Report Summary:

In order to succeed in the wealth management space, firms must:

• Align client segments, products and delivery channels
• Develop meaningful and actionable segmentation schemes
• Align technology investments with client expectations
• React and respond to changing market situations and client expectations that have developed as a result of the recent economic crisis and precipitous market decline

The financial crisis has shaken up many of the aspects of wealth management for client segments (declines in wealth), products (failure to perform as projected) and delivery channels (advisors failing to add sufficient value to the relationship). This report discusses the major trends underway in wealth management in each of these the three dimensions.

In particular, the report highlights the following trends:

• The need for better understanding of client segments and how they feel about and respond to risk in products and service levels in delivery channels.
• Changing preferences for products that meet the objectives of different client segments.
• The changing value and nature of advice and the move towards self-service for many segments.
• The changing roles and dynamics within the advisor-based universe.

Significant trends in all three aspects of wealth management are changing the competitive balance and putting assets in play like never before. Financial service firms and technology providers must understand and adapt to these trends in order to succeed.

CONTENTS

Introduction…2
Evaluating WM Strategies…4
Where are we now?…6
Client Segmentation Trends…10
Product Segmentation Trends…15
Delivery Channel Trends…20
The Role of IT in WM…27
Conclusions…28