Intelligent strategies for winning with the ultra-wealthy
WorldReportSeries2024 WealthManagement Intelligentstrategiesforwinningwiththeultra-wealthy Bridgewealthmanagementandfamilyofficestrengthstofuelgrowth 2WorldWealthReport2024 Contents Foreword3 ExecutiveSteeringCommittee20244 Executivesummary5 NavigateHNWIwealthrecovery duringuncertaintimes6 Leveragingbehavioralfinanceto reconnectwithHNWIs18 Ultra-HNWIs:Themostlucrative segmenttoattractandretain30 Conclusion40 Methodology41 PartnerwithCapgemini43 WorldWealthReport20243 Foreword Wearebackinbusiness!Whileresearching,analyzing,andwritingtheWorldWealthReport2024,our28theditionofthisreport,wediscoveredasignificantinvestmentshift:globally,high-net-worthindividuals(HNWIs)arereachingunprecedentednumbersandwealthlevels.And,aswealthgrows,HNWIsarerevisitingcautious2022and 2023assetpreservationtendencies.Riskaversionissubsiding,andHNWIsareslowlyrebalancingbetweensafetyandgrowth. Despitethisemergingpositivetrend,theglobalenvironmentisnotsobright,withissuesrangingfromgeopoliticstoinflation.Uncertaintyisfurthercompoundedasmanycountriesholdelectionsin2024.Asthemarketupswingunfolds,thetimehascomeforwealthmanagementfirmstodivedeepintoclients’evolvingbehaviorandexpectations,andtoprioritizemeaningfulandtimelyengagements.Theroadaheadisn'twithouthurdles:macroeconomicuncertainty,geopoliticaltensions,regulatoryagendaandariseinoperatingcostsaresqueezingthebottomline. Likeinallothersectors,artificialintelligence(AI)isfastemergingasatransformativeforcetoenhanceclientintimacyinwealthmanagement.Fromcreatingandthenregularlyupdating360-degreeclientprofilestoleveragingbehavioralfinancetechniques,AIispromisingtohelprelationshipmanagersrecognizepsychologicalbiasesthatmayinfluenceinvestmentdecision-making.Moreover,generativeAIcanenablehyper-personalization,allowingfirmstotailorservicetouchpointstoclients'uniqueneeds,preferences,andlifeevents.Theresult?Moments-that-matterengagementandthefoundationsofsolid,long-lastingrelationships. Morethanever,wealthmanagementfirmsseeksustainedprofitability,andthehighlyconcentratedultra-HNWIsegment–individualswithmorethanUSD30millionininvestableassets–presentsahighlylucrativeopportunity.However,familyofficesmaybebetterpreparedtoplaytheorchestratorroleandhandlethemulti-generationalandmulti-jurisdictionalneedsofthispopulation,throughabroadrangeoffinancialandnon-financialvalue-addedservices.Sothegameison:whocanbethebestprovideroftheone-stop-shopservicesuiteneededtobestservetheultra-wealthy?Whilecompeting isoneoption,collaboratingorservicingisanother–andwealthfirmsthatstrikeacompetitiveandcollaborativebalancewithfamilyofficescanforgerevenue-generatingbusinesspartnershipssupportingthefamilyfirms. Ihopeourreportoffersapathtohelpyougetstarted. AnirbanBose FinancialServicesStrategicBusinessUnitCEO&GroupExecutiveBoardMember,Capgemini 4WorldWealthReport2024 ExecutiveSteeringCommittee WealthManagementFirms MichelleOwen GlobalHeadofDistribution,GlobalPrivateBankingHSBC PierreRamadier CEO,WealthManagementInternationalMarketsBNPParibas RaymondAng GlobalHead,PrivateBankandAffluentClientsStandardChartered BarryMetzger ManagingDirector,IncomeandWealthSolutions CharlesSchwab KabirSethi WealthManagement Leader Ex-LPLFinancial GregGatesmanHeadofInternationalClientDevelopment, WealthManagementAmericas UBS NicDreckmann CEOa.i. JuliusBaer MichelLonghini GroupHead,GlobalPrivateBankingFirstAbuDhabiBank RanjitSSamra HeadofProduct&Experience J.P.MorganWealthManagement FamilyOffices,IndustryBodies,andExperts PhilippePerlesCommitteeMemberAssociationofSwissAssetandWealthManagementBanks UrsBoltWealthTechExpertBoltMoney YannGalet MFOFounderandFamilyOfficer GConsultFinances ChristianStadtmüller ManagingDirector HQTrust SébastienCapt CEO PrimePartners WealthTechsandTechLeaders ChristineCirianiHeadofInternationalDigitalWealthInvestCloud TobyBrownHeadofGlobalBankingSolutionsGoogle NoahKraehenmann GlobalMDWealthManagement Temenos ArnaudPicut CEO Aixigo WorldWealthReport20245 Executivesummary Theglobaleconomycontinuestorecoverfrom2022challenges.Althoughinterestratesremainelevated,centralbankssignaledanendtoratehikesinH22023,withprospectsofratecutslatethisyearor inearly2025. NavigateHNWIwealthrecoveryduringuncertaintimes Buoyedbyaresurgingequitymarketandimprovingmacroeconomics,globalhigh-net-worthindividual(HNWI)wealthandpopulationroseby4.7%and5.1%in2023.NorthAmericapostedthemostrobustrecovery,expandingby7.2%inHNWIwealthand7.1%inHNWIpopulation.Asia-Pacificexperienced4.2%HNWIwealthgrowthanda4.8%riseinHNWIpopulation. EuropeanHNWIwealthandpopulationgrewmoremodestly,at3.9%and4.0%,respectively. Despiteongoingmarketunpredictability,HNWIsarerebalancingtheirportfoliostomeetgrowthgoals.InJanuary2024,cashholdingsnormalizedto25%,downfrommulti-decadehighs.Allocationstoalternativeassetsroseto15%from13%in2023,reflectinginvestordesiretodiversifyintohigh-returnassetclasses. However,wealthmanagementfirmscontinuetostrugglewithprofituncertaintybecauseofescalatinggeopoliticalconflicts,electionsinmajoreconomies,recessionworries,evolvinginterestra
