The wealth management industry has traditionally seen strong growth with little capital intensity. But today, tightening regulations, increasing competition, and a slowing global economy are forcing changes in wealth management strategies.
On top of this, customer expectations are evolving fast. Clear communication is paramount: wealth clients want to know exactly what they’re paying for, while firms need to better understand how much clients are willing to pay. Customers increasingly expect providers to offer the convenience of digital apps, features, and channels, but wealth management digital strategy has lagged well behind commercial banking and other sectors.
BCG works with wealth management firms so that they can fully understand the strategic implications of a changing industry and translate them into competitive advantage.
Growth & Strategy
The growth strategy of a wealth management firm drives its success. BCG works with wealth managers to reach their organic and nonorganic growth targets, ensuring that they align their operating model with their strategic direction and maximize efficiency.
Smart Revenues
Shrinking margins are forcing banks to focus not just on the bottom line but on the tricky top line, as well. BCG addresses this pain point by zeroing in on the biggest drivers for revenue enhancement—pricing, sales force effectiveness, and performance management.
Operations & Technology
Wealth managers face internal hurdles, such as legacy systems and siloed operations, as well as the external challenges of increased risk management and regulatory shifts. We support wealth managers on both fronts, ensuring continuous delivery of results, highly adaptable outcomes, and optimal cross-functional collaboration.
Client Service Model
Rising client expectations in the wealth management industry are driving a shift away from a product-sales mindset to a focus on putting the client at the center of activities. Our extensive experience in client segmentation, value-based offerings, and holistic advisory propositions allows us to help wealth managers develop differentiating client journeys.
Digital
The wealth management industry has access to vast amounts of data but has been slow to adopt advanced analytics. Digital transformation, including making use of data along the entire client life cycle and across the value chain, can result in a 50% increase in revenues and a 20% decrease in operating costs. Our wealth management consultants work with BCG’s experts in advanced analytics, digital platforms, and digital incubators to improve client service—and unlock long-term potential.
Data Assets and Benchmarks
BCG employs several long-standing proprietary wealth management databases models that blend science and deep market knowledge, including our Global Wealth Market Sizing and Global Wealth Manager Performance Benchmarking. BCG’s Global Wealth Market Sizing assesses private financial health in 97 markets and 18 cross-border financial centers, covering 99% of global wealth. BCG’s Global Wealth Manager Performance Benchmarking is unique in the market with more than 130 annual participants, providing global and regional coverage of all dimensions of financial performance and operational efficiency.
North American wealth managers entered the recent crisis in worse shape than they entered the Global Financial Crisis of 2008/2009. This creates a pressing need for change, and a revitalized agenda is called for to establish strategic priorities and a winning game plan.
The centuries-old wealth management industry has started to shift as a new generation of investors put environmental, social, and governance priorities at the top of their agendas.
