The Global Credit Crisis: Implications for North American Wealth Management

December 16, 2008
North America

Abstract

New York, NY, USA December 16, 2008

The Global Credit Crisis: Implications for North American Wealth Management

As a result of the credit crisis, we shall see tectonic shifts in the way that investors think and behave with regard to their wealth, the products that they invest in, and the providers and channels with whom they do business going forward.

The credit crisis that began in the United States has rippled across the globe, upsetting financial systems and economies in almost every region and market. Wealth management across North America, until now the least affected segment of the financial services industry, is starting to undergo serious contraction. Investors are becoming more selective about which financial institutions they work with and the specific investment instruments they select.

In the new report, The Global Credit Crisis: Implications for North American Wealth Management, Celent discusses the likely outcomes of the current crisis on client segments, product providers, and manufacturers, as well as the products themselves.

To summarize the impact of the credit crisis on North American wealth management; everything that was certain and taken for granted is now being called into question.

Key findings of the report include:

キ Large providers have been adversely impacted; investors have an increased preference for independent firms and firms with pristine reputations

キ The product outlook across most asset classes is poor; client segments are responding differently to different product classes.

Investor behavior is rapidly moving to extreme conservatism.

Retirement accounts will grow as a social issue as they shrink in value.

Technology will provide a strategic advantage to providers as they seek to emerge from this crisis.

"Contraction in the North American economy due to the credit crisis has left an indelible mark on the way wealth management is delivered across financial institutions," says Robert J. Ellis, senior vice president of Celent’s Wealth Management practice and co-author of the report. "The entire financial services sector has been mauled, causing portfolios and retirement plans to hemorrhage value while requiring investors to question such basic issues as capacity for risk and planning for their retirement."

This report attempts to provide a perspective on the complexities the North American wealth management industry is facing as a result of the crisis.

The report is 27 pages and contains four figures and seven tables. The report’s 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 December 16, 2008

The Global Credit Crisis: Implications for North American Wealth Management

As a result of the credit crisis, we shall see tectonic shifts in the way that investors think and behave with regard to their wealth, the products that they invest in, and the providers and channels with whom they do business going forward.

The credit crisis that began in the United States has rippled across the globe, upsetting financial systems and economies in almost every region and market. Wealth management across North America, until now the least affected segment of the financial services industry, is starting to undergo serious contraction. Investors are becoming more selective about which financial institutions they work with and the specific investment instruments they select.

In the new report, The Global Credit Crisis: Implications for North American Wealth Management, Celent discusses the likely outcomes of the current crisis on client segments, product providers, and manufacturers, as well as the products themselves.

To summarize the impact of the credit crisis on North American wealth management; everything that was certain and taken for granted is now being called into question.

Key findings of the report include:

キ Large providers have been adversely impacted; investors have an increased preference for independent firms and firms with pristine reputations

キ The product outlook across most asset classes is poor; client segments are responding differently to different product classes.

Investor behavior is rapidly moving to extreme conservatism.

Retirement accounts will grow as a social issue as they shrink in value.

Technology will provide a strategic advantage to providers as they seek to emerge from this crisis.

"Contraction in the North American economy due to the credit crisis has left an indelible mark on the way wealth management is delivered across financial institutions," says Robert J. Ellis, senior vice president of Celent’s Wealth Management practice and co-author of the report. "The entire financial services sector has been mauled, causing portfolios and retirement plans to hemorrhage value while requiring investors to question such basic issues as capacity for risk and planning for their retirement."

This report attempts to provide a perspective on the complexities the North American wealth management industry is facing as a result of the crisis.

The report is 27 pages and contains four figures and seven tables. The report’s 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.  

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