World Wealth Report

You are in: Industries We Serve

• Financial Services
  • Our Financial Services Solutions
    • Wealth Management
      • World Wealth Report Overview
      • State of the World's Wealth
      • Asset Allocation
      • Spotlight - Service Models
      • Green Investing
      • Regional Facts
      • About the World Wealth Report
      • NEW! WEALTH the book
      • Merrill Lynch Global Private Client
      • WWR Press Releases
      • WWR Archives

Spotlight

Despite recent market turmoil, extraordinary growth opportunities still exist in mature and emerging markets. Over the last 3 years, we have seen double digit growth in emerging markets and strong overall net growth in HNWI wealth in mature markets. However, given the increased competition in the market and the financial challenges firms have faced, there is less room for error when making strategic market entry decisions. Firms are getting back to the basics.

This year, our spotlight focuses on the theme of GROWTH and how leading firms are adapting to meet the unique client needs in growth markets (both domestic and abroad). At the core of any growth strategy is developing a clear understanding of the unique client needs in each market. Equally important is the firms assessment of their culture, heritage, and how they want to define themselves in existing and new markets. While many firms state they cover the full spectrum of capabilities across the wealth management value chain, we have found firm heritage and culture has driven firms to dominate one end of the spectrum – which has a significant impact on operations structure, IT infrastructure, delivery channels, and brand. By assessing one’s strengths and limitations, firms can make strategic, targeted investments to adapt to the growth market needs.

Firms are increasingly recognizing that what has driven success in one market, does not necessarily translate into success in growth markets. While many factors should be taken into consideration, the key factor is aligning service delivery models to maximize strengths and aligning them to meet client needs. Differentiation and success can be achieved by leveraging the most suitable practice models, pricing models, and distribution channels to name a few. Additionally, investing in an effective IT and operational infrastructure are critical to enabling the appropriate service models. Read the entire spotlight on New Services Models for HNW Clients here.