Wealth management has become increasingly important for banking groups: it is a fee-generating business that does not require the deployment of capital – something of great importance as more stringent capital rules continue to reshape bank activity across the world.
Yet wealth management is dealing with its own regulatory hurdles as well as competition from new players. These are both fintech providers with their inexpensive set-ups that aim to serve not only mass affluent clients but, increasingly, wealthier ones too; as well as less established but fast-growing names from the developing world. A sluggish global economy is not helping provide clients with the desired returns, while reputational risks remain serious concerns.
