Bringing you live news and features since 2006 

Coins

Banks expect wealth management practices to grow 25 per cent in next five years

RELATED TOPICS​

Many banks are repositioning for growth and are looking toward new revenue opportunities, particularly from fee-based businesses like wealth management, according to a report from Fidelity Institutional.

The inaugural Fidelity Bank Wealth Management Study, which canvassed the views of more than 140 senior bank executives, reveals that this shift comes after several years in which banks were focused primarily on compliance and cost management.
 
Over half (55 per cent) of the bank executives expected the revenue contribution from their wealth management practices to grow 25 per cent or more in the next five years.
 
Although the future of wealth management appears positive for banks overall in this study, given the expected growth rate, a group of Pacesetters stood out from the pack with wealth management typically estimated to represent 35 per cent of total bank revenue in the next five years, versus 20 per cent for other banks.
 
“While some may assume that Pacesetters were the largest banks or clustered in certain regions, our study found that what really set these firms apart was how they run their wealth management practices,” says Mike Norton, head of the banking segment for Fidelity Institutional. “Pacesetters recognise that wealth management not only offers significant revenue-generating potential for banks, it also presents an important client engagement and retention opportunity.”

Latest News

European ETFs raised USD47.8 billion in Q1, a 15 per cent increase compared to the same period in 2023, according..
LSEG Lipper’s March report finds that globally equity ETFs (+EUR113.2 billion) enjoyed the highest estimated net inflows for the month,..
Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..

Related Articles

Kristen Mierzwa, FTSE Russell
Index Investments Group (IIG), a division within index provider FTSE Russell, has extended its range of indices through two new...
ETFs
US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by