The wealth management sector worldwide now faces a vast array of brand-new issues because of the steeper-than-expected recession in the global economy that occurred throughout 2022. Long-term growth will be possible only with careful cost management, strategic investments, and a recalibration of the client mix.
Highlights from the World Wealth Report 2023, which reflects the views of 3,171 High-Net-Worth Individuals (HNWIs), 3,203 affluents, 95+ Wealth Management (WM) executives and wealth managers, along with 800 relationship managers across North America, Europe, and Asia-Pacific, include:
According to capgemini-research-institute, during 2022, HNWI wealth and population totals experienced the highest declines in a decade, dropping by 3.6% and 3.3%, respectively, as compared to 2021.
To boost revenues and solve for profitability pressures, relationship manager enablement and related technology-powered capabilities, including one-stop-shop digital workstations, are critical.
Although profitability challenges are real, capture the affluent segment early in their wealth lifetimes and grow with them as they become future HNWI clients.
Macroeconomic and geopolitical uncertainty triggered global HNWI wealth and population declines in 2022.
Challenging macroeconomic and geopolitical conditions led to a prolonged drop in investments, with several global stock indices flailing through a bear market. Result? Globally, high-net-worth individual (HNWI) wealth and population recorded steepest decline in last 10 years.
