Caphemini – Wealth Management Report, 2024

The global economy is recovering from challenges in 2022, with central banks signaling an end to rate hikes and the possibility of rate cuts in late 2024 or early 2025. High-net-worth individual (HNWI) wealth and population are on the rise globally, with North America leading the recovery. HNWIs are adjusting their portfolios to meet growth goals, increasing allocations to alternative assets. Wealth management firms are facing profit uncertainty due to geopolitical conflicts and market volatility, leading them to focus on attracting ultra-wealthy investors and leveraging behavioral finance techniques. Firms are integrating behavioral finance concepts with artificial intelligence to enhance client experiences. As UHNWIs become more prominent, wealth management firms must offer value-added services and personalized experiences to attract and retain these clients. Collaboration with family offices can provide tailored services and unlock new revenue streams. Wealth management firms should aim to become one-stop shops offering a full suite of products and services, integrating internal teams and third-party partners to deliver services through preferred channels.