth, time or expertise to make a positive social
impact? Above percentage indicates the % of HNWIs who gave “This is most important” response for that particular driver; Question asked (Causes): To which of the following
issues are you currently allocating wealth, time or expertise? Above percentages indicates the % of HNWIs that are currently allocating their wealth, time or expertise into that
particular cause
Source: Capgemini, RBC Wealth Management, and Scorpio Partnership Global HNW Insights Survey, 2014
22. As younger U.S. HNWIs begin to drive social impact more
vigorously, there may be a shift in the types of social issues
receiving the most attention. The five causes that currently
have very low focus for HNWIs over 60 were the top
priorities for those under 40. These included expanding
social programs, issues related to unemployment and prison
reform, gender inequality, energy security, and race-related
issues.
Female U.S. HNWIs are likely to have a greater influence
on driving social impact going forward. They were more
interested in having a social impact, with 62.0% citing it as
very or extremely important, compared to 49.9% of male
U.S. HNWIs. Their social interests also differed markedly
from those of male U.S. HNWIs, with preferred causes
revolving around arts and culture, education, gender
inequality, health, and animal welfare having the most
importance, whereas men were more focused on energy
security, capacity building in the social sector, and income
inequality.
The higher interest levels of younger and female U.S.
HNWIs in driving social impact, combined with the
different causes and drivers behind their goals, underscores
the personal and varied preferences surrounding social
impact. Given the growing range of demographic
preferences, wealth managers and firms cannot rely on a
one-size-fits-all approach as they devise strategies related to
driving social impact. Nor can they assume that handing
down the same strategies from one generation to the next
will be effective over time in engaging their socially
conscious clients.
U.S. HNWIs, across Age Groups, Indicate Social
Impact Service Gap
Just over half of all U.S. HNWIs (51.2%) said they
received a high or moderate level of support to reach their
social impact goals. That represented a 14.3 percentage
point gap in the service levels they would want to receive
in an ideal world (65.4%). The gap was highest (18.2
percentage points) for U.S. HNWIs over 60, who put their
current levels of support at 25.4%. The gap was lowest (9.1
percentage points) for those under 40, who put their
current levels of support at 78.9%.
Not only did younger U.S. HNWIs place higher
importance on driving social impact, their expectations of
their firms in this area were also higher (88.0%14
versus
43.6% for older HNWIs). Despite their high expectations,
younger U.S. HNWIs were the least likely of all the age
groups to perceive wealth management firms as lacking in
this area. The lower gap for under-40s may be an
indication that younger U.S. HNWIs are more self-
sufficient when it comes to devising ways of meeting their
socially conscious goals. Or this group may not be aware of
the types of services wealth management firms may be
offering to meet their needs.
By wealth band, U.S. HNWIs with between US$1 million
and US$5 million of assets were most likely to perceive a
gap between the social impact services they desired and
those that were offered. This HNWI segment put the gap
at 16.4 percentage points, compared to 7.1 percentage
points for those with more than US$20 million in assets.
From a gender perspective, both male and female U.S.
HNWIs perceived a significant gap (14.5 and 14.0
percentage points, respectively).
To address this gap, wealth management firms will need to
understand the different perceptions and preferences
various HNWI segments have for driving social impact.
Similar to a robust wealth management plan, it is
important for advisors to understand and align client
motivations and drivers with an overall social impact plan
that supports current causes.
2014 UNITED STATES WEALTH report22
14
Based on a question that asked: “In an ideal world what level of support would you like from wealth management firms to help you fulfill your social impact goals? 0 = No support; 10 = High
level of support” and the number represents moderate (5,6) and high (7-10) level of rating
23.
24. 2014 UNITED STATES WEALTH report
Appendix
Methodology
Market-Sizing Methodology
The U.S. Wealth Report 2014 market-sizing model is based
on the model used in the World Wealth Report 2014, which
covers 71 countries accounting for more than 98% of global
gross national income and 99% of world stock market
capitalization. The U.S. Wealth Report 2014 market sizing
focuses on the U.S. and 12 core metropolitan statistical
areas (MSAs) within the U.S., as defined by the U.S. Office of
Management and Budget (OMB): Boston, Chicago, Dallas,
Detroit, Houston, Los Angeles, New York, Philadelphia,
San Francisco, San Jose, Seattle, and Washington D.C.
We estimate the size and growth of wealth in various
regions, countries, and globally using the Capgemini
Lorenz curve methodology, which was originally
developed during consulting engagements in the
1980s. It is updated on an annual basis to calculate the
value of HNWI investable wealth at a macro level.
The model is built in two stages: first, the estimation of
total wealth in a given geographic area, and second, the
distribution of this wealth across the adult population in
that geographic area. Total wealth levels by geography are
estimated using statistics from recognized sources to identify
the total amount of savings per geography in each year.
These are summed over time to arrive at total accumulated
wealth. As this captures financial assets at book value, the
final figures are adjusted based on stock indexes to reflect
the market value of the equity portion of HNWI wealth.
Wealth distribution is based on formulized relationships
between wealth and income. We use the Lorenz curves
to distribute wealth across the adult population in each
geography. Each year, we continue to enhance our
macroeconomic model with increased analysis of local
economic factors that influence wealth creation.
The investable asset figures we publish include the value of
private equity holdings stated at book value, as well as all
forms of publicly quoted equities, bonds, funds, and cash
deposits. They exclude collectibles, consumables, consumer
durables, and real estate used for primary residences.
2014 Global High Net Worth Insights Survey
The Capgemini, RBC Wealth Management, and Scorpio
Partnership 2014 Global HNW Insights Survey queried more
than 4,500 HNWIs across 23 major wealth markets in North
America, Latin America, Europe, Asia-Pacific, the Middle
East, and Africa. A total of 1,080 HNWIs were surveyed in the
U.S. across 19 MSAs: Atlanta, Baltimore, Boston, Chicago,
Dallas, Denver, Detroit, Houston, Los Angeles, Minneapolis,
New York, Philadelphia, Pittsburgh, Portland, San Diego,
San Francisco, San Jose, Seattle, Washington D.C.
The Global HNW Insights Survey, the largest global survey of
HNWIs, was administered in January and February 2014 in
collaboration with Scorpio Partnership, a firm with 16 years
of experience in conducting private client and professional
advisor interviews in the wealth management industry.
The 2014 survey built on analysis conducted around three
key areas in 2013: HNWI trust and confidence, HNWI
asset allocation, and HNWI behavior. The first focus
area targeted HNWI levels of trust and confidence in key
industry stakeholders, including wealth management
firms, individual wealth managers/advisors, financial
markets, and regulatory bodies and institutions. The
second focus area, asset allocation, measured current
asset allocation patterns of global HNWIs, as well as the
geographic allocations of their investments. The third
focus area, HNWI behavior, studied HNWI preferences and
behaviors with respect to their objectives and approaches
to wealth management, their relationships with wealth
managers, and the type of services they expect.
In addition, the 2014 survey expanded its focus to include
two new areas. The first new area, on driving social impact,
addressed the importance of various drivers and causes
that motivate HNWIs to give, the mechanisms they use to
fulfill social impact goals, as well as the support they expect
from their wealth management firms. The second new area
focusing on the rising importance of digital, surveyed HNWIs
on their preference for digital interaction with firms for
various wealth management activities and their expectations
of firms to deliver an integrated digital client experience.
To arrive at the rest of the world and regional values,
country- and region-level weightings, based on the
respective share of the global HNWI population, were
used. This was done to ensure that the survey results
are representative of the actual HNWI population.
For more interactive and historical data at a U.S. and MSA
level for Market Sizing and the Global High Net Worth
Insights Survey, please visit www.us-wealthreport.com.
24
25. 2014 UNITED STATES WEALTH report
Acknowledgements
We would like to thank the following people for helping to compile this report
William Sullivan, Karen Schneider, David Wilson, Chirag Thakral, and Mahesh Bhattad from Capgemini, for their overall
leadership for this year’s report; Sumit Chugh, Naren Karri, Bhaskar Sriyapureddy, Shradha Verma, and Chris Costanzo,
for researching, compiling and writing the findings, as well as providing in-depth market analysis; Tej Vakta, Brendan
Clarke, and members of the Capgemini Wealth Management Practice, for their insights and industry knowledge.
Additionally, Vanessa Baille, Mary-Ellen Harn, Ed Johnson, Marion Lecorbeiller, Martine Maitre, Partha Karmakar, Sourav
Mookherjee, Stacy Prassas, Sunoj Vazhapilly, and Sathish Kumar Kalidasan for their ongoing support globally.
Rebecca Mooney, Kathy Engle, Eleanor Luk, Aishling Cullen, Nicole Garrison, Jonell Lundquist, Claire Holland and
Tony Maraschiello, from RBC Wealth Management, who provided direction, access, industry perspective, and
research to ensure the development of topical issues being addressed in the Financial Services industry, as well
as planning to support the launch of the report; John Taft, Eric Lascelles, Janet Engels and Kelly Bogdanov who
provided expert advice on industry trends. Additionally we would like to thank: Greg Swoverland, Christopher Burke,
Jennifer Zimmerman, Mick Dyer, Katherine Vance, Jim Torrance, Lea Maiorino, Romina Mari and Sophie Garber
for their support. We would also like to thank the regional experts from Capgemini, RBC Wealth Management and
other institutions who participated in executive interviews to validate findings and add depth to the analysis.
Scorpio Partnership, led by Sebastian Dovey and Cath Tillotson, for their strong collaboration in developing and administering
our Global HNW Insights Survey, which is the largest and most in-depth survey of high net worth individuals ever conducted.
We extend a special thanks to those firms and institutions that gave us insights into events that are impacting the global and
U.S. wealth management industry.
The information contained herein was obtained from various sources; we do not guarantee its accuracy or completeness nor the accuracy or completeness of the analysis relating
thereto. This research report is for general circulation and is provided for general information only; any party relying on the contents hereof does so at its own risk.
25
26. 2014 UNITED STATES WEALTH report26
CAPGEMINI FINANCIAL SERVICES
With more than 140,000 people in over 40 countries, Capgemini is one of the world’s foremost providers of consulting,
technology and outsourcing services. The Group reported 2013 global revenues of EUR 10.1 billion. Together with its
clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they
want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business
ExperienceTM
, and draws on Rightshore®, its worldwide delivery model.
Capgemini’s wealth management practice can help firms from strategy through to implementation. Based on our unique
insights into the size and potential of target markets across the globe, we help clients implement new client strategies, adapt
their practice models, and ensure solutions and costs are appropriate relative to revenue and profitability expectations. We
further help firms develop, and implement the operational infrastructures—including operating models, processes, and
technologies—required to retain existing clients and acquire new relationships.
Learn more about us at www.capgemini.com/financialservices
Rightshore® is a trademark belonging to Capgemini
Select Capgemini Offices
Capgemini Corporate Headquarters
Anaheim 1 714 787 1550
Atlanta 1 404 806 4200
Austin 1 512 730 2000
Bloomfield 1 973 337 2700
Burbank 1 818 736 8000
Charlotte 1 704 350 8500
Chicago 1 312 395 5000
Cleveland 1 216 373 4500
Dallas 1 214 253 6415
Houston 1 281 220 5000
Irving 1 972 556 7000
Jersey City 1 201 633 7000
Paris 33 1 49 67 30 00
Lee’s Summit 1 816 347 7500
Marlborough 1 508 573 2900
New York 1 212 314 8000
Palestine 1 214 432 6017
Phoenix 1 602 333 3000
Reston 1 571 336 1600
San Francisco 1 650 825 2300
San Juan 1 787 304 9500
Sarasota 1 941 308 9900
Southfield 1 248 233 3101
Washington DC 1 571 336 1720
New York 1 212 314 8000
About Us
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27. 2014 UNITED STATES WEALTH report 27
United States Wealth Report
RBC WEALTH MANAGEMENT
RBC Wealth Management is one of the world’s top five largest wealth managers*. RBC Wealth Management directly serves
affluent, high-net-worth and ultra-high net worth clients in Canada, the United States, Latin America, Europe, the Middle East,
Africa, and Asia with a full suite of banking, investment, trust and other wealth management solutions. The business also
provides asset management products and services directly and through RBC and third party distributors to institutional and
individual clients, through its RBC Global Asset Management business (which includes BlueBay Asset Management). RBC
Wealth Management has more than C$700 billion of assets under administration, more than C$442 billion of assets under
management and approximately 4,400 financial consultants, advisors, private bankers, and trust officers. For more information,
please visit www.rbcwealthmanagement.com
ROYAL BANK OF CANADA
Royal Bank of Canada (RY on TSX and NYSE) is Canada’s largest bank, and one of the largest banks in the world, based
on market capitalization. We are one of North America’s leading diversified financial services companies, and provide
personal and commercial banking, wealth management services, insurance, investor services and capital markets products
and services on a global basis. We employ approximately 79,000 full- and part-time employees who serve more than 16
million personal, business, public sector and institutional clients through offices in Canada, the U.S. and 40 other
countries. For more information, please visit www.rbc.com.
RBC supports a broad range of community initiatives through donations, sponsorships and employee volunteer activities.
In 2013, we contributed more than $104 million to causes worldwide, including donations and community investments of
more than $69 million and $35 million in sponsorships. Learn more at www.rbc.com/community-sustainability.
*Scorpio Partnership Global Private Banking KPI Benchmark 2014. In the United States, securities are offered through RBC Wealth Management,
a division of RBC Capital Markets, LLC , a wholly owned subsidiary of Royal Bank of Canada. Member NYSE/FINRA/SIPC.
Select Global RBC Wealth Management Offices
Select U.S. RBC Wealth Management Offices
Asia
Beijing 86 10 5839 9300
Brunei 673 2 224366
Hong Kong 852 2848 1388
Singapore 65 6230 1888
British Isles
Guernsey 44 1481 744000
Jersey 44 1534 283000
London 44 20 7653 4000
Canada
Offices in over 140 locations 1 855 444 5152
Boston 1 617 725 2000
Chicago 1 312 559 3000
Dallas 1 214 775 6400
Houston 1 713 626 4910
Los Angeles (Beverly Hills) 1 310 273 7600
Minneapolis 1 612 371 2811
Caribbean
Bahamas 1 242 702 5900
Barbados 1 246 467 4300
Cayman Islands 1 345 949 9107
Europe
Madrid 34 91 310 00 13
Geneva 41 22 819 4242
Middle East
Dubai 971 4 3313 196
New York 1 212 703 6000
Philadelphia 1 215 557 1700
San Francisco 1 415 445 8660
San Jose 1 408 292 2442
Seattle 1 206 621 3200
Washington D.C. 1 202 408 4500
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