Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

ReportsnReports – Wealth Management in France 2011


Published on

Clients lost a lot in the recession: returns, risk tolerance and confidence. Now in a rebuilding phase, wealth managers that understand their clients’ demands and motivations are in the best position to profit. Datamonitor’s analysis provides the data and insight to monitor competitors’ strategies, size their potential customer base, and understand their needs.

Published in: Business, Economy & Finance
  • Be the first to comment

  • Be the first to like this

ReportsnReports – Wealth Management in France 2011

  1. 1. Wealth Management in France adds DataMoniter Market Research Report “Wealth Management inFrance 2011 ’’ to its store.Clients lost a lot in the recession: returns, risk tolerance and confidence. Now in a rebuildingphase, wealth managers that understand their clients demands and motivations are in thebest position to profit. Datamonitors analysis provides the data and insight to monitorcompetitors strategies, size their potential customer base, and understand their needs.Features and benefits Build your customer targeting strategy using in-depth HNW demographics and needs analysis based on Datamonitors annual Global Wealth Manager Survey. Assess your competition through detailed profiles of notable players, including the customer targeting, marketing and product strategies they employ. Size your potential client base using Datamonitors proprietary data, presenting the number of affluent individuals by liquid asset band to 2014.HighlightsThere were more than 6 million mass affluent individuals in France at the end of 2008, arobust population for the countrys banks to target. However, the credit crisis led to almost1 million of those individuals having dropped out of the mass affluent population by the endof 2009.The French HNW customer is typically male and aged between 51 and 65 years old. Heearned his wealth through entrepreneurship and, judging by his portfolio, he isconservative, holding most of his liquid wealth in bonds and cash. However, these broadasset classes mask a certain risk tolerance.BNP Paribas and Société Générale are dominant players in French wealth management.Both have dedicated entrepreneurial services, and BNP Paribas also concentrates on theultra high net worth market (UHNW). In this area its promotion of philanthropy servicesthrough its annual Awards for Personal Philanthropy is highly effective.Your key questions answeredWhat strategies are my competition employing to win and keep affluent clients?Which products and services will affluent clients in France want in the next two years?How is the French wealth management structured? What role do banks and asset managersplay?How many potential clients in France have onshore liquid assets that would allow me to runa very profitable business?
  2. 2. Table Of ContentsExecutive SummaryFrance suffered along with the rest of Europe over the past three years, but its affluentpopulation is now on the riseFrances affluent population took a sharp hit in 2009Affluent French individuals are on the rise againFrench HNW investors are older, entrepreneurial, and financially sophisticatedWealth management competition is balanced between public and private and local andforeign-owned banksThe mutual and co-operative banks have separately branded private banking servicesAlong with strong domestic players, foreign-owned banks are prevalent in French wealthmanagementOVERVIEWCatalystSummaryMethodologySIZING AND FORECASTING THE AFFLUENT MARKET IN FRANCEIntroductionKey macroeconomic and demographic dataMacroeconomic trends and performanceGDPReal GDP growthInflationLong-term and short-term interest ratesStock market capitalizationIncome distribution and inequalityRegulation of wealth management in FranceKey institutions and playersSizing the onshore affluent populationFrances affluent population took a hit in 2009, and their population has not yet recoveredOnshore liquid assets contracted sharply during the financial crisis, wiping €106bn frommass affluent portfolios in 2009 aloneForecasting the onshore affluent marketFrances mass affluent population will see steady growth over the coming yearsThe AUM of French mass affluent investors will only fully recover in 2012Offshore tax evasion probe continues to rumbleHNW CUSTOMERS IN FRANCEIntroductionWho is the French HNW investor?Most French HNW individuals are between 51 and 65 years oldWomen account for just over 30% of HNW individuals in FranceThe majority of HNW individuals amassed their wealth through entrepreneurshipAt present French HNW individuals invest conservatively, but will move back into equities intwo yearsIn broad asset class terms, Frances HNW investors are conservative, with almost half oftheir portfolios held in fixed income and cashDetailed analysis shows that the wealth of French HNW individuals is spread across a wide
  3. 3. range of asset classesWithin two years, equities will increase as a proportion of French HNW portfolios, while fixedincome will decreaseFinancial planning is offered much less frequently in France than in the rest of WesternEuropeFrench HNW individuals are planners who strongly demand credit products, but take an all-or-nothing approach to adviceWhile already popular with French HNW individuals, discretionary asset management isexpected to see growing demandCredit demand is concentrated in credit cards and personal loansCostly taxation and inheritance laws give French HNW investors an enduring incentive toutilize planning services, well above the Western European averageFrench HNW individuals are financially sophisticated and tend to be loyalFrench investors are financially knowledgeable, with a strong understanding of risk andreturnFrench HNW investors value face-to-face contactLoyalty to wealth managers is high among French HNW individualsThe majority of French HNW investors hold 51–70% of their portfolio with one wealthmanagerInternal referrals are the most effective means of customer acquisitionCredit Suisses One Bank strategy is reaping significant rewardsCOMPETITOR DEVELOPMENTS IN FRENCH WEALTH MANAGEMENTIntroductionBusiness models of Frances wealth managersCommercial banks account for a majority of Frances banks but only a minority of thebranch footprintFrances asset managers and insurers have an appreciable wealth market shareThe French wealth management market is predominantly bank-ledCompetitor trends[Missing title]Foreign-owned banks are prevalent in French wealth managementCompetitor profilesOddo Banque PrivéePerformance: growth in AUM but continued declines in net banking incomeBanque Privée 1818BNP Paribas Wealth ManagementSociété Générale Private BankingCrédit AgricoleAPPENDIXSupplementary dataDefinitionsHigh net worth (HNW)Mass affluentLiquid assetsMeasures of growthOnshoreMethodologyOverall methodologyGlobal Wealth Managers Survey 2011
  4. 4. Global Wealth Model MethodologySelected bibliographyFurther readingAsk the analystDatamonitor consultingDisclaimerLatest Market Research Reports: Radiation Detection Materials Markets - 2011 Planned LNG Terminals Market - Global Analysis, Competitive Landscape and Capacity Forecasts to 2016 Printed Battery Markets - 2011 Planned Oil and Gas Pipelines - Global Market Analysis, Competitive Landscape and Major Projects to 2015 Top Revenue Mobile Commerce Applications 2011-2016 Machine-to-Machine (M2M) Companies and Applications 2011About Us:ReportsnReports is an online library of over 75,000 market research reports and in-depthmarket research studies & analysis of over 5000 micro markets. We provide 24/7 online andoffline support to our customers. Get in touch with us for your needs of market researchreports.Follow us on Twitter: Facebook Page: Priyank7557 Rambler road,Suite 727, Dallas, TX 75231Tel: +1-888-989-8004 EXT 106E-mail: sales@reportsandreports.comhttp://www.reportsnreports.comVisit Our Market Research Blog