Portfolio Management

Shattered Wealth Dreams

Ferrari car parked in front of the historic Cova coffehouse located in Via Montenapoleone street, Milan, Lombardy, Italy
For wealth management, are the good times gone?
  • Why it matters

    Why it matters

    Faced with dwindling earnings in various aspects of their business, banks are pinning their hopes on wealth management as a source of income. If that changes due to the market environment, there may not be much left.

  • Facts

    Facts

    • There were approximately 15.4 million millionaires worldwide in 2015, with combined assets of $58.7 trillion.
    • Wealth managers are now paying the price for a lack of cost discipline in the past.
    • While growth markets in Asia remain promising, they also pose unique challenges for foreign companies seeking to differentiate themselves from the local competition.
  • Audio

    Audio

  • Pdf

 

It’s been a rough few years for global banks since the financial crisis. Investment banks that made a fortune before 2008, trading on their own accounts and selling complex financial products, have been forced to look elsewhere for profits as regulators cracked down on the riskiest practices that brought the global economy to its knees.

Many have turned to private wealth management; basically, managing the money of the rich. With more millionaires and billionaires around the world than ever before, it seems a no-brainer, the ailing financial sector’s last resort for earning adequate returns.

But according to a study conducted by management consulting firm Oliver Wyman, together with Deutsche Bank’s research department, those good times too are about to come to an end.

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