Strategy & Practice Management
EY Releases the 2024 EY Global Wealth Management Industry Report
Over the last two decades, the key question facing wealth management1 executives was “where to play?” Our engagement with industry leaders around the world leads us to believe that the essential challenge for these leaders has shifted.
Today — faced with fundamental changes in client relationships, assets in motion, shifts in competition, and under pressure to improve financial performance and strengthen client trust and value — the industry's defining question has become “how to win?” in terms of growth, profitability and sustainable competitive advantage.
This report aims to answer this question, focusing on what is decisive for outperformance mid to long-term. It shall be both a revealing mirror to the industry and an inspiration for leaders who believe they have a responsibility to design the tomorrow of their organization and shape the future of the wealth management industry. It is our belief that any attempt to answer this question must begin with a fundamental understanding of the industry’s logic of value creation and its financial performance drivers. Therefore, we intend to avoid buzzwords or restatements of well-known industry trends. Instead, we review the drivers of evolution forcing wealth managers to rethink and reshape their core value proposition, business and operating models, data models and technology infrastructure (see Setting the scene).
We then explore the underlying industry challenges that firms must address to outperform their competitors in value creation over the next five years (see Ten underlying challenges). Finally, we suggest practical, proven concepts, defining the business and operating model levers most likely to overcome those challenges (see Key concepts for execution) followed by deep dives into four of these concepts in order to illustrate their impact and strategic value.
We have a strong belief that organizational evolution requires leadership stepping up and owning the change agenda motivated by an inspiring purpose. Strategic action needs resilience and an intrinsic drive to overcome skepticism and what we call the organizational immune system fighting innovation. Our multidisciplinary teams in key markets and regions, along with our team at the Global Center for Wealth Management, look forward to hearing your views and continuing our dialogue and collaboration.
Read the full report here: https://assets.ey.com/content/dam/ey-sites/ey-com/en_gl/topics/wealth-and-asset-management/ey-gl-global-wealth-mgmt-industry-report-04-2024.pdf
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