New York, NY, USA
January 22, 2007Wealth Management
in North America: Clients, Products, and Providers
Report Published by Celent
The population of affluent and
wealthy individuals in North America will grow to 37.7 million by 2010, a
24% increase from 30.4 million in 2006. To win clients and assets in this
growing market, financial institutions should align their clients,
products, and distribution channels.
In the report, Wealth Management in North
America: Clients, Products, and Providers, Celent takes a snapshot of
the wealth management industry at the start of 2007. According to the
report, there are three different major client segments to be considered
by wealth management providers:
- Mass affluent, with net worth of $250,000 to $2
million, a population of 33.9 million and total assets of $7.2
trillion in 2010.
- High net worth, with assets from $2 million to
$10 million, a population of 3.4 million and total assets of $7.9
trillion in 2010.
- Ultra-high net worth, with assets of more than
$10 million, a population of 377,000 and total assets of $4.2 trillion
in 2010.
Today's wealth management market has become more
complicated as the numbers of the wealthy have grown. Different
institutions cater to different segments of the market, though there is
frequent overlap among some firms. The overlap increased the range of
customer segments served, but with the negative outcome of a dilution of
that organization's image.
"Many firms struggle between trying to be best
of breed and being all things to all people, and wind up being
neither," says Robert
J. Ellis, senior analyst in Celent's Securities &
Investments practice and author of the report. "Cognitive dissonance
occurs on the part of clients when they are offered the wrong products
through the wrong delivery channels."
The report analyzes client segments in detail, then
looks at the wealth management products and the distribution channels used
by the differing types of financial services firms to serve the different
client segments. It also looks at the requisite classes of wealth
management technology and identifies and analyzes future trends in
clients, products, providers, and technology within the wealth management
arena.
This report is instructive to any organization that
competes in the wealth management arena, including brokerage firms, asset
management companies, and financial planners, as well as insurance firms
and banks.
The report is 52 pages long and contains eight
tables and 20 figures. A table
of contents is available online.
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