The European Wealth Management Market: Strategies and Technology in 2012

by Alexander Camargo,  Isabella Fonseca, March 7, 2012
Industry Trends
EMEA

Abstract

Wealth management has become a priority for many financial services organizations in Europe as investment banking and other operating divisions become less profitable. Technology providers see opportunities and are increasing their activity by offering a vast array of solutions.

In a new report, The European Wealth Management Market: Strategies and Technology in 2012, Celent examines trends, major market developments, technology innovations, and available advisor solutions in the market.

The European wealth management market is in the midst of several changes. In the past four to five years, banks have focused on the reorganization of business models and on technology to address both the growing investor population and their ever-more complex advice needs. This trend has been exacerbated by the financial crisis, with customers demanding more active communication and risk management. In addition to these challenges, the European sovereign debt crisis and subsequent credit downgrades of several European banks have reignited investors’ fears regarding the safe-keeping of their assets.

“As a result of these challenges, research shows that consumers are putting less faith in their banks and advisors to manage their wealth,” says Alexander Camargo, Celent Analyst and coauthor of the report. “More than ever, clients trust themselves and their peers more than financial services professionals. Wealth managers must justify their product selections and persuade clients to keep their assets with their firms. Firms have responded to these demands by adding technology and strategically segmenting customers to create a more personalized experience.”

“Client segmentation and management methods, delivery channels, and investor product selection are all undergoing changes as wealth managers evaluate their service offerings,” says Isabella Fonseca, Research Director at Celent and coauthor of the report. “Technology vendors see opportunity in these challenges and are increasingly focusing on the European market. We have seen a flurry of activity in the vendor market and expect to see this continue in 2012.”

This report begins with a brief introduction to the drivers of wealth management projects and the evolution of client segmentation, client management, distribution channels, and technology among wealth managers. This is followed by a detailed market overview as well as a look at technology trends, market segmentation, and investor product selection changes. We also take a deeper look at technology demands among wealth managers and product enhancements made by vendors. Finally the report provides an overview of the emerging technology demands for mobility and social media among wealth managers and end investors.

Also included in the study is a vendor preview section, which highlights several solution providers in the wealth management market and outlines each solution’s offering in the wealth management market. The following 17 vendors are included: Avaloq AG, BI-SAM Technologies, Bravura Solutions, BSB, Distribution Technology, Finantix, Interactive Data Corporation, ObjectWay Financial Software, OpenFinance, Oracle Financial Services, Sage SA, SIX Telekurs, SunGard, TechRules, Temenos Group, Thomson Reuters, and Vermilion. The report concludes with a discussion of what European wealth management may look like in the rest of 2012.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

3

Introduction

5

 

Market Evolution of Services

5

 

Drivers

6

Market Overview

8

 

Wealth Management Trends

8

 

Technology Trends

11

 

Market Segmentation

12

Technology

16

 

Developments

17

 

The New Frontier: Mobility and Social Media

19

Vendor Landscape

23

Conclusions

27

Leveraging Celent’s Expertise

29

 

Support for Financial Institutions

29

 

Support for Vendors

29

Related Celent Research

30

Sign in to download reports and access personalized information