Sizing the European Retail Investor Market

by Ashley Globerman,  Isabella Fonseca, July 2, 2014
Industry Trends
EMEA

Abstract

In the second of three reports that analyze the retail investor market, this report addresses six Western European countries with respect to their overall economic health, regulatory drivers, retail investor market, and wealth management market maturity and sophistication.

Sizing the European Retail Investor Market aims to provide firms with an understanding of the retail investor landscape across Western Europe. Celent will provide recommendations on where wealth management solutions providers should focus their attention in the near term. The following countries are included in this report: France, Germany, Italy, Spain, Switzerland, and the United Kingdom.

The other reports in this series are Sizing the Retail Investor Market in the Americas and Sizing the Asian Retail Investor Market.

European retail investors are a diverse group with differing levels of affluence, investment knowledge, preferences, and expertise. Factors such as investor confidence and regulatory reform in the aftermath of the financial crisis and the ongoing European debt crisis are some of the many factors influencing the size and characteristics of the retail investor market.

“In the aftermath of the financial crisis, there has been a mixed growth rate across Europe in terms of retail investor population. A few of the many factors contributing to the retail investor population size include: cultural and historical views towards financial markets, loss and recovery of assets due to the financial crisis, and more stringent regulation of the markets,” says Ashley Globerman, Analyst within Celent’s Wealth Management Group and coauthor of the report.

Wealth management and private banking firms serving this group have had to adjust to a strict regulatory environment and an increasingly sophisticated and diverse client base. Such firms are focused on implementing strategies that will help them retain clients and high-value advisors in addition to expanding their client base. “Some progress has been made by firms, but investor confidence is not at its pre-crisis level. Wealth management firms face competition and need to understand their client base better than before in order to be successful in this environment,” says Isabella Fonseca, Research Director within Celent’s Wealth Management group.

In order to make objective assessments, Celent has evaluated the markets on a five-point system across a number of factors.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

Introduction

3

Country Market Overviews

5

 

France

6

 

Germany

6

 

Italy

6

 

Spain

6

 

Switzerland

6

 

United Kingdom

7

Regulatory Drivers

8

Retail Investor Market Overviews

9

Wealth Management Market Maturity and Sophistication

23

 

France

23

 

Germany

23

 

Italy

23

 

Spain

24

 

Switzerland

24

 

United Kingdom

24

Celent’s Recommendations

25

 

France

25

 

Germany

25

 

Italy

26

 

Spain

27

 

Switzerland

27

 

United Kingdom

28

Conclusion

30

 

France

30

 

Germany

30

 

Italy

31

 

Spain

31

 

Switzerland

32

 

United Kingdom

32

Leveraging Celent’s Expertise

34

 

Support for Financial Institutions

34

 

Support for Vendors

34

Related Celent Research

35

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