Across the wealth management industry, high net-worth individuals are expressing growing interest in digital engagement. How to meet clients on their terms is essential for wealth managers and firms who want to stay relevant and capture assets of future generations. What is the best strategy for dealing with this shift, amid all the other disruptors facing the wealth management industry? This deck shares three strategies on how to do this. 1. Surviving and thriving amidst digital disruption 2. Adapting to automated advisory services 3. Differentiating wealth management practices

1. 1LinkedIn Webinar_v1.0_WFS.pptx

2. 2LinkedIn Webinar_v2.0pptx
Global HNWI population grew 6.7% - 2nd lowest in 5 years
HNWI Population by Region (mn), 2009–2014
Source: Capgemini Financial Services Analysis, 2015
% Change
2013–2014
(2.1%)
7.7%
8.5%
3.02 3.31 3.37 3.68 4.32 4.69
3.12
3.39 3.35
3.73
4.33
4.68
2.95
3.13 3.17
3.41
3.83
3.99
0.40
0.44 0.45
0.49
0.57
0.61
0.45
0.48 0.50
0.52
0.54
0.53
0.11
0.12 0.12
0.14
0.14
0.15
0
4
8
12
16
2009 2010 2011 2012 2013 2014
#HNWIs(Millions)
Total 10.0
Europe
North America
Asia-Pacific
Latin America
Middle East
Africa
8.3%
4.0%
5.2%
Total 10.9
Total 11.0
Total 12.0
Total 13.7
Total 14.6 Global 6.7%
Europe lagged global HNWI growth.

3. 3LinkedIn Webinar_v2.0pptx
Despite slower growth rates, Europe is still home to
10 of the Top 25 countries by HNWI population
HNWI Population by Country (k) , 2013–2014
Source: Capgemini Financial Services Analysis, 2015
4,006
2,327
1,130
758
527
472
330
320
219
203
156
173
176
161
151
172
160
125
124
120
130
112
108
109
105
4,351
2,452
1,141
890
550
494
343
331
226
219
198
190
189
178
161
161
155
141
138
127
125
125
114
111
107
0
900
1,800
2,700
3,600
4,500
5,400
United
States
Japan
Germany
China
United
Kingdom
France
Switzerland
Canada
Australia
Italy
India
Netherlands
SouthKorea
Spain
SaudiArabia
Brazil
Russia
Kuwait
HongKong
Norway
Mexico
Taiwan
Austria
Argentina
Singapore
NumberofHNWIs(k)
2013 2014
9%
Annual
Growth (%)
2013–2014
5% 4% 4% 4% 8% 26% 10% 7% 10% 7% (6%) (3%) 12% 11% 6% (4%) 12% 6% 2% 2%
Rank in
2013
1 6 7 8 9 10 16 12 11 14 17 13 15 20 21 18 22 24 23 2519
5% 1% 17% 4%
2 3 4 5

4. 4LinkedIn Webinar_v2.0pptx
Constrained by economic uncertainties, HNWI population and
wealth of European markets witnessed below average growth
Note: Size of the bubble represents HNWI wealth in 2014
Source: Capgemini Financial Services Analysis, 2016
Norway was an outlier in Europe with significant growth, while UK, Netherlands,
Switzerland, Russia witnessed average growth.
HNWI Population and Wealth CAGRs for Top 25 Markets, 2008–2014
Fastest-
growing cluster
Moderate-growth cluster
Below-average
growth cluster
Brazil
Italy
Mexico
France
GermanyArgentina
Spain
U.S.
Saudi Arabia
U.K.
Netherlands
Canada Russia
Australia
South Korea
Japan
Switzerland
Austria
0%
16%
4%
8%
12%
20%
0% 5% 10% 15% 20%
HNWI Wealth 2008-14 CAGR
HNWIPopulation2008–14CAGR
GlobalAverage
(9.5%)
Global Average
(9.3%)
= US$1Trillion
Sample bubble
China
India
Kuwait
Taiwan
Norway
Hong Kong
Singapore
25.5% Wealth
24.4% Pop

5. 5LinkedIn Webinar_v2.0pptx
Varied HNWI Preferences on Their Wealth
Management Relationship

6. 6LinkedIn Webinar_v2.0pptx
HNWIs across the globe are currently fairly satisfied with
their wealth managers
HNWI Satisfaction with Wealth Manager
Source: Capgemini and RBC Wealth Management Global HNW Insights Survey, 2015

7. 7LinkedIn Webinar_v2.0pptx
However younger HNWIs display low trust and satisfaction
and a varied approach to wealth management
Lower Trust and
Satisfaction
Different Approach
to Relationships
A Preference for
Referrals and
Advice
73.4%
70.0%Younger
Older
… Lower Satisfaction with their
Wealth Manager
… Lower Trust and Confidence in
Wealth Manager
… Lower Trust and Confidence in
Firms
58.3%
54.3%Younger
Older 58.1%
53.5%Younger
Older
… Relationships with Five or
More Firms
… Lower Percentage of Assets
Managed by Primary Wealth Manager
14.7%
43.2%Younger
Older 58.6%
51.1%Younger
Older
39.7%
58.4%Younger
Older
… Higher Rate of Introduction to
Wealth Manager Through Referrals
… A Preference for Seeking
Professional Advice
… An Orientation to the Firm as the
Primary Relationship
49.5%
53.6%Younger
Older
73.6%
80.1%Younger
Older
Younger HNWIs
Have…
… As Demonstrated By…

8. 8LinkedIn Webinar_v2.0pptx
As a consequence, wealth managers less aligned with
younger HNWIs
Source: Capgemini and RBC Wealth Management Global HNW Insights Survey, 2015
HNWI and Wealth Manager Perspective on Understanding of HNWI
Wealth Needs by the Wealth Manager

9. 9LinkedIn Webinar_v2.0pptx
Increasing Demand for Digital Leading to
Disruption in Wealth Management Industry

10. 10LinkedIn Webinar_v2.0pptx
Five fundamental forces are driving the customer demand for
digital across industries
“Amazon-
ification”
“Google-
ification”
 Google has driven the information
age through an individual’s ability to
find a wide variety of information
quickly, easily, and for free
“Apple-
ification”
 Apple established the customer
experience at being at the center of a
firm’s strategy
 One of the first firms to articulate and
deliver a contextual and sales-
focused digital value proposition
 Drove widespread adoption of digital
social interaction
 More relevant to describe this as “
Contextual and sales-focused”
Customers Dealing with Digital in their Everyday Lives
Source: Capgemini Financial Services Analysis, 2016
Information Age
Customer Experience
Sales-focused Digital Value
Proposition
Digital Social Interaction
“Facebook-
ification”
 Through process simplification and
improvement, Uber transformed the
meaning of customer experience and
convenience
Process Simplification and
Convenience
“Uber-
ification”

11. 11LinkedIn Webinar_v2.0pptx
As expected, wealth management customers also have a high
demand for digital, led by younger HNWIs
HNWIs Considering Entire or Most of Current WM Relationship to be Digital Currently
and Five Years in Future, by Age, Q1 2014
Note: Questions asked, “To what extent would you say that your wealth management relationship is CURRENTLY conducted through digital channels?”, “In FIVE YEARS, to what extent would
you like your wealth management relationship to be conducted through digital channels?”, and “Thinking about your wider retail experience, to what extent do you CURRENTLY buy
personal items, such as clothes or books, through digital channels?”
Source: Capgemini Financial Services Analysis, 2016; Capgemini and RBC Wealth Management World Wealth Report 2015
57%
77%
59%
48%
40%
64%
83%
70%
54%
48%
0%
25%
50%
75%
100%
Global Under 40 Age 40-49 Age 50-59 Age 60+
FutureCurrent

12. 12LinkedIn Webinar_v2.0pptx
The largest age gaps are on emerging digital channels of
mobile, social media, and video
Under 40
40+
HNWI Channel Importance for Different Wealth Management Capability Areas
Note: Weighted average of respondents indicating importance level to difference capabilities per channel
Source: Capgemini Analysis, 2014; Global HNW Insights Survey 2014, Capgemini, RBC Wealth Management, Scorpio Partnership
In-Person/
Phone
Internet E-mail Mobile Social
Media
Video In-Person/
Phone
Internet E-mail Mobile Social
Media
Video
In-Person/
Phone
Internet E-mail Mobile Social
Media
Video
INFORM ENGAGE
TRANSACT

13. 13LinkedIn Webinar_v2.0pptx
Younger HNWIs and those from emerging markets more
likely to leave if firms don’t deliver integrated experience
63%
70%
68%
65%
0% 20% 40% 60% 80%
$20m+
$10m–$20m
$5m–$10m
$1m–$5m
56%
63%
63%
76%
83%
87%
65%
0% 20% 40% 60% 80% 100%
North America
Europe
Japan
Middle East and Africa
Asia-Pacific (excl. Japan)
Latin America
Global
49%
60%
68%
80%
0% 20% 40% 60% 80% 100%
Age 60+
Age 50–59
Age 40–49
Under 40
HNWI Propensity to Leave Wealth Management Firm Due to Lack of
Integrated Channel Experience (% of Respondents)
Source: Capgemini, RBC Wealth Management, and Scorpio Partnership Global HNW Insights Survey 2014

14. 14LinkedIn Webinar_v2.0pptx
As a result, HNWIs also showcase a lot of demand in the
automated advisory area
However, wealth managers seem to be underestimating the demand.
Note: Questions asked: “Would you ever consider having a portion of your wealth managed by an automated advisory service”? “In your view, would your HNW clients consider having
a portion of their wealth managed by automated advisors”?
Source: Capgemini Financial Services Analysis, 2016; Capgemini and RBC Wealth Management, World Wealth Report 2015
49%
76%
46%
52%
70%
33%
20% 19%
16%
32%
14%
18%
0%
20%
40%
60%
80%
Global
Asia-Pacific
(excl.Japan)
Europe
Japan
LatinAmerica
NorthAmerica
PercentageofRespondents
HNWI Wealth Manager
HNWI and Wealth Manager Assessment of HNWI Propensity to Use
Automated Advisory Services, Q1 2015

15. 15LinkedIn Webinar_v2.0pptx
Younger HNWIs are further propelling the rise of automated
advice
Note: Questions asked: “Would you ever consider having a portion of your wealth managed by an automated advisory service”?; “How much of your portfolio would you consider
transferring to an automated advisor”?
Source: Capgemini and RBC Wealth Management Global HNW Insights Survey, 2015
HNWI Willingness to Use Automated Advisory Services and to Transfer
Proportion of their Wealth to Automated Advisory Services, by Age, Q1 2015
Proportion of Wealth HNWIs are Willing to
Transfer to Automated Advisory Services
Willingness to Use Automated Advisory
Services
30.3%
38.6%
54.7%
71.3%70.9%
0%
25%
50%
75%
60 and
Above
50–5940–4930–39Under 30
Respondents
53.2%
60.4%
49.3%
41.4%
29.8%
46.8%
39.6%
50.7%
58.6%
70.2%
0% 25% 50% 75% 100%
60 and Above
50–59
40–49
30–39
Under 30
Respondents
Below 50% At least 50%

16. 16LinkedIn Webinar_v2.0pptx
However, current progress of automated advisors might just be
reflecting the tip of the iceberg in terms of disruption
Source: Capgemini Financial Services Analysis, 2015; http://www.investopedia.com/terms/i/industrylifecycle.asp
Automated Advisor Life Cycle in Wealth Management Industry
Pre-Birth Birth Innovation Growth Maturity Decline
Scale/MarketShare
Current Stage of
Automated
Advisory Services