Wealth Management Competitive Dynamics, 2021 Update - Review of Wealth Managers by AUM, Financial Performance, Innovative and Competitive Trends
October 2021
44
About the Report
About the Report
Wealth Management Competitive Dynamics, 2021 Update-Review of Wealth Managers by AUM, Financial Performance, Innovative and Competitive Trends
Summary
This report benchmarks the world's leading wealth managers by managed client assets and financial performance. It covers the 47 most prominent institutions, including standalone private banks and wealth managers as well as competitors that are part of larger universal financial groups. All international public wealth managers with over USD 100bn in private client assets under management are featured in the report.
Wealth management's top players endured the difficulties of the pandemic well, recovering most of the assets under management (AUM) lost to early market disruption and ultimately growing overall client assets. Positive net inflows and continued growth in revenue-even as the pandemic continues to grind on-means the industry has not suffered anywhere near the same level of disruption as it did during the global financial crisis. While profits dipped, private wealth management remains a bright spot for banking and is well placed to grow into the recovery.
Scope
- Private wealth management client assets ended 2020 at an all-time high.
- Asset management consolidation is reshaping the industry and resulting in more top wealth managers adding to their asset management divisions.
- Profits were hit by the COVID-19 pandemic, but less so than other parts of banking.
Reasons to Buy
- Benchmark your AUM and financial performance against the biggest players in the industry.
- Understand the challenges in growing client assets in different geographies.
- Learn about your competitors' strategies related to expanding client books.
- Find out how profitable the wealth management industry is.
- Identify the industry's best practices in managing operating costs and boosting revenues.
- Discover how wealth managers' M&A activity affects their financial performance.
Products
Companies
ABN AMRO Bank of America Merrill Lynch Barclays BNP Paribas BNY Mellon Bank of China Bank of Montreal Charles Schwab China Merchants Bank Citigroup Citi Private Bank Credit Agricole Credit Suisse Deutsche Bank DBS EFG International Goldman Sachs HSBC HSBC Private Bank J.P. Morgan Julius Baer Morgan Stanley Northern Trust Pictet Royal Bank of Canada Royal Bank of Scotland Santander Societe Generale Standard Chartered UBS US Trust Vontobel Wells Fargo OCBC Bank of Singapore DBS UBP Raymond James St. James's Place Investec Bank Cantonale Vaudoise Rothschild & Co Nordea
Table of Contents
Table of Contents
Table of Contents
1. Executive Summary
1.1 Leading wealth managers weathered the pandemic well
1.2 Key findings
1.3 Critical success factors
2. Wealth Managers by AUM
2.1 Leading wealth manager AUM recovered by the end of 2020
2.2 The top end of the private wealth market saw key shifts
2.3 Half-year figures suggest the industry is growing strongly
3. Financial Performance
3.1 Profits were down in 2020, but nothing like the global financial crisis
3.2 Group performance was heavily impacted by the pandemic
4. Competitive Trends
4.1 GlobalData's Company Filing Analytics: top trends
4.2 ESG dominates competitive positioning
4.3 Regulatory issues are becoming more pressing around data
4.4 Robo-advice and digital platforms
4.5 Mass affluent individuals are growing more attractive to leading private wealth managers
5. Appendix
5.1 Supplementary data
5.2 Abbreviations and acronyms
5.3 Secondary sources
5.4 Further reading
About GlobalData
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List of Figure
List of Figures
Figure 1: In 2020, consolidation and growth were the hallmarks of the private wealth management market
Figure 2: Inflows were up in 2020 despite a challenging start to the year
Figure 3: Charles Schwab's acquisition of TD Ameritrade boosted its inflows to almost a third of total AUM
Figure 4: The performances of the top 10 were starkly divided .
Figure 5: Profits fell in 2020, but the impact of the pandemic on the cost/revenue ratio was muted .
Figure 6: Growth in profits was strongest among Swiss private banks
Figure 7: Revenue growth was sluggish in 2020, while costs grew in line with past trends
Figure 8: Wealth revenue growth was driven by higher trading volumes .
Figure 9: Wealth FTEs fell in 2020, which helped keep costs contained
Figure 10: Good control over operating costs failed to prevent a collapse in banking profits .
Figure 11: Diversified banking groups suffered the most due to the pandemic, with non-wealth lines dragging down profit
Figure 12: The majority of top players that recorded increased profits in 2020 were Swiss banks
Figure 13: Overall there was a shift towards wealth, but few players saw notable changes in 2020 .
Figure 14: ESG figures ever more prominently in the strategies of the top international wealth managers
Figure 15: No economy has been immune to COVID-19, but several key Asian economies have performed well .
Figure 16: North American HNW investors expect wealth managers to suggest impactful companies to invest in .
Figure 17: North America continues to lead the way in ESG investment management
Figure 18: Demand for ESG investments is rising strongly among Asia Pacific's HNW investors .
Figure 19: Major wealth managers fare poorly in terms of regulatory compliance
Figure 20: Even among HNW individuals, channel preferences are shifting towards digital .
Figure 21: Mass affluent investors will see their wealth grow by 6.4% in 2021 to just over USD 78tn
Figure 22: Client AUM is finely balanced between retail and HNW clients
List of Table
List of Tables
Table 1: Published client AUM for the top 15 private wealth managers, 2020-H1 2021
Table 2: Private wealth management minimum thresholds
Table 3: Notable asset management acquisitions, 2020-21
Table 4: Selected Citibank share among mass affluent individuals in divestment markets, 2020
Table 5: Net new money from reporting wealth management competitors (USD bn), 2015-20
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