Table of Contents
- Overview
- Catalyst
- Summary
- Methodology
- Executive Summary
- Investment in the development of new products and services provides a
platform for attracting core target customer segments
- Innovation is centered on online, value-added and capital-protected
solutions
- Over the next two years, property and private equity products will be
given greater focus
- Profitability is only a secondary driver of innovation
- Leading wealth managers are making a greater effort to institutionalize
customer-driven innovation
- Table of Contents
- Table of figures
- Table of tables
- Targeting Lucrative Customer Segments With New Products
- Wealth managers have focused on launching new capital-protected
investments and online services
- Capital-protected investments and online services have been dominating
product launch activity
- Product launch priorities take the demands of the most important client
segments into account
- Wealth management service response: Providers need to align their
product development strategies with the demands of the most lucrative
customer segments
- Tax planning and online services have broad appeal
- New private equity investments and credit facilities will attract
strong interest from business owners
- Multi-faceted tax obligations make tax advice and new tax-efficient
products a must for entrepreneurs
- Entrepreneurs are on the lookout for new property investment
opportunities
- Activity in private equity and lending has been muted
- Wealth management service response: The best banks for business
owners will offer an expanded range of private equity and
lending offerings
- Wealth managers are targeting the retired wealthy with protected
investments and estate planning
- Capital-protected investments meet retirees' need for wealth
preservation
- Wealth transfer requirements call for tax-optimizing solutions
- Wealth management service response: New offers aimed at retirees
should focus on maximizing returns in a way that allows them to sustain
their current lifestyle and provide for heirs
- Wealthy women expect to be able to keep abreast of developments in
their portfolios and access tax advice, but they also value support
services and products for their philanthropic aspirations
- Growing concern for social justice is prompting interest in
charitable giving and socially-responsible investments
- Wealth management service response: Wealth managers are expanding
their portfolios of socially-responsible investments, as a core element
of philanthropy and charitable services
- Wealthy clients based overseas place emphasis on online portfolio
management and cross-border tax services
- Improved online functionality helps expatriates and inpatriates to
stay in control of their investments while abroad
- Wealth management service response: Online services from private
banks and wealth managers allow clients to do more for themselves
- Value-added services are primarily a complementary, but secondary
proposition; however they may help to attract wealthy women and expats
- New value-added services promise easier living at home orabroad
- Wealth management service response: Third party providers allow
wealth managers to provide the best of both worlds
- Product and service development activity has been largely on target;
however there is scope for greater attention to high-interest areas among
entrepreneurs
- Priority Areas For Innovation In Wealth Management
- Innovation is centered on online, value-added and capital-protected
solutions
- Innovative enhancements of online functionality offer client benefits
as well as cost efficiencies
- Innovation in online services has been focused on enabling seamless
international banking and wealth management
- Wealth managers are also harnessing technology to improve the
delivery of advice and service
- Wealth management service response: Wealth managers targeting
customers with international and online requirements must build their
propositions around the concepts of one-world banking and access
to premium information
- Innovation in value-added services extends the client relationship
beyond the investment portfolio
- Value-added services are increasingly international in focus
- Wealth management service response: Innovative value-added services
must offer more than local access
- Wealth managers are responding to client demand for predictability and
protection with innovative capital-protected offers
- New capital-protected investments for wealthy clients aim to provide
greater protection and exposure to a wider range of underlying assets
- Wealth management service response: Providers must be prepared to
offer innovative solutions providing higher levels of protection or more
diversified investment opportunities
- Core products and services also offer scope for innovation and
differentiation in service delivery
- Future Trends In Product And Service Innovation
- Over the next two years, property and private equity products will be
given greater focus
- The most attractive customer groups would welcome meaningful
innovations from their wealth managers
- Online services and capital-protected products top the list for future
innovation
- Future online services will attempt to empower clients more and more
- Capital-protected investments will continue to harness new underlying
assets
- New value-added services will include more sophisticated advice for
mass affluent clients and new complementary facilities related to
property and art
- New property investments will provide exposure to emerging markets
- Inheritance planning advisory services will cater to
the internationally mobile
- Current market constraints provide strong incentive for building
innovative and flexible private equity structures
- Tax planning services will also be more internationally-focused
- Emerging markets and hedge funds will also be high-priority areas
- Profitability is only a secondary driver of innovation
- Optimising innovative effort to appeal to core target customers groups
may call for more emphasis on lending and charity/philanthropy services
- New credit services will appeal to business owners
- Wealthy women should be a key target of innovation
in charity/philanthropy services
- Leading wealth managers are making a greater effort to institutionalize
customer-driven innovation
- Wealth managers are leveraging their global scope and encouraging
innovation
- Appendix
- Data
- Definitions
- Methodology
- Bibliography
- Further reading
- Ask the analyst
- Datamonitor consulting
- Disclaimer
- List of Tables
- Table 1: We have identified a number of areas where there may be a lot of
product/service launches in wealth management.Please rate each area on the
level of activity you are currently seeing(on average).
- Table 2: We have identified a number of potentially lucrative customer
segments in wealth management. Please rate each on its attractiveness as an
area to focus on.
- Table 3: Please indicate if there is "a lot of demand" from the
following customer segments for the following products and services.
- Table 4: We don' t think that activity = innovation. So, in which areas
are you seeing product/service innovation in wealth management? Please rate
each area on the level of innovation you are currently seeing (on average).
- Table 5: How would you rate each of the following segments on their
receptiveness to innovative products (on average)?
- Table 6: In which of these areas do you expect to see more innovation in
the next 2 years?
- List of Figures
- Figure 1: Capital-protected investments register the highest number of
new product launches
- Figure 2: Business owners are the most attractive client group for
European wealth managers
- Figure 3: Tax planning and online services have broad appeal
- Figure 4: Online services have been the focus of innovative effort
- Figure 5: Entrepreneurs and business owners are most receptive to
innovation
- Figure 6: Over the next two years, wealth managers will focus most on
innovations in online services and capital-protected products
- Figure 7: Wealth managers may need to commit to greater innovation in
philanthropy services and lending to appeal to women and business owners
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