Opportunities in Emerging EU Wealth Markets


Published on

  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Opportunities in Emerging EU Wealth Markets

  1. 1. Opportunities in Emerging EU Wealth MarketsReport Details:Published:October 2012No. of Pages: 72Price: Single User License – US$3800Synopsis• This report analyses and defines the private banking/wealth management industry in Europe andprovides important basic definitions for this industry• It provides market analysis of the key client segments and their future potential, key issues ofdifferentiation, client selection criteria and an overview of the current competitive environment inmature European marketsSummaryWealth management in the European Union (EU) market is in the middle of a number of changesas banks have been looking to restructure business models in the last couple of years. TheEuropean private banking and wealth management industry is among the most important in theEuropean financial services sector. The current potential for the core private banking clientsegments – HNWIs and UHNWIs – is already significant enough to be regarded as attractive bythe industry; and it is expected to increase significantly during the next few years. The high networth individual (HNWI) population in Europe grew by 1.1% and reached 3.2 million individuals in2011 from 2.6 million in 2008 and is estimated to increase at a faster rate in the next couple ofyears. The long-term potential and expected growth rates for key countries are promising. Theorigin of client wealth in the emerging EU markets is more a matter of income flows than of pastaccumulation; according to research findings, wealth is mainly produced by new entrepreneurs,professionals and business owners.Scope• This report focuses on the European private banking and wealth management industry• It provides a business-orientated view of important elements for strategic management anddiscusses possible sources of differentiation• It discusses the main market development and diversification-related issues for emerging EUmarkets, such as client profile, current wealth allocation portfolio, and possible differentiationcriteria• It provides the description, analysis and comparison of market structures, potential, competitiveenvironment, further market development and regulatory framework– both for mature andemerging EU markets
  2. 2. Reasons To Buy• The report looks at core market development and diversification strategy issues concerning theemerging EU markets such as their market potentials, market structures or the competitiveenvironment• It evaluates the growth opportunities of a product development approach for new products, suchas property funds, on the basis of an emerging EU market• It tests a number of desk research hypotheses concerning strategic management of growthopportunities in an EU enhancement environment by an expert management survey of theindustry• The report provides detailed research on core product development topics for mature markets,such as major investment constraints, expected further development and possible sources ofdifferentiationKey Highlights• The typical client segments of the European private banking and wealth management industryrepresent only about 9% of the total population in Europe, but represent around 60% of the totalwealth held by private individuals.• Around 4.2 million core millionaires, who have between US$1 million and US$10 million toinvest, accounted for 27% of a typical private bank’s assets in 2011.• The industry’s profit margins have increased from 20bp in 2009 to 24bp in 2010, whilecost/income reached 71% in 2010.Get your copy of this report @http://www.reportsnreports.com/reports/196018-opportunities-in-emerging-eu-wealth-markets.htmlMajor points covered in Table of Contents of this report includeTable of Contents1 Executive Summary2 Introduction2.1 Background: European Financial Services and EU Expansion2.2 The Higher-Value Segment2.3 Differentiation3 Private Banking and Wealth Management: Clients and Products3.1 Definitions for a Client Segment-Focused Business3.2 Strategic Evolution of Private Banking and Wealth Management in Mature Europe3.3 Growth – the Main Challenge in Onshore European Private Banking3.4 European Offshore Private Banking Under Pressure3.5 Main Business Approaches3.5.1 Historical and Regional3.5.2 Client segmentation3.5.3 Core and non-core businesses3.6 Market Analysis and Outlook for Mature EU Markets3.6.1 The global context
  3. 3. 3.6.2 The HNWI/UHNWI market segment3.6.3 EU markets overall3.6.4 European competitive landscape3.6.5 Differentiation criteria for mature European markets4 Growth in an Enhanced EU Environment4.1 Growth in Both Mature and ‘New’ Europe4.1.1 Advantages of the EU’s common regulation4.1.2 Monetary union and the euro4.2 The Product/Market Matrix Approach4.2.1 Output4.2.2 Drawbacks4.3 Core Directions for a Growth Strategy Model5 Growth Opportunities: A Market Development Strategy5.1 Market Size by Gross Population Analysis5.1.1 Per capita GDP and average financial wealth of population5.1.2 Regional concentration of wealthier parts of the population5.1.3 The HNWI/UHNWI segment5.1.4 The EU markets overall5.2 Client Behavior and Profile in Emerging EU Markets5.3 Typical Wealth Portfolio Breakdown in the New EU5.3.1 Differences between mature and emerging EU countries5.3.2 Origins of client wealth5.3.3 Wealth portfolio summary5.4 Current Competitive Landscape in the Emerging EU Markets5.4.1 Core business models and generic strategies for market development5.4.2 Emerging private banking services5.4.3 The retail trade-up strategy5.4.4 The traditional wealth management providers: the offshore and offshore ‘plus’ strategy5.4.5 The Vienna hub approach5.4.6 Conclusions for the competitive environment5.4.7 Non-core business models5.5 Case Study: Slovakia – a Booming Economy in the Heart of Europe5.5.1 A first-class example of a market development strategy: UniBanka5.6 Market Development Strategy Summary for the Emerging EU Markets6 Growth Opportunities: A Product Development Strategy6.1 Behavior of Clients Towards Investments in Emerging EU Markets6.2 Investments in the Securities Market6.2.1 Bond markets: the convergence story has nearly come to an end6.2.2 Stock markets: the outlook remains positive6.2.3 Main investment constraints and risks – indications for product development6.2.4 Emerging product development trends6.2.5 New benchmark indices and the index-orientated approach
  4. 4. 6.2.6 Conclusions for securities-related products6.3 Property Investments6.3.1 Favorable investment rationale6.3.2 Main investment constraints and risks for product development6.3.3 Emerging product development trends6.4 The Development of New Products Based on Emerging EU Markets7 Conclusions7.1 Management Summary for Business Practice7.1.1 Market development/diversification strategies for the emerging EU markets7.2 Recommendations for Market Development and Diversification Strategies7.3 Universal and Retail Expanded Providers in Private Banking and Wealth Management7.4 Traditional Providers in Private Banking and Wealth Management7.5 Overview of Suggested Imperatives for the Strategic Management of Market Development7.6 Development Strategies in Mature Markets for Products Based on an Emerging EU Market7.7 Recommendations for Product Development Strategies7.7.1 B2C provider types7.7.2 B2B provider types7.8 Overview of Suggested Imperatives for Strategic Management of Product Development7.9 Main Implications for Future Research8 Appendix8.1 Methodology8.2 Contact Us8.3 About Timetric8.4 DisclaimerList of TablesTable 1: The State of the Art –Products and Services in Private Banking and Wealth ManagementTable 2: Client Wealth band Definitions in Private Banking and Wealth ManagementTable 3: Historical and Regional Business ModelsTable 4: Core Client Segment-Orientated Business ModelsTable 5: Non-Core Client Segment-Orientated Business ModelsTable 6: Population and Assets, EU 27 MarketsTable 7: Population Structure Within the Enhanced EU 27Table 8: Per Capita GDP and World Market ShareTable 9: Per Capita GDP Based on Purchasing-Power Parity (PPP) across European Countries(US$)Table 10: Top Five International Banks in CEE, by Business Volume and Number of BranchesTable 11: Generic Strategies for Market Development in Emerging EU MarketsTable 12: CEE Bond Markets Convergence SpreadTable 13: Market Capitalization of Some European Countries (EUR Millions)Table 14: CECE Composite index Composition as of 30 August 2012Table 15: Composition of the Dow Jones Stoxx EU Enlarged 15 Index as of 31 July, 2012Table 16: Composition of New Europe Blue-Chip Index (EUR) – NTX as of 30 August, 2012Table 17: Main General Imperatives for Market Development Strategies
  5. 5. Table 18: Main General Imperatives for Product Development Strategies on an Emerging EUMarket BasisList of FiguresFigure 1: Breakdown of Profit Pool – Western European AverageFigure 2: Key Challenges for the Private Banking IndustryFigure 3: Extensive Use of Customer DataFigure 4: Challenges of Client Segmentation in Private BankingFigure 5: Growing Regulation as a Driver of Client Segmentation ChangesFigure 6: HNWI Wealth, 2007–2011Figure 7: HNWI Population Across Countries, 2010–2011Figure 8: HNWI Population, 2007–2011Figure 9: Product/Market MatrixFigure 10: Core Directions of the Growth Strategy ModelFigure 11: Per Capita Nominal GDPFigure 12: Breakdown of HNWI Financial AssetsFigure 13: Private Financial Wealth (US$ Trillion) and Share of Wealth by Regions in EuropeFigure 14: Presence of Foreign-Owned Banks (% of Total Assets)Figure 15: Deutsche Bank’s Vienna Hub StrategyFigure 16: Asset Growths Across European RegionsFigure 17: Asset Growths of Some Central European Countries (Euro Based) in 2011Figure 18: Domestic and Foreign Investors Across CountriesFigure 19: Share Ownership Structure of the European Listed CompaniesFigure 20: Top 20 E-REGI RankingsFigure 21: Forecasts for European Office MarketsFigure 22: Real Estate Transparency 2012 – Composite Index by RegionFigure 23: World’s Most Transparent MarketsFigure 24: Real Estate Transparency 2012 – Composite Index of European CountriesContact: sales@reportsandreports.com for more information.