Wealth managers have traditionally focused on the asset side of their client's financial position, leaving lending to the retail banks. However, wealth management is becoming increasing competitive, leading some innovative wealth managers to build a proposition around liability management. The result is increased revenues, share of wallet and customer base growth.
European wealth managers surveyed by Datamonitor do not see strong potential in lending business, despite success in US and Australia. Few of them focus resources on mortgages, margin lending and similar products in the next two years.
Only a handful of firms are capitalizing on opportunities in lending, among them large financial groups such as Barclays, Credit Suisse, HSBC, Merrill Lynch and UBS. They see lending as key part of a holistic wealth management approach that aims to cover all aspects of client needs.
Despite not being part of the wealth management agenda in many markets, lending to the wealthy has strong potential. Industry experts believe that lending as part of a holistic wealth management approach is the way forward and can help to increase both customer base and share of wallet.
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