Many regulatory changes impact long-held operating and revenue models, leading firms to re-evaluate elements of their value proposition including the target client segments they serve and the markets in which they choose to operate. This could drive some firms to move up-market in search of better returns or leave the industry entirely, resulting in possible industry consolidation and/or narrower service choices for some HNWIs.
"One alternative to counter the high costs of compliance, while driving value for clients, is for firms to analyze and segment portfolios and customer preferences and re-align offerings based on complexity and level of HNWI servicing needs," said Jean Lassignardie, Chief Sales and Marketing Officer, Capgemini Global Financial Services. "For instance, clients in some wealth bands and geographies may be well served by more standardized services, while face-to-face advice may be predominantly limited for clients with larger, more complex portfolios."
Regulatory Compliance is an Opportunity for Firm-Level Transformation
Many firms are making tactical investments to overcome regulatory challenges, while a more strategic and transformative approach could enable firms to derive greater value from regulatory-driven investments and differentiate against competitors. Key opportunity areas include Technology & Process (including client relationship management, reporting, process automation, and risk management); People & Culture (including wealth manager training and enhancement of legal and compliance expertise) and Client Communications (through establishing clear and transparent product and marketing materials as well as guidance in articulating regulatory requirements and impacts to clients).
"Firms that realign their operations to incorporate regulatory change on a strategic level, stand to gain the most both in efficiencies and improving their ability to meet or exceed client needs," says Lassignardie. "In particular, strategic technology-related investments offer opportunities to separate best in class players from others in the industry and have the potential to drive additional value for both firms and clients."
The World Wealth Report 2013
The World Wealth Report from Capgemini and RBC Wealth Management is the industry-leading benchmark for tracking high net worth individuals (HNWIs), their wealth, and the global and economic conditions that drive change in the Wealth Management industry. New to this year's 17th annual edition, we introduce one of the most in-depth primary research works available on global HNWI perspectives and behavior. Based on responses from over 4,400 High Net Worth Individuals across 21 countries, we explore HNWI confidence levels, asset allocation decisions, as well as their wealth management advice and service preferences.
Download the report at www.worldwealthreport.com.
With more than 125,000 people in 44 countries, Capgemini is one of the world's foremost providers of consulting, technology and outsourcing services. The Group reported 2012 global revenues of EUR 10.3 billion. Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business Experience, and draws on Rightshore®, its worldwide delivery model. Learn more about us at www.capgemini.com.
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