Wealth Management Update 2002: The Race to Become the Trusted Advisor

by Isabella Fonseca, October 8, 2002

Abstract

Boston, MA, USA Milan, Italy October 8, 2002

Celent predicts that financial institutions can expect to earn close to US$800 billion in management fees at the end of 2007, with the high net worth segment accounting for the bulk of the fees with 37 percent. The mass affluent segment will not be far behind with 33 percent.

In a new report entitled " ," Celent examines the current state of the wealth management market in North America, Europe, and Asia Pacific including customer and product segmentation, asset accumulation, spending, and projected revenues from wealth management. The research also provides an in-depth explanation of the components of a wealth management solution and briefly highlights the technologies available to help financial institutions seize the opportunities inherent in serving this marketplace. The report concludes with Celent痴 view of the future outlook for wealth management systems at banks, brokerages, insurance companies, and private banks.

Isabella Fonseca, Co-author of the report, states," Based on speaking with major financial institutions in North America, Europe, and Asia-Pacific, we found a number of differences in these regions, specifically in the solutions available in the market, in functionalities such as account aggregation and multi-currency, and in the implementation model. Celent predicts North America will continue to lead in the adopting wealth management technology well into 2007, with Europe will not be far behind. However, Asia-Pacific will exhibit the most aggressive compounded annual growth rate between 2001-2007 at 40 percent.

According to

Pam Brewster, Co-author of the report, "Despite all of hoopla surrounding the latest cutting-edge technology driving the wealth management market, the quality of financial advisors will ultimately determine the level of success for each financial institution. As a result, training, nurturing, and retaining financial advisors still remains a top priority for all of the financial institutions in the wealth management market."

Celent will follow-up this market overview report with a four-part vendor evaluation series that will analyze and rank leading wealth management technology providers based on their core functionality.

A is available online.

of Celent Communications' Retail Banking, Retail Securities & Investments, and Life/Health Insurance research services can download the report electronically by clicking on the icon to the left.

        

Send mail to info@celent.com with questions or comments about this Web site.

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

 

Boston, MA, USA Milan, Italy October 8, 2002

Wealth Management Update 2002:  The Race to Become  the Trusted Advisor

Return to report Abstract

 

EXECUTIVE SUMMARY 3
INTRODUCTION 4
MARKET OVERVIEW 8
  Customer Segmentation Review 8
  Product Segmentation 10
  Projected Asset Accumulation 12
  Projected Revenue From the Affluent 14
MARKET PENETRATION 15
  Global Market Adoption 15
  Regional Differences 15
WEALTH MANAGEMENT TECHNOLOGY 17
  Components of a Wealth Management Solution 17
  Wealth Management Vendors Preview 18
  Vendor Profitability 24
  Cost of Technology Implementation 25
LOOKING AHEAD 28
  Who Will be the Trusted Advisor? 28
  It's all About Human Touch 30

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