Accenture Orbium WM survey: Survive and thrive in 2025
June 20, 2020
June 20, 2020
The survey comes at a time of great industry turmoil as seismic shifts are being accelerated by the COVID-19 pandemic. Our participants, who together manage a combined $5.6trillion AUM, provided valuable insights on the industry outlook to 2025.
Change is coming fast and will be extensive. Private banks and wealth managers might be underestimating the full extent of industry change on the horizon. However, it is surprising that our survey shows that 78 percent of WMs in Europe and Asia believe their current business models will survive through 2025.
Participants highlighted six megatrends they expect will have the most impact on making their businesses more dynamic and delivering higher client value going forward. Together, these trends will shape further opportunities for the industry to evolve and provide new offerings for the next generation of clients.
Act as a responsible corporate citizen with regard to climate change by advocating sustainable business practices and embracing net positive strategies.
Engage with clients as partners and cater to their specific needs through customized solutions.
Balance privacy with security needs to capitalize on global connectivity and deliver value while managing risks.
Seamlessly integrate internal and external partners and centers of excellence to achieve scale across business and technology.
Amplify and enable communication, collaboration, interaction, exchange and connectivity.
Use the right mix of new and traditional technologies, such as AI and machine learning, to gain a competitive advantage.
In addition to the megatrends, participants identified three fundamental industry changes that require a response:
$1.5
$1.5 trillion p.a. of assets leave firms following succession
78%
78% need to address business model inertia
However, while many see clouds ahead, surprisingly most participants remain optimistic about the untapped wealth management market opportunity in the short and long term. Clearly, to deliver future value firms must take a much broader view of the market beyond their traditional playground. The prize for doing so is significant, with approximately $260trillion in holistic personal wealth (including non-bankable assets) at play.
The future should be bright for those who can successfully transform by designing a roadmap to deliver their future ambitions, co-creating and delivering at scale and pace.
Wealth Management is now a $260 trillion opportunity. Non-bankable assets increase holistic personal wealth by 30%.