The majority of wealth managers around the world agree that intergenerational wealth transfers will be a big source of business for the industry in the near future, according to a leading data and analytics company.

According to some Latest reports it is identified intergenerational wealth transfer as one of the key issues that is affecting the industry. Targeting individuals who are about to inherit their parents’ assets will prove to be a successful strategy to grow private banks’ assets under management. A leading company estimates that over the next 10 years, £215bn of millionaires’ investable wealth will be passed on to the next generation in the UK alone.

Wealth Management expert notes: “This constitutes 20% of UK HNW individuals’ liquid wealth. Different studies estimate that up to 90% of children switch financial advisors after their parents pass away and they take control over family’s assets. They can be a source of new business, but providers also have to focus on retaining assets after inheritance.”

The key to success understands the needs of a new generation of clients. There is a common belief that the new wave of investors and ages’ above all, require access to digital channels. However, a recent study found that millennial investors are still frequent users of traditional channels.

Expert further comments that: “Millennials require access to human financial advisors. In fact, the share of investors who contacted their investment management provider face-to-face is higher among millennials than among baby boomers or Generation X. Younger generations require true multi-channel proposals that allows them to talk to their provider when they want, and how they want – be it in branch, over email, by telephone, or on Skype.”

Millennials who are still building up their wealth are open to new solutions, and are more likely to have tried robo-advisors than their parents. However, ultimately they keep the majority of their assets within their main bank.

Further the expert states: “This is because millennials are paying off their mortgages, and their first savings land in the accounts they hold with mortgage providers. This puts universal banks in a privileged position to bond with individuals from the very beginning of their financial journey.”

Table of Contents

Table of Contents


1.1. Market summary 2

1.2. Key findings 2

1.3. Critical success factors 2


2.1. Wealth managers need to get ready for quantitative tightening 9

2.1.1. Key wealth markets are normalizing their monetary policies in 2018 9

2.1.2. Wealth managers should discuss the effects of higher rates on the typical HNW portfolio, as HNW investors remain unprepared 9

2.1.3. Amid limited demand for cash products, a reshuffle of the typical bond portfolio is called for 11

2.1.4. In the equity space we will see a focus on financials and consumer staples 13

2.1.5. Rising demand for commodities should be redirected to gold or other precious metals 13

2.1.6. In the offshore space, access to the US markets will be even more important than currently 13


3.1. All private wealth managers will need to adapt to CRS 15

3.1.1. Offshore wealth managers are directly in the firing line of CRS 16

3.1.2. Automation of CRS compliance will become a competitive advantage 17

3.1.3. Any repeal of FATCA would create a huge competitive advantage for US wealth managers 18

3.1.4. CRS is prompting divestment of certain types of high-risk business in wave one countries 19

3.1.5. Private wealth managers based in Switzerland should benefit from CRS 19

3.2. MiFID II entered into force on January 3, 2018 20

3.2.1. Wealth managers expect MiFID II to encourage price competition 20

3.2.2. Many EU governments are still struggling with MiFID II transposition 20

3.2.3. Research teams will downsize following MiFID II implementation 21

3.2.4. European countries will not be the only ones affected by MiFID II 22

3.3. GDPR and the fiduciary rule will add to the compliance burden 23

3.3.1. Banks will have to roll up their sleeves as the GDPR deadline approaches 23

3.3.2. The US is preparing for implementation of the fiduciary rule 23

3.4. Changes to non-domicile legislation will fuel HNW migration 23

3.4.1. UK long-term non-doms will no longer benefit from special status 23

3.4.2. New rules will impact HNW offshore investments 24

3.4.3. Other European countries willing to reduce non-doms’ tax bills will compete with the UK 24


4.1. The new generation of clients require different acquisition strategies 25

4.1.1. Intergenerational wealth transfers are an opportunity for AUM growth 25

4.1.2. The younger generation is also growing its own wealth 26

4.1.3. Millennials are digital-savvy, but they still expect an omni-channel proposition 27

4.1.4. Millennials take word of mouth to the next level 28

4.1.5. Millennials are more likely to use multiple providers to manage their wealth, with their main bank dominating investment share 29

4.1.6. Investor education will be an important factor in millennial retention 30

4.2. Client targeting strategies will differ depending on the provider’s business model 31

4.2.1. Being part of the investor journey from its very beginning is key 31

4.2.2. Providers with a wide range of products are in a privileged position, and should focus on cross-selling 31

4.2.3. Private banks should reach millennials through their grandparents 31

4.2.4. Challengers should do more than just offer investments 32

4.3. Retention management has to become more important amid increasingly uncertain investment conditions 32

4.3.1. Downward volatility has the potential to cause significant customer churn 33

4.3.2. The importance of the advisor relationship poses a challenges to wealth managers 34

4.3.3. Education will become increasingly important, andinvestors must be made aware of the effects volatility could have on their wealth 35


5.1. With fee income growth constrained due to competition revenue sources will diversify, and HNW lending will become more important 38

5.1.1. US securities-based lending innovation has made it a common service among even small advisors 38

5.1.2. Recent innovation aims to provide lending facilities to even small-scale investment advisors 39

5.2. Wealth managers have long prioritized managing both sides of the client balance sheet 41

5.2.1. Many private wealth managers have prioritized growing the earning asset base in the aftermath of the global financial crisis 41

5.2.2. UK-based private wealth managers have focused on using loans to tie in investment clients 41

5.2.3. Swiss private banks have used securities-based lending to appeal to entrepreneurs 41

5.3. New investment products will become mainstream 41

5.3.1. Tighter regulation and higher returns will tempt more investors into new alternatives 41

5.4. For millennials investments are personal, which creates room for impact investment growth 42

5.4.1. Offering impact investment services will become more important as the next generation takes over the reins 42

5.4.2. Credit Suisse and UBS are strongly positioned to benefit from rising demand for impact investments 44

5.4.3. Impact investing will eventually experience greater demand than traditional philanthropy 45

5.4.4. Impact investment demand will be further supported by government incentives 46

5.5. Alternative finance opens opportunities for those seeking high returns, with P2P lending a particular standout 47

5.5.1. P2P lending platforms can help wealth managers expand their target client base – and HNW investors will also want in 47

5.6. Recent regulatory tightening will result in more investors seeing cryptocurrencies as an investment rather than a speculation 48

5.6.1. Short of outright bans, regulatory tightening will add respectability to the market 48

5.6.2. The value of bitcoin and ethereum mean traditional wealth managers can no longer ignore them entirely 49

5.6.3. Wealth managers should capitalize on cryptocurrency demand before first-mover advantage is lost 50

5.6.4. Wealth managers need to ensure their clients can quickly access and pay using cryptocurrencies 51

5.6.5. Funds and investment vehicles with cryptocurrency themes can be useful alternatives to direct investing 51

5.6.6. Wealth managers must acknowledge the speculative bubble without discounting the entire sector 51

5.7. ETFs are forecast to reach $7.6bn in value by 2020, with younger investors driving growth 52

5.7.1. Younger consumers have driven ETF interest but retiring baby boomers also see value, suggesting growth will continue to be rapid 53

5.7.2. The portfolio implications are varied, but wealth managers can benefit 54

5.8. Fintech will lead product innovation 55

5.8.1. Traditional investments can evolve into new opportunities for securities investing 56

5.8.2. Other illiquid assets could effectively be converted into securities by enterprising wealth managers 56


6.1. Wealth managers will continue to buy stakes in fintechs 58

6.1.1. Robo-advisors need to expand their propositions to keep their clients 58

6.1.2. Robo-advisors will not be able to afford outflow of clients 59

6.1.3. Incumbents are entering the robo space through acquisitions 59

6.1.4. The future of financial advice leaves room for different providers, although more acquisitions are likely 59

6.1.5. Robo-advisors and traditional players will continue to co-exist, with the latter’s dominant position unchallenged 60


7.1. Abbreviations and acronyms 61

7.2. Definitions 61

7.2.1. Baby boomers 61

7.2.2. Generation X 61

7.2.3. HNW 62

7.2.4. Mass affluent 62

7.2.5. Millennials 62

7.3. Methodology 62

7.3.1. 2017 Global Wealth Managers Survey 62

7.3.2. 2016-17 Mass Affluent Investor Surveys 63

7.3.3. Exchange rates 63

7.4. Bibliography 64

7.5. Further reading 67

Key benefits of buying this profile include:

– Understand the key trends impacting the wealth management industry in 2018 and how to respond.

– Discover drivers behind intergenerational change among your clients, and the customer targeting strategies that will help you retain existing clients and engage with new customers.

– Learn about key regulatory developments and how to leverage them to your organization’s benefit.

– Stay ahead of your competitors by keeping up to date with product innovation in the industry.

– Discover how HNW asset allocation preferences are set to evolve in 2018, and what this means for your business.

About GlobalData 

GlobalData is a leading provider of global business intelligence including market, competitor, and product and customer information. It provides in-depth research, analysis, data and forecasts through a range of interactive online databases, reports and management briefings. GlobalData has a large team of experienced research and analysis, consulting, and marketing experts. It has a global presence, including key offices in the US, Europe, and Asia. The group has over 50 years of experience of delivering market intelligence data and analysis and a highly experienced senior management team.

About is a syndicated report platform with a wide variety of industry reports from reputed industry publishers. is promoted by DART Consulting. lists the variety of reports at the best price with seasonal discounts and promotion codes.

This report is available at

Contact us:

Direct: + 91-80- 4224 7136, 953-807- 6063


Share :