1.
Top 10 Trends for Wealth
Management 2018
December, 2017

2.
Capital Markets Trends 2018| December 2017 © 2017 Capgemini. All rights reserved. 2
Applications of artificial intelligence, machine learning,
and cognitive insights expand across wealth management
industry
Exponential increases in computer power
leading to rise in AI and ML systems
Regulatory and Operational Efficiency
Pressures
Evolving Client Demands
Innovative applications using
emerging technologies are
now moving beyond marketing
analytics toward more
strategic functions
Source: Capgemini Financial Services Analysis, 2017

3.
Capital Markets Trends 2018| December 2017 © 2017 Capgemini. All rights reserved. 3
Increasing, Complex and Stringent
Regulations
Increasing Competition
Firms need to look at RPA beyond just a
technology initiative and leverage it to re-
orient their business models, re-engineer
their processes, and restructure their
people
Source: Capgemini Financial Services Analysis, 2017
Robotic process automation can help firms keep costs
down and accelerate digital transformation
Changing Consumer Behavior
Workforce Inefficiencies

4.
Capital Markets Trends 2018| December 2017 © 2017 Capgemini. All rights reserved. 4
Changing HNWI Behavior and Preferences
Non-Differentiated Offerings
Entry of Non-Traditional Players
Solutions Focus
Service Delivery
Experience
Differentiated Product
Solutions
Customer Prospecting and
Acquisition
Source: Capgemini Financial Services Analysis, 2017
Innovation is key for firms to be future-ready

5.
Capital Markets Trends 2018| December 2017 © 2017 Capgemini. All rights reserved. 5
Disruption by Low-Cost Advisory Models
Services for the Mass-Affluent Segment
The increasing ease of access and low cost of switching
between service providers and products could lead to
marketplace models of wealth management.
Source: Capgemini Financial Services Analysis, 2017; “Robotic Automation Market to Reach US$ 4.98 Bn by 2020”, GlobalNewsWire, March, 2015, accessed October, 2017 at https://tinyurl.com/y84c7tbw
Introduction of marketplace models for wealth
management products
Acceptance of Digital Services

6.
Capital Markets Trends 2018| December 2017 © 2017 Capgemini. All rights reserved. 6
Changing Demographics And Demands Of
HNWIs
Rising Leverage of Digital Channels
Source: Capgemini Financial Services Analysis, 2017
Focus on enhanced customer experience is becoming a
wealth management priority
Firms need to anticipate customer needs and identify
behavior patterns better to keep up with evolving client
needs and offer a more collaborative, individualized wealth
experience and an integrated customer journey across the
value chain
Rise in Demand of Personalized and Tailored
Offerings

7.
Capital Markets Trends 2018| December 2017 © 2017 Capgemini. All rights reserved. 7
Recent large-scale cyber-attacks
Unforeseen Risks with
New Technologies
Increasing Regulatory Scrutiny
Use of sensitive data, regulatory mandates, and digitalization
require firms to beef up their cybersecurity mitigation plans
Source: Capgemini Financial Services Analysis, 2017
Cybersecurity continues to be an important concern for
wealth management firms

8.
Capital Markets Trends 2018| December 2017 © 2017 Capgemini. All rights reserved. 8
Continuously Evolving Regulatory
Requirements
Stricter Oversight over Fee
Payment Models
Stricter Enforcement of Fiduciary
Rules
Source: Capgemini Financial Services Analysis, 2017; Gartner, Smarter With Gartner, “How to Create a Business Case for Data Quality Improvement”, Susan Moore, January 9, 2017
New regulations are putting significant focus on
investor protection and client disclosures.
Organizations are dedicating time and money to
combat these challenges.
Increase in cost of doing business for firms due to
complex regulations

9.
Capital Markets Trends 2018| December 2017 © 2017 Capgemini. All rights reserved. 9
Almost half of global
HNWIs are partial to a
hybrid approach to
‘manage ongoing advice
and optimization’a
Increased agility and
competitive differentiation
are also critical benefits of
a robust hybrid advisory
solution
The maturing of hybrid advice will have
significant impact on the wealth
management industry, although human
element will remain a key differentiator
HNWIs want the flexibility
to choose from self-service
delivery, a wealth
manager-led approach, or
a hybrid approach
a: Capgemini World Wealth Report 2017
Source: Capgemini Financial Services Analysis, 2017
Advent of hybrid advice solutions to set wealth
management on a new course

10.
Capital Markets Trends 2018| December 2017 © 2017 Capgemini. All rights reserved. 10
Advent of Cost
Efficient Digital
Solutions
Changing
Customer
Expectations
Rising
Investable
Wealth of
Niche
Segments
Increasing
Competition
Source: Capgemini Financial Services Analysis, 2017
Development of next-gen genome-based segmentation
and increased focus on traditionally underserved
segments
Accessing traditionally underserved segments can
create the next big opportunity for the wealth
management industry

11.
Capital Markets Trends 2018| December 2017 © 2017 Capgemini. All rights reserved. 11
Only 47.8% of HNWIs globally say they are fully comfortable
with the level of fees charged for wealth management
servicesa
Increasing HNWI Demand for Transparent fee Models
Stricter Regulations around Fee Models
Client discomfort with fee levels and
rising demand for transparency are
encouraging flexible performance-
based and modular-fee models
a: Capgemini World Wealth Report 2017
Source: Capgemini Financial Services Analysis, 2017
Evolution of fee models due to client demands, regulatory
mandates, and competitive pressure

12.
Capital Markets Trends 2018| December 2017 © 2017 Capgemini. All rights reserved.
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