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Digital Disruption in Wealth Management
​David P. Wilson
​Global Sales and Marketing / Head of Strategic Analysis Group
​C...
Agenda
A (Very) Quick Introduction
How Much Millionaire Wealth Exists in the World?
What Forms of Disruption Impact the We...
For 18 years, the WWR has been the benchmark
Changing
HNWI
Behaviors
Offshore vs.
Onshore Capital
Flows
Change and
Innovat...
Global HNWI wealth up 13.8% in 2013
* Forecast
Source: Capgemini Financial Services Analysis, 2015
www.WorldWealthReport.c...
Clusters of HNWI population and wealth growth
HNWI Population vs. HNWI Wealth Growth Across Key Markets, 2008–2013
Note: S...
Wealth industry faces most disruption since the crisis
Key Drivers of Disruption in the Wealth Management Industry
Source:...
Four fundamental digital tailwinds
Disruptive Digital Forces on Wealth Management Industry
Source: Capgemini Financial Ser...
Why has the industry not moved forward?
Digital Myths in Wealth Management
Source: Capgemini Financial Services Analysis, ...
Strong HNWI demand for digital in the relationship
HNWIs Who Expect Entire or Most of Future Relationship With Wealth Mana...
65% of HNWIs at risk of leaving firm for lack of
integrated channel experience
HNWI Propensity to Leave Wealth Management ...
Under 40s have highest digital demands
Under 40
40+
HNWI Channel Importance for Different Wealth Management Capability Are...
Source: Capgemini Financial Services Analysis, 2015
Overview of Social Media in Wealth Management
DEMAND EXISTS…
… BUT FIR...
Future leaders will view digital as essential to
providing a seamless client experience
High-Level Digital Prioritization ...
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Digital Disruption in Wealth Management - FinanceConnect Singapore

Digital Disruption in Wealth Management

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Digital Disruption in Wealth Management - FinanceConnect Singapore

  1. 1. Digital Disruption in Wealth Management ​David P. Wilson ​Global Sales and Marketing / Head of Strategic Analysis Group ​Capgemini
  2. 2. Agenda A (Very) Quick Introduction How Much Millionaire Wealth Exists in the World? What Forms of Disruption Impact the Wealth Industry? What does “Digital Disruption” Look Like? How Can Firms Move Forward? Q&A
  3. 3. For 18 years, the WWR has been the benchmark Changing HNWI Behaviors Offshore vs. Onshore Capital Flows Change and Innovation in Private Banking Ultra-HNWIs Specialized Products and Strategies Europe vs. North America HNWIs Impact of New Market Realities on HNWIs Institution- Like HNWI Behaviors Mid-Tier Millionaire Challenge Globalization and Wealth Transfer Needs-Based Client Service Models Meeting Needs of Growth Markets Adapting to New Market Realities Change in Investor Psyche post Crisis Leveraging Enterprise Value Developing Scalable Business Models Regulatory Impacts on WM Firms and their Clients Digital Opportunities for Wealth Management Firms
  4. 4. Global HNWI wealth up 13.8% in 2013 * Forecast Source: Capgemini Financial Services Analysis, 2015 www.WorldWealthReport.com CAGR 2013–2016F Europe North America Asia-Pacific Latin America Middle East Africa Global 6.4% 9.8% 7.1% 2.3% 6.0% 6.6% 6.9% Wealth expected to pass $64 Trillion by 2016 HNWI Investable Wealth Forecast by Region 7.37 9.65 10.82 10.71 12.02 14.20 18.80 9.06 10.67 11.64 11.37 12.70 14.88 17.90 8.32 9.50 10.19 10.07 10.90 12.39 15.20 5.79 6.66 7.27 7.07 7.54 7.70 8.20 1.40 1.47 1.65 1.67 1.81 2.11 2.60 0.84 1.01 1.15 1.12 1.25 1.34 1.6 0 15 30 45 60 75 2008 2009 2010 2011 2012 2013 2016F* HNWIInvestableWealth Total 32.77 Total 38.96 Total 42.73 Total 42.00 Total 46.22 Total 52.62 6.9% Annualized Growth Total 64.3 1.60
  5. 5. Clusters of HNWI population and wealth growth HNWI Population vs. HNWI Wealth Growth Across Key Markets, 2008–2013 Note: Size of the bubble represents HNWI wealth in 2013; Hong Kong has not been placed to scale on the graph as it is an outlier Source: Capgemini Financial Services Analysis, 2015 www.WorldWealthReport.com United States Japan Germany Brazil China UK France Mexico Australia Austria Russia Argentina Switzerland India South Korea Singapore Saudi Arabia Spain Netherlands Italy Taiwan Kuwait Canada Norway 0% 4% 8% 12% 16% 20% 0% 4% 8% 12% 16% 20% HNWIPopulation2008–2013CAGR HNWI Wealth 2008–2013 CAGR GlobalAverage (9.9%) Global Average (9.9%) = US$1Trillion Sample bubble Hong Kong 28.2% Wealth 27.3% Pop. Average growth Below-average growth Above-average growth
  6. 6. Wealth industry faces most disruption since the crisis Key Drivers of Disruption in the Wealth Management Industry Source: Capgemini Financial Services Analysis, 2015 Shifting Client Demographics Increasing Regulatory Pressure Changes in HNW Client Behavior Advances in Technology Demand and Capability www.WorldWealthReport.com
  7. 7. Four fundamental digital tailwinds Disruptive Digital Forces on Wealth Management Industry Source: Capgemini Financial Services Analysis, 2015 www.WorldWealthReport.com
  8. 8. Why has the industry not moved forward? Digital Myths in Wealth Management Source: Capgemini Financial Services Analysis, 2015 “HNWIs do not want digital tools, just F2F” “Digital channels will cannibalize our business” “Advisors will not use digital tools” “True integrated channel capability is too difficult” “It is a low priority compared to other issues” www.WorldWealthReport.com
  9. 9. Strong HNWI demand for digital in the relationship HNWIs Who Expect Entire or Most of Future Relationship With Wealth Management Firm To Be Digital, By Age (%) Source: Capgemini Financial Services Analysis, 2015; Capgemini, RBC Wealth Management, and Scorpio Partnership Global HNW Insights Survey, 2014 www.WorldWealthReport.com 87% 83% 81%82% 76% 66% 75% 53% 50% 82% 50% 40% 0% 25% 50% 75% 100% Asia-Pacific (excl. Japan) Japan RoW Respondents(%) Under 40 Age 40-49 Age 50-59 Age 60+
  10. 10. 65% of HNWIs at risk of leaving firm for lack of integrated channel experience HNWI Propensity to Leave Wealth Management Firm Due to Lack of Integrated Channel Experience (% of Respondents) Source: Capgemini Financial Services Analysis, 2015; Capgemini, RBC Wealth Management, and Scorpio Partnership Global HNW Insights Survey, 2014 www.WorldWealthReport.com 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
  11. 11. Under 40s have highest digital demands 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 Financial Services Analysis, 2015; Capgemini, RBC Wealth Management, and Scorpio Partnership Global HNW Insights Survey, 2014 INFORM ENGAGE TRANSACT www.WorldWealthReport.com 54% 49% 65%61% 54% 45% 48% 22% 34% 12% 35% 14% 0% 20% 40% 60% 80% Respondents(%) 52%51% 57% 53% 55% 52% 46% 25% 40% 19% 43% 20% 0% 20% 40% 60% 80% Respondents(%) 59% 58% 58% 45% 58%56% 46% 26% 36% 20% 41% 24% 0% 20% 40% 60% 80% Respondents(%) 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
  12. 12. Source: Capgemini Financial Services Analysis, 2015 Overview of Social Media in Wealth Management DEMAND EXISTS… … BUT FIRMS OVERWHELMED BY CHALLENGES… … THOUGH SOLUTIONS EXIST Social media is at a nascent stage in wealth mgmt www.WorldWealthReport.com
  13. 13. Future leaders will view digital as essential to providing a seamless client experience High-Level Digital Prioritization Roadmap in Wealth Management Source: Capgemini Financial Services Analysis, 2015 Core/Strategic Focus Transformation Focus Shift the business mindset Develop ROI model / cross-enterprise support Make build vs. buy decisions Implement quick wins to build momentum Develop big data opportunities www.WorldWealthReport.com

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