The Global Credit Crisis: Implications for European Wealth Management

by Isabella Fonseca, January 9, 2009
Industry Trends
EMEA

Abstract

New York, NY, USA January 9, 2009

The Global Credit Crisis: Implications for European Wealth Management

Uncertainty about financial stability, domestic demand for products and services, inflation, and other financial factors are putting the world economy at risk and are likely to have a significant impact on wealth management.

The European banking and credit systems have been severely affected by the financial crisis, and more risks lie ahead. The North American subprime crisis has had significant ramifications across financial products, markets, and regions. European governments are trying to counteract the financial turmoil as much as possible, but the slowdown in economic activity has made this task fairly difficult.

In a new report, The Global Credit Crisis: Implications for European Wealth Management, Celent provides a perspective on the complexities of what is happening in the European wealth management industry as a result of the current credit crisis.

Key findings of this report include:

  • For European investors, this crisis has meant a shift from risky assets toward wealth management service providers that instill trust in their clients and can provide a more personal advisory experience.
  • In Europe, governments are working hard to counteract the effects of the crisis. Nonetheless, the European economy is experiencing a loss of liquidity and overall pessimism with regards to financial markets.
  • The various European economies have witnessed different effects of the crisis, generally depending on the overall maturity of their financial markets. In general, the more mature Western European economies have seen more negative effects from the crisis.
  • In terms of product popularity, there is a dramatic shift towards low-risk products and away from complex products.
  • As the market realigns, providers will focus on offering value-added services, increasing their assets under management, and making effective use of technology to gain and retain customers.

"The current market developments on a global basis have created tremendous financial instability across markets. The world has changed drastically and a high level of uncertainty has spread to all customer segment levels, reducing confidence in investing across financial products," says Isabella Fonseca, Celent senior analyst and author of the report.

The report is 52 pages long and contains 24 figures and 4 tables. A table of contents is available online.

of Celent's Wealth Management research service can download the report electronically by clicking on the icon to the left. Non-members should contact info@celent.com for more information.  

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

New York, NY, USA January 9, 2009

The Global Credit Crisis: Implications for European Wealth Management

 

Executive Summary 3
Introduction 5
Credit Crisis in Europe 9
Shifts in European Investment Behavior 12
Credit Crisis Impact on Regional European Wealth Management Market 16
Credit Crisis and Impact on Wealth Management Products 37
Credit Crisis and Impact on Wealth Management Providers 44
Conclusions 48

 

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