July 1, 2022

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Annual Wealth Report - Diario Juridico

Annual Wealth Report – Diario Juridico

The Capgemini World Wealth Report (WWR)published today, reveals that The number of high net worth individuals (HNWIs) grew by 7.8% and their wealth increased by 8% in 2021 due to the economic recovery driven by the stock market. North Amarica It continued the growth trajectory, showing the largest increases in population and wealth in HNMI, 13.2% and 13.8%, respectively. From the point of view of the global growth rate, the unpromising growth of the wealthy in 2021 in terms of population (4.2%) and wealth (5.4%) put the region, which has dominated the growth of the wealthy in the past decade, in third place. Capgemini’s World Wealth Report (WWR) analyzes the evolution of global wealth in the past year, as well as great wealth trends and influences.

In 2021, the United States, Japan, Germany, and China topped the top four in the world’s HNWIs by market, making up 63.6% of the world’s HNWIs. This was a 0.7% increase from 2020. The super-millionaire segment (people with a net worth of $30 million or more) led the global growth in super-rich wealth and population, at rates of 9.6% and 8.1%, respectively. While the population (7.7%) and wealth (7.8%) of the next millionaires (people with a net worth between $1 million and $5 million) grew more slowly, increasing population and wealth growth rates. By contrast, the population and wealth of middle-class millionaires (people with wealth between $5 million and $30 million) rose to 8.5% and 8.4%. The report also notes that the gap between wealth bands is narrowing, indicative of a level playing field, due to improved access to information for investors and the democratization of asset classes.

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To attract emerging customers, companies must rethink their acquisition strategies

The demographics of the wealthy continued to evolve, with more and more women, LGBT people, Millennials and Generation Z members who are now looking for wealth management services. Each of these emerging customer segments has its own values, preferences, and requirements that many wealth management firms are not equipped to manage, causing many of these wealthy individuals to turn to more tailored competitors or smaller family offices. some examples:

  • Women of all wealth levels will inherit 70% of the world’s wealth in the next two generations. They are looking for companies that offer not only transparency in fees and data security, but also information on how to grow their fortunes.
  • Also, 39% of Millennials The New Rich changed service providers in the last year due to a lack of transparency. They are frequently on the lookout for new wealth managers as they demand more digitization-based interaction, education, and convenience.
  • The rise of technology and the emergence of “unicorns” (private start-ups worth over a billion dollars), backed by venture capital firms, has created a unique group of tech-rich people. This large portion of net-worth individuals offers huge potential to wealth management firms, yet only 27% said they actively pursued such prospects.

The new wave of the super-rich has unique client needs that are forcing wealth managers to adjust their business strategies. To take advantage of a largely untapped customer segment, wealth management companies must focus on offering more convenience and personalized experiences, building trust through approaches such as ecosystem collaboration, end-to-end digital services, and greater diversity when hiring new talent.

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Wealth management firms must adopt data-driven advisory capabilities

The wealth management industry is seeing a diversity of investment options, from sustainable investing (SI) to the growing proliferation of digital assets. As the ESG imperative continues to grow, wealth management companies must strive to provide educational support and product selection to the wealthy as a cornerstone of their strategies.

The report found that globally, 55% of HNWIs stated that investing in issues that have a positive impact on the environment, society and governance is critical, and 64% of HNWIs require ESG scores to understand the project’s social impact. However, 40% of wealth managers find it difficult to show the impact of ESG.

The influx of new investment avenues, such as sustainable investing and digital assets, is having a critical impact on the wealth management industry. Wealth management companies should prioritize proper education about this trend to retain their clients“, says Nilesh Vidya, Global Head of Retail Banking and Wealth Management in Capgemini’s Financial Services Strategic Business Unit.”Additionally, as we move into the new age of digital assets, wealth management firms must take advantage of ecosystem partnerships to prioritize a diverse digital portfolio of client offerings.“.

Create Customer Service Manager Jobs to deliver the perfect experience

An increasing number of wealth management firms have created a new role as a Chief Client Officer (CCO), which aims to strengthen relationships with clients and place them at the center of the wealth management process. The duties of the new role are focused on coordinating both data and digital benefits across the organization to meet changing and complex customer requirements and increase loyalty.

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The report found that by prioritizing automation and data-driven insights, wealth managers can deliver highly personalized experiences to clients and thus meet their expectations. He also adds that CCOs will play an essential role in building a comprehensive client ecosystem, while enhancing their advisory capabilities through actionable data analytics. In this way, companies can work towards adopting a ‘one stop’ approach that adequately meets all customers’ needs and suits their lifestyles and preferences, thus driving business growth.

methodology

The Global Wealth 2022 Report covers 71 markets, representing more than 98% of global GNI and 99% of global market capitalization. For the Capgemini Global HNW Insights 2022 Survey, 2,973 top net worths were surveyed in the 24 largest wealth markets in North America, Latin America, Europe, and the Asia Pacific region. Interviews and surveys were conducted with more than 70 wealth management executives in 10 markets, with representation from exclusive wealth management firms, global banks, independent brokerages and family offices; Wealth Management executives were consulted on the new technology wealth sector, market trends, the role of CMOs, and future strategies. The 2022 Wealth Managers Survey covers more than 350 answers in seven markets and asks wealth managers their opinions on industry trends, readiness for new market demands and their satisfaction with the support provided by their wealth management company.