World Report Series 2023
Wealth Management

UNLOCK GROWTH IN
WEALTH MANAGEMENTEMPOWERING RELATIONSHIP MANAGERS AND SERVING THE AFFLUENT2World Wealth Report 2023

CONTENTS

Foreword						3Executive Steering Committee				4Executive summary					5HNWI wealth and population decline highest in a decade6

Prioritize investment in digital tools and relationshipmanager productivity					14Unlock new growth opportunities throughthe affluent segment					

24In conclusion						

32Partner with Capgemini					33Methodology						34World Wealth Report 2023

3

FOREWORDAs we compiled the 27th edition of the World Wealth Report, macroeconomics was taking a global toll.
For example, a prestigious 166-year-old Swiss bank agreed to be rescued by a long-time rival. A mid-tier
US bank filed for bankruptcy, triggering worldwide financial services repercussions. Geopolitical crises
persisted into a second year, inflation remained high while central banks waffled about interest rate
reductions, and corporate earnings stayed flat.
The wealth management industry landed squarely in the thick of these events. International skittishness
led to significant investment outflows and, as a result, cash deposits rose, lending was down, andpreviously resilient consumer spending became unpredictable at best.
Wealth management firm revenues are stressed and operational costs remain high, denting profits. As
a result, firms are shifting gears to fortify value, reinforce productivity, and unlock new value streams
to catalyze long-term sustainable growth.
Our World Wealth Report 2023 – Unlock growth in wealth management marks an inflection point during
which trendsetters will cautiously and innovatively brave economic headwinds while soldiering throughtheir digital transformation journeys.
Many leading wealth management firms are assessing capabilities, augmenting their workforce, andexploring potential new client segments – working hard to overcome barriers posed by inadequate
digital maturity across the value chain. Relationship managers (or financial advisors) are pivotal tosuperior client engagement and business model expansion. However, non-core manual tasks often
thwart relationship manager productivity by limiting time to nurture client relationships. Enabling andempowering relationship managers is vital to boosting productivity and unlocking opportunities suchas those within the underserved affluent wealth segment.
The months ahead will require a shift in mindset and business models. And although some changes
may seem daunting, wealth management firms can prepare now by creating a well-defined technology
roadmap, equipping themselves to leverage ecosystem integration and customer insights, and improving
risk-assessment processes.
Is your organization poised to lead the inevitable change?

Anirban Bose
Financial Services Strategic Business Unit CEO& Group Executive Board Member, Capgemini

4World Wealth Report 2023

EXECUTIVE STEERING COMMITTEE

Wealth Management Firms

Annabel Spring

Greg Gatesman

Sabine Caudron

CEO, Global Private Banking & Wealth
HSBC

Head of International Wealth Management
Morgan Stanley

Head of Private Banking
Degroof Petercam

Sanjoy Sen

Melanie Aimer

MD, Group Head of Consumer BankDBS

Head of International Banking &Global Head of Client Experience
Barclays Private Bank

WealthTechs

Christine Ciriani

Jacqui Henderson

Charles Sayac

CEO EMEA
InvestCloud

Founder & CEO
Advice Intelligence

Head of Sales, Wealth & Distribution
Amundi Technology

Technology and Business Partners

Michelle Feinstein
GM & VP, Wealth & Asset management
Salesforce

Stuart Grant

Stephane Gomis

Head of Capital Markets
SAP

Deputy CEO
AZQORE SA

World Wealth Report 2023

5

EXECUTIVE SUMMARY
Throughout 2022, the global economy
experienced a steeper-than-expected slowdown,a cost-of-living crisis, rising interest rates, andescalating geopolitical concerns: as a result,economic growth slowed to 3.2%, as comparedwith 6% during 2021.1 During 2023, global
economic growth will remain skittish given
persistent macroeconomic uncertainties.

HNWI WEALTH AND POPULATIONDECLINE HIGHEST IN A DECADE
Difficult macroeconomic conditions led tobearish global markets and significant declines
in indices across regions. Following suit, globally,
high-net-worth individual (HNWI) wealth andpopulation totals dropped by 3.6% and 3.3%,
respectively, as compared to the prior year. Whilestill the wealth leader, North America registered2022’s steepest declines, with total HNWI wealthfalling by 7.4% and population by 6.9%.
Concern over continuing market uncertainties
led HNWIs to shift investment emphasis
from growth to value and to prioritize wealthpreservation: indeed, 67% of HNWIs prioritizedwealth preser vation as a critical objective,
leading to shifts in portfolio asset allocations.
Overall, the share of equities in portfolio mixes
declined year over year by nearly six percentage
points – down to 23%. At the same time, average
percentage of cash and cash equivalent s
increased by almost ten percentage points to34%, as of January 2023.
Despite global economic unpredictability,
HNWIs and wealth management (WM) firms
remain interested in alternative investments andnotably in ESG products, too. Surprisingly, ESG
data analysis and traceability are not among the
top priorities of wealth management firms.

PRIORITIZE INVESTMENT
IN DIGITAL TOOLS AND
RELATIONSHIP MANAGER
PRODUCTIVITY
To boost revenues and solve for profitability
pressures, investment is required. The wealthmanagement value chain is rife with cumbersomeand error-prone manual processes. Digitalinefficiency negatively impacts the HNWI client
experience and relationship: only one in two HNWIs
is satisfied with the touch points their WM firm
offers. Relationship managers (RMs) spend twothirds of their time on non-core activities (activities
that do not generate revenue), leaving insufficient
time for pre-sales and client interactions.

RM enablement and associated digital
capabilities are critical. Beyond empowering RMs
with resources such as the latest client-facing
tools, access to experts, and skill building, wealthmanagement firms can offer RMs an integrated
interface to access disparate functionalities andorchestrate superior client experiences. Also, aone-stop-shop digital workstation can catalyze
a firm’s productivity and client engagement
by integrating processes, systems, data, andadvisory tools within a single interface.

UNLOCK NEW GROWTHOPPORTUNITIES IN THE
AFFLUENT SEGMENT
Affluent individuals, those with investableassets of USD 250k–1M, hold nearly US$27 trillion
in wealth and represent a large population base. If
captured in their early life and wealth stages, theaffluent can grow within the wealth management
ecosystem to become future HNWI clients.
However, only 18% of the affluents wesurveyed said they are satisfied with their current
wealth management service provider and hence
are ripe for taking if offered a better experience.
At the same time, WM firms hesitate to target
and serve the segment because of profitability
concerns. Embracing new business models may
offer providers with a solution:• Leverage existing wealth management setup
but accelerate digital transformation fromfront to back to unlock RM productivity,
develop AI-driven digital tools, and orchestrateomnichannel experiences; or• D evelop a wealt h - as - a - s er v ice ( Waa S )proposition to deliver wealth services toaffluents using third-party channels, including
retail banks and independent advisors; or• Build a dedicated platform for wealth services
and other value-added offerings to reach theaffluent segment, augmented with self-service
tools to improve customer engagement.
Wealth management firms will likely facesluggish economic growth, low return potentialfrom many assets, and an evolving competitive
landscape for the foreseeable future. Careful
cost management, new value pools, investments
in new technologies and relationship manager
productivity, and a recalibration of the customer
mix through new segments like the affluent will
all be required to enable and sustain long-term
growth.

World Wealth Report 2023

6

HNWI wealth and population decline
highest in a decade

3.6%
3.3%
and

respectively in
2022• In Europe, the CAC 40 (France) ended the yearwith a 9.5% decline.3 The UK domestic-focused
FTSE 250 sank 19.5% by year end – its worst
performance since 2008.4• The macroeconomic impact cascaded as the
MSCI All-Country World index (representing
the performance of large- and mid-cap stocks
across 23 developed and 24 emerging markets)
dropped nearly 20% in 2022 – losing almost
USD 18 trillion.5
The result? Overall, global HNWI wealthdeclined by 3.6% in 2022, the steepest drop
observed within the last decade (2013 –2022).
With high exposure to diversified market
instruments, and especially equities, HNWIs across
key markets reported a downturn in wealth.
In line with the dip in HNWI wealth, notsurprisingly the HNWI population also fell, by
3.3% in 2022, to 21.7 million, ending a decade ofcontinuous growth. A modest year-on- year increase
in HNWI populations in some emerging markets andin France (0.4%) failed to offset the global impact ofsignificant declines in all major economies.

Figure 1. HNWI ﬁnancial growth declined in Europe, APAC, and North America
CAGR 2015–2022: 5.1%

Annual growth 2021–2022: -3.6%
86.0
79.6

HNWI ﬁnancial wealth in USD trillions

Global HNWI
wealth andpopulation
declined byUnprecedented government stimulus, lowinterest rate environments, increased liquidity,
and stock market rallies accelerated high net
worth individual (HNWI) wealth and population
growth in 2021, and as a result, HNWIs entered2022 in a position of strength, only to be
confronted by geopolitical crises, a steep market
decline, and unprecedented inflation, imposing a
bleak ending to 2022.
Central banks across key markets increased
interest rates to soften the blow, sending ripple
effects throughout the global economy. Higher
rates made financing costs expensive for firms,
especially for those that were highly leveraged,
resulting in depressed earnings, with a major
impact on technology stocks.
Conditions in 2022 fueled a prolonged drop
in investments, with several global stock indicesflailing through a bear market:• In the United States, the S&P 500 index closed
the year down almost 20%, and the Nasdaq
Composite tumbled nearly 33% – their biggest
drops since 2008.2

70.2
58.7
1.4
7.4
2.3
13.6

17.4

74.0
68.1

63.5

1.7

1.5

8.7

8.0
2.4

2.5

8.4
2.6

15.9

15.4

14.7

18.8

1.6

1.7
8.8
2.9

1.7
8.8

1.8
9.0
3.4

3.2
18.8
17.5

20.6

83.0
1.9
9.2
3.4
18.2

16.7
25.3

21.6

% change 2021–2022

22.2

24.0

24.7

Africa1.6%

Latin America

2.1%

Middle East

1.5%

Europe-3.2%

Asia-Paciﬁc-2.7%

North America -7.4%

16.6

18.0

19.8

19.6

21.7

24.3

27.7

2015

2016

2017

2018

2019

2020

2021

Source: Capgemini Research Institute for Financial Services Analysis, 2023.
Note: Chart numbers and quoted percentages may not total 100% due to rounding.

25.6

2022

World Wealth Report 2023

North America holds onto top
wealth spot despite equity market
plungeNorth American HNWI wealth fell sharply
as tech stocks plunged in 2022. Share prices of
Amazon, Airbnb, Netflix, PayPal, Zoom, Meta,
Tesla, and US electric vehicle manufacturer Rivian
had each dipped 50% to 83% as of December
2022.6 Estimates put collective BigTech market
value losses at USD 4 trillion.7
The Canadian S&P/TSX index also posted
a negative return of 8.5% by year-end 2022,
dragged down by the healthcare, technology, andreal estate sectors. However, the Toronto Stock
Exchange (TSX) outperformed its US peers due tostrong performances within more cyclical sectors
such as energy, consumer staples, and materials.
Moreover, oil prices were a significant tailwind for
Canadian stock performance.8
However, as compared with all other regions,North America registered 2022’s steepest declines
in both HNWI wealth, tumbling by 7.4%, and
HNWI population, which slid by 6.9%. By January2023, North American HNWIs had shifted awaysignificantly from equity investments, with theirasset allocations for stocks falling to nearly 23%,compared with 32% in the previous year.

7

Many HNWIs and internationalbanking clients are concerned about
economic, social and political volatility
in their countries and want to accessglobal markets in order to achieve
jurisdictional diversification. One of
their main objectives is to preserve
their wealth for future generations. Our
relationship managers and investment
advisors act as trusted partners to
our client base and assist them inmeeting their banking and investment
ambitions.”

Melanie Aimer
Head of International Banking & Global Head ofClient Experience, Barclays Private Bank

Figure 2. HNWI population in Africa, Latin America, and the Middle East was
resilient as other regions contracted
Annual growth 2021–2022: -3.3%

CAGR 2015–2022: 5.1%

22.5

HNWI population in millions

19.6

15.4
0.2
0.5
0.6

4.2

5.1

18.1

18.0

0.2

16.5

0.2

0.2

0.2
0.6
0.6

0.6
0.7

0.6
0.7

0.6
0.8

4.8

4.5

5.5

4.8

20.8

0.2

0.2

0.6
0.9

0.6
0.8

5.7
5.4

6.1

21.7
0.2
0.6
0.9

5.6

5.2
7.2

6.2

% change 2021–2022

6.5

4.8

5.2

5.7

5.7

6.3

2015

2016

2017

2018

2019

6.9

7.1

7.0

7.9

7.4

2020

2021

2022

Source: Capgemini Research Institute for Financial Services Analysis, 2023.
Note: Chart numbers and quoted percentages may not total 100% due to rounding.

Africa4.3%

Latin America

4.7%

Middle East

2.8%

Europe-2.0%

Asia-Paciﬁc-2.0%

North America -6.9%

8World Wealth Report 2023

HNWI gap narrows between
Asia-Pacific and North America
regions
North America surpassed Asia-Pacific in HNWI
wealth and population in 2020 and widened its
lead in 2021. However, during 2022, the 4.9%
delta between North American and APAC HNWI
population growth, and the 4.7% differencein financial wealth, narrowed North American
dominance.
Major APAC stock markets reported a doubledigit decline in 2022:• The MSCI Asia Pacific Index, which tracks Asianf ir ms acros s developed and emerging
economies, declined by nearly 19%.9 The falloff was driven mainly by China's Shanghai
Composite and SZSE Composite indices, whichfell by almost 15% and 22%, respectively.10• In Hong Kong, the Hang Seng Index declined
by 15%. The sharp tumble in China’s property
market, which contributes almost 25% of thecountry’s Gross Domestic Product (GDP),
co up le d w i t h re g u l a to r y c r a c kd ow n s ,COVID-19 lockdowns, and weak consumer
confidence led to slow economic growth.11• Other major markets, including Taiwan (TWII),
South Korea (KOSPI), and Vietnam (VN Index),
also reported declines of nearly 22%, 24%, and33%, respectively.12
Japan’s HNWI wealth and population declined
by 3.5% and 2.8%, respectively, driven by aweakened Yen, which plunged in 2022 to a 32-year
low against the US dollar and negatively impacted
Japanese earnings. As a result, the Tokyo Stock

Price Index (TOPIX) remained subdued, with adecline of almost 5.0% as of December 2022.13 In
contrast, Australia proved to be resilient. Despite
the Australian Securities Exchange’s 4.5% ASX 200
decline, the Australian market outperformed the
S&P 500 and the MSCI Asia Pacific index.14
India and Indonesia were APAC-region brightspots during 2022. Indian indices were up year
over year – the BSE Sensex by 4.4% and the Nifty50
by 4.3%. Indonesia’s Jakarta Stock Exchange
Composite reported a 4.0% increase in 2022.15
Additionally, both markets reported modest
HNWI wealth and population growth.

Macroeconomics take a toll on
EuropeEuropean HNWI wealth and population totals
both experienced 2022 declines, driven primarily
by high inflation, rising interest rates, and waning
consumer confidence: overall HNWI wealthdropped by 3.2%, and the HNWI population
declined by 2.0%. The STOXX Europe 600 index,
representing large-, mid-, and small-capitalizationcompanies from 17 EU countries, skidded morethan 12% from January to December 2022.
Eurozone business activity endured 2022 stress,
with a manufacturing Purchasing Managers’ Index(PMI) reaching a year-end 49.3 points to mark aseven-month consecutive contraction.16 Driven by ahousing nosedive, Western European also reported
wealth declines – France (0.5%), the United Kingdom(1.1%), Germany (2.2%), Italy (2.7%), and Spain (4.5%).
The Nordics suffered the steepest weakening –Sweden (7.1%), Denmark (7.5%), and Finland (8.3%).

World Wealth Report 2023

9

Africa, Latin America, andthe Middle East demonstrate
resilience

HNWIs lean into value overgrowth because of market
uncertainties

In contrast to declines in other regions, HNWI
wealth grew in the Middle East (1.5%), Africa(1.6%), and Latin America (2.1%), with HNWI
populations following suit – up 2.8% in the Middle
East, 4.3% in Africa, and 4.7% in Latin America.
Strong earnings from the oil and gas sector drove
Middle East growth, and Latin America reported
a 3.5% GDP expansion in 2022.17

Low interest rates since 2018 have benefited
growth stocks over value stocks through cheapborrowing and modest inflation. However, thetrend reversed in 2022 as central banks across all
major economies initiated aggressive interest rate
hikes:• The S&P 500 Growth index, a key indicator of
growth stock performance, fell by 30% in
2022.18• Value stocks, characterized by healthy priceto-book values and sales volume, were also
down but fared far better: the S&P 500 Valueindex fell just 7.4% in 2022.19
From Spain, Santander’s Francisco Javier
García Gómez, Director Adjunto de Banca Privada,said, “The most important factor inhibiting wealthgrowth in real terms is inflation. However, wealthis likely to grow nominally. But given inflation
averages 5% to 6%, it is not likely to happen inreal terms, only in nominal terms. At the end of
the day, private banking's main objective is topreserve client wealth and then grow it, always inreal terms, net of inflation.”

Population retracted most within
the ultra-HNWI band
The ultra-HNWI population traditionallyflourishes during growth years but, in keepingwith 2022 downward trends, it fell by 4.6% – astark contrast to 2021’s 9.6% growth. The mid-tiermillionaire band declined by 3.8% in both wealthand population. The millionaires next door
population fell 3.3%, while their wealth fell 3.4%.
Ultra-HNWIs in North America experienced the
deepest retractions: population was down 7.8%,
and wealth slipped by 8.2%.
Although the mid-tier millionaires wealthband shrank the most in wealth on a percentage
basis, ultra-HNWIs lost the most financial wealthin terms of absolute value in 2022 (Figure 3). Thisdata correlates with across-the-board 2022 market
losses in equities, fixed income, and alternative
assets. We expect subdued growth in 2023 asmarket uncertainty persists.

Figure 3. How wealth bands contracted worldwide in 2022

UltraHNWI
US$30m+Mid-Tier millionaires
US$5m–US$30m

Millionaires Next Door
US$1m–US$5m

Number ofindividuals(as of Dec 2022)

Share of
HNWI wealth

HNWI
population
growth2021–2022

HNWI wealthgrowth2021–2022

210k(1.0% of total)

34.0%

-4.6%

-3.7%

1,977k
(9.1% of total)

22.7%

-3.8%

-3.8%

19,524k(89.9% of
total)

43.3%

-3.3%

-3.4%

Source: Capgemini Research Institute for Financial Services Analysis, 2023.

World Wealth Report 2023

10

Our global survey of more than 3,000 HNWIs
across 23 markets revealed that, as of January2023, 67% prioritized wealth preservation, which
led to shifts in portfolio asset allocation mixes:• Overall, the share of equities in portfolio mixes
declined year over year by nearly six percentage
points, to 23%. What’s more, the growth focus,
through tech stocks, transitioned to value
stocks.
• By January 2023, fixed-income allocations had
declined nearly three percentage points to
15% compared with 18% in January 2022.
Fixed-income instruments (mainly bonds) areconsidered a shock-absorbing haven in timesof volatility. During the 2002 and 2008 market
crises, fixed income commanded the largest
share of the overall portfolio mix. However,2022 defied the odds as estimates pegged USbond performance as the worst in 250 years.
The Total Bond Index, which track s US
investment-grade bonds, fell by more than
13% in 2022; this index, launched in 1972, had
never before declined to such a degree.20• Cash and cash equivalents, which was stable ataround 25% of portfolios for the last five years(2018-2022), significantly increased – by almost
ten percentage points – to 34% as of January
2023. Rising interest rates and high inflation
have made returns on cash and cash equivalents
more attractive, and they are less risky.

• Finally, the share of alternative investments inthe portfolio mix remained static in 2022,
although category allocations shifted.
James Dunlop, GM Private Bank at ANZ,
Australia, agrees when he says that “clients are
more conservative during uncertain times, withpriorities focused on preserving wealth throughdiversified investment strategies and an eye tothe future.”
Prevailing uncertainty and market volatility
drove wealth management firms to prioritize
portfolio mix resilience for high-net-worth clients
to fortify long-term value over quick returns(Figure 4).

Alternative asset allocations
remained low despite rising
HNWI interest
While many HNWIs are enthusiastic, wealthmanagement firms are cautiously proceedingwhen beefing up their portfolios’ ratio ofalternative assets, including digital assets: onlya third of the 95 wealth management executives
surveyed in 14 markets said they plan to add morealternative investment products to portfolios in
the coming year.

Figure 4. HNWIs move asset allocations towards wealth preservation

10%

13%

13%

14%

14%

31%

26%

30%

30%

29%

17%

16%

15%

15%

15%

29%

16%

18%

17%

18%

18%

14%

21%

27%

28%

25%

24%

24%

Jan'06

Jan'08Jan'18Jan'19Jan'20Jan'21

Jan'22

20%
31%
15%

30%

7%

9%

10%

25%

13%
-6

18%
24%

23%
15%

-3

15%

21%
25%
Jan'02

Cash & cash
equivalents
20xx

Fixed
incomeRepresents a crisis years

Real estate#

Equities

10

34%

Jan'23
Alternative
investments

Change in investments (percentage points)

Source: Capgemini Research Institute for Financial Services Analysis, 2023.
Note: Alternative investments include commodities, private equity, FX, hedge funds, structured products, and digitalassets. Chart numbers and quoted percentages may not total 100% due to rounding.

World Wealth Report 2023

Alternative investments – other than digitalassets – yielded restrained enthusiasm from riskaverse investors, we learned through our January2023 HNWI survey. Shares of foreign exchange(FX), commodities, and hedge fund assets withinalternative investment allocations fell four, two,and three percentage points in 2022.
Commodities. In the first half of 2022,
commodities were top performers in light of supply
risks sparked by eastern European geopolitical
upheaval. By the second half, however, the slowing
global economy, eroding household consumption,
and weak business confidence led to a back slide incommodities value.
Hedge funds. In 2022, hedge funds posted
their worst performance since 2018: overall,they declined 4.3 percentage points. Equity
hedge funds suffered the most significant 2022
losses among subcategories – more than 10%
year over year.21 Even so, HNWIs continue todemonstrate sustained interest in private equity,
more so than for all other alternative investment
asset categories throughout 2022. Despite
underwhelming performance, 42% of RMs saidclients remain interested in hedge funds.
Private equity. Nearly half (46%) of the over 800
RMs we surveyed across nine markets said private
equity (PE) offerings are generating increased
interest among clients. In addition, 2022’s private
market repricing and valuation corrections to
mitigate elevated financing risk may boost HNWIs’
appetite for private equity investments in 2023.
We expect the PE to experience another roundof market corrections in next 12 months boosting
their attractiveness among investors.
Digital assets. Throughout our World WealthReport 2023 interviews, wealth management
executives said they are not ready to embrace
digital assets as essential portfolio components.
WM firms are handling digital assets cautiously,
and most especially so with cryptocurrencies,
due to ongoing uncertainty, weak regulatory
oversight, and poor transparency. However,they acknowledged the growing interest among
HNWIs and as a result are exploring safer digital
investments, such as tokenized assets.

11

ESG risk measurement is critical
to WM firm growth and HNWI
engagement
Despite global economic unpredictability,
HNWIs and WM firms remain interested in ESG
products. Of our HNWI survey respondents, 40%
reported that their returns from ESG-linked assets
were similar to those from non-ESG-linked assets.
• Only 23% said ESG-related returns were higher
than non-ESG-linked assets, while 27% said
returns were lower than non-ESG-linked assets.
• Nearly 11% were unclear on the quantum of
returns from their investments in ESG-linked
assets.
During challenging economic times, HNWI
priorities sometimes shift. For example, our survey
identified a 2022 move to wealth preservation
versus ESG impact: 67% of respondents said
wealth preservation was primary and 63% pointed
to wealth growth as their leading goal. Only 41%
of surveyed HNWIs globally rated investing for
ESG impact as a top priority, and European HNWIs
were less keen, with only 31% rating ESG impact
investment as a priority.
Nonetheless, HNWIs say they remain committed
to increasing their investment in ESG-linked assets– albeit more slowly – indicating a general belief
in the implicit value of sustainable investing. Not
surprisingly, 78% of wealth management executives
told us their firm holds ESG-linked assets, while
another 9% said they plan to offer more ESG
products. Allocating capital for long-term growthwith effective risks management against climate
and sustainability threats can help in building aresilient portfolio and achieving better long-term,risk-adjusted returns.
With an eye on fortifying value, regulators,
financial institutions, investors, and stakeholders
worldwide seek performance measurements toensure the credibility of environmental, social, andgovernance (ESG)-linked assets. Yet navigating risk
and opportunity requires targeted, measurable, andtrackable action plans.
Regarding ESG-linked investments, 63% ofparticipants in our 2023 HNWI survey said they had
requested reliable and traceable ESG scores for theirassets. In addition to scores that align a company
with ESG best practices and positive environmental
and social impact, investment data that describes
individual E, S, and G parameters is essential for
relationship managers (RMs) to advise HNWIs
from a position of knowledge. Of the relationshipmanagers we surveyed, 40% said they needed
more data to understand ESG impact, and nearly
one in two said they need more ESG information to
engage effectively with clients.

41%

of surveyed HNWIs
globally rated
investing for ESG
impact as a toppriority40%of the relationshipmanagers surveyed
said they require
more data tounderstand ESG
impactWorld Wealth Report 2023

12

However, wealth management firms still lag
in improving ESG data collection, integration,
analysis, reporting, and granularity in ESG asset
traceability (Figure 5). A Q4 2022 Bloomberg
Intelligence report said that asset s undermanagement (AUM) with an ESG mandate may
reach USD 50 trillion by 2025, from USD 35 trillion
in 2020.22
Wealth management firms must keep pacewith due diligence requirements to handle highcapital inflow that necessitates credible data
about ESG parameters. The inability to collect,analyze, and report such information canspark overvaluations and elevate financial andgreenwashing risks.
Systems and frameworks to produce, distribute,and consume ESG data are immature. Moreover,the ESG data value chain is opaque and lacks
granularity and standardization. As a result, there
is little visibility into how data is collected, where
it comes from, and when it is reported (datalag), and how ESG KPIs and scores are derived.
Essential questions are often left unanswered.
Until global ESG data standards are formallyin place, reporting by firms will remain largely
reactive rather than proactive. As a matter ofcourse, firms can release ESG funds’ performance
information and portfolio mix changes.
Therefore, a leap to the next frontier isimminent for wealth management firms. First,
they must build process muscles to heavy-lift a
centralized ESG data hub as a foundation for datacollection, and then leverage tools to generateactionable insights from that data.

Wealth management is a business of trust,and we believe firms must collect and report ESG
data actively. André Bantli, MD, Head Investments,
Distribution & Client Management, Bank Vontobel
AG from Switzerland, adds that, “Today ESG is an
integral part of any WM investment advice andportfolio construction. However, the investment
industry has to further develop investment solutions
across all asset class to become mainstream and todeliver on the expected returns.”

ESG requirements are evident
and important. Momentum to minimize
greenwashing and monitor and reporton impact is building as ESG score
methodology evolves. Regulations arechanging to create a stable climate
so wealth management firms canconfidently invest in ESG capabilities.”

Charles Sayac
Head of Sales, Wealth & Distribution,
Amundi Technology

Figure 5. How WM executives are supporting ESG investments
69%
61%

60%

57%

52%

31%

Launching
ESG-related
products andoﬀerings

ESG factors
embeddedacross theinvestment
portfolio

Educating
employees
on ESG

Thought
leadershipon ESG

Lagging in focus

Source: Capgemini Research Institute for Financial Services Analysis, 2023.

Collecting
andanalyzing
ESG data

Making
ESG-linked
assetstraceable

World Wealth Report 2023

13

Capgemini installed ESG Data Hub to support
sustainability analytics
Business challenge
The client, an investment manager with
USD ~1.3 trillion in AUM, had the directive to
integrate ESG into their investment processes.
The ESG reporting included, among othermetrics, the global compact score (GC score)of their portfolios. However, the firm’s data
was largely uncertified, non-standardized,
and scattered in several siloed systems.

Business solution
Capgemini embarked on an iterative
approach to start with a proof of concept andexpand into an ESG data exchange as part of
the IMS platform for the investment manager.
Capgemini used ready-to-deploy ESG in wealthmanagement use cases on a foundation of
ESG data hub with third-party data sources.
It employed an expandable ESG data modelwith design patterns to integrate into theinvestment manager’s variety of asset classes.

The single unified ESG data hub accelerated
deliver y of E SG exposure analytics andportfolio view using ESG and GC scores. Also,
Capgemini initiated a journey to iteratively
execute a roadmap and implementation
to build the client’s data marketplace.

Business impact
Rapid delivery of a pilot that delivered
value in less than eight weeks was possible byleveraging Capgemini’s ready-to-deploy ESG
Hub data solution, blended with an inventoryof sustainability use cases. A foundationthat enables comprehensive ESG data andanalytics exchange with agile implementation
to integrate ESG integration into investment
decisions , por tfolio constr uction, andreporting, with trusted data and robust
governance mechanisms, was implemented
in just four weeks.

World Wealth Report 2023

14

Prioritize investment in digital
tools and relationship manager
productivity

76%of the WM
executives
surveyed said
improving client
experience is vital

As 2022 global markets floundered, with equity
and bonds historically underperforming, some highnet-worth clients became skittish. As a result, arising outflow of investments led to declining assets
under management (AUM) and a dip in earnings for
wealth management (WM) firms.23
For large and diversified universal banks with
WM units, escalating interest rates fueled highinterest income to hedge against dwindling AUM.
However, organic revenue growth remained understress. The market has been particularly tricky forpure wealth management firms as investors shiftedto cash deposits outside the firm’s purview.
In addition, the 2022 cost base of wealthmanagement firms remained high, if not higher,
year over year from 2021. With stressed revenue
sources, we expect the average WM firm cost-toincome ratio to average around 65% to 70% as
per our estimates. As market uncertainty persists,
controlling costs while trying to expand margins
remains top of mind for wealth management firms
in 2023 and beyond.
With the rise of operational costs, and customer
churn and declining profits keeping WM executives
up at night, developing strategic plans to maximize

productivity, improve client engagement
and experience, and unlock value streams isnow essential to sustain long-term businessgrowth. Of the WM executives surveyed, 76%
said improving client experience (CX) is vitalto strengthening HNWI engagement andreducing churn; 66% said they are prioritizing
digital infrastructure upgrades, and 48% said
exploring partnerships or synergies withreliable third parties is essential to maximizing
productivit y. From France, the Head of
Strategy at Société Générale Private Banking,Damien da Cruz says, “Private banks need tolook more systematically at opportunities
for industrial partnerships with specialized
players or other banks to mutualize noncore activities, rather than trying to build
capabilities alone.”
In 2022, a leading bank with privatebanking operations in the US engaged with
Capgemini to upgrade their IT infrastructure.
As a strategic partner, Capgemini helped thebank to modernize its core banking system,
to set up and operate its cloud environment,
and to improve integration with its third-party

Figure 6. Client experience tops the priority list of wealth management executives

Productivity

Customer experience

76%
66%

New value

68%
48%

36%

Upgradingtechnology
infrastructure

Modernization
throughmutualization*

Improving
CX

Investing tosupportchanging clientdemands

Partnerships
with WealthTechs
and ecosystem
players

40%

Expandservices tothe aﬄuent
segment* Mutualization is where participants share solutions provided by a reliable independent third party enabling eachﬁrm to reduce costs and transformation risks, accelerating time-to-market while freeing up management attention
and critical resources
Source: Capgemini Research Institute for Financial Services Analysis, 2023.

World Wealth Report 2023

ecosystem. The open architecture resulted inlower costs and helped the bank increase its
straight-through processing rate, thus improving
the customer experience. Further, the bank is
now able to launch new products and services
to the market quickly and operationalize them
faster – thanks to a modern platform built forchange.

Empower relationship managers
with digital capabilities
Relationship managers (or financial or wealthadvisors) work at the intersection of thesestrategic priorities, though enabling them tocatalyze all of the above business goals is easier
said than done. The wealth management value
chain is rife with cumbersome, time-consuming,
error-prone manual processes. Beginning withclient prospecting, firms struggle to track sales
funnel activities such as lead-to-close rates, client
conversation rates, and the time, effort, andfinancial investment it takes to move a lead to aclient. Sales and marketing automation tools are
crucial to collect, gather, and analyze prospect
data stuck in form fields of multiple systems.
One in three wealth management executives
told us that critical tasks – such as client accountopening, know-your-customer (KYC) processes,
and other due diligence – still require significant
and intense manual intervention. Therefore,client onboarding is complex for RMs, requiring
time-consuming exchanges and coordination
between departments.

Without digitalization, anti-money
laundering (AML) and KYC regulatory processes
remain slow and paper-based. For example, some
HNWI onboarding can still take more than 40days to complete. 24 Not surprisingly, only 47%of the HNWIs we surveyed say they are satisfied
with their firm’s onboarding capabilities. Lagging
RegTech capabilities and rising regulator ycomplexity drags the onboarding experiencedown.
On average, only one in three wealthmanagement executives ranked their firm’s endto-end digital maturity as high. Forty-five percent
of WM executives said the cost per relationshipmanager is rising, driven primarily by wealth value
chain inefficiencies.

The legacy technology is thestatus quo around friction-filled
inefficient wealth processes. Clients are
not engaged in the process and truly
included in the wealth journey. As aresult, there is a significant disconnect
between advisors and clients.”

Jacqui Henderson
Founder & CEO, Advice Intelligence15

World Wealth Report 2023

16

Digital immaturity causes client
friction
Digital inefficiency impacts the high-networth client life cycle, from acquisition to service
and relationship building. Only one in two HNWIs
is satisfied with the touch points their WM firm
offers. Digital channel experience and maturity
ranks high for HNWIs when selecting a wealthmanagement provider.
COVID-19 necessitated the digitalization ofseveral client touch points and influenced HNWI
expectations. In today’s post-pandemic world,clients want to reach their RMs through various
channels. However, 58% of surveyed RMs said
managing client expectations of 24/7 availability
is challenging. Channels often operate inisolation and are not synchronized for crosscommunication.
For example, despite most wealth management
firms offering a mobile app, many HNWIs still
prefer to call their RMs for basics such as executing
transactions and accessing their portfolio (Figure 7).
As the WM client base skews younger in the years
ahead, digital channels will quickly become evenmore critical.
T he overall s at isfact ion w it h wealt hmanagement mobile apps was underwhelming
compared with mobile app satisfaction in industries
such as health insurance, utilities, hotels, airlines,
auto insurance, and banking according to a JD Power

Study. 25 Therefore, WM firms that synchronize
omnichannel interactions position themselves totarget, acquire, serve, and nurture relationships
with emerging Gen Z clients.

Relationship managers spend
a lot of time on manual back- andmiddle-office tasks. Therefore, it is
crucial to digitize manual processes sothey can spend more time with theirclients, which will eventually resultin a more productive and profitableengagement.”

Sabine Caudron
Head Private Banking, Degroof Petercam

NURTURESERVEACQUIRE

Figure 7. HNWIs continue to value in-person engagement
Face-to-facemeeting

Phone call

Mobile app

WebsiteVideo call

Searching

32%

22%

9%

22%

15%

Onboarding

20%

23%

10%

26%

21%

Advice(portfolio building)Managing queries
and concerns

25%

27%

9%

18%

22%

23%

28%

11%

20%

19%

Executing transactions

20%

23%

14%

26%

17%

Accessing portfolio

16%

22%

15%

32%

16%

Market updates

14%

23%

16%

30%

18%

Personalized updates

16%

22%

17%

29%

17%

Expert advice

27%

25%

10%

20%

18%

Top 2 channel preferences of HNWIs
Source: Capgemini Research Institute for Financial Services Analysis, 2023.

World Wealth Report 2023

Administrative overload causes
RM advice and service delivery to
sufferLagging digital readiness and pooromnichannel platforms drag down RM efficacy.
RMs spend two-thirds of their time on non-core
activities (activities that do not generate revenue)
and only a third of their time on pre-sales efforts
and client interaction (Figure 8). US-based John
Mathews, Head of Private Wealth Management
Americas at UBS, added, “In the last 10 years, the
UHNW client band has expanded significantly.
This has impacted the efficiency and productivityof advisors and impacted their ability to spend
more time with their clients. Some advisors also
had to let go of a few relationships to manage
their capacity. Focus has now shifted towards
embracing technology and tools like CRM toenable and empower relationship managers.”
Less-than-stellar productivity from relationshipmanagers can take a toll on a WM firm’s ability tooffer relevant, timely financial advice and valueadded expertise:• Globally, 56% of HNWI survey respondents saidvalue-added services (e.g., tax planning,inheritance advice, estate management, legal
consultation) influence their selection of a wealthmanagement firm. The percentage was even higher
in North America (71%) and APAC (65%).

17• Yet only one in two HNWIs were satisfied with
their relationship manager’s capacity to deliver
these value-added services.
And based on collected feedback from RMs
themselves, 50% said that personalizing client
engagement is challenging, and the inability
to individualize advice and deliver value added ser vices limits up-sell and cross-sellopportunities. WM executive feedback echoed
this finding, as only 37% of WM executives weresatisfied with revenue growth per relationshipmanager.

We want our relationshipmanagers to spend the vast majority of
their time with clients, in good times
and even more so in tough times. We
are investing in technology to make thework of analyzing and optimizing client
portfolios easier - finding opportunities
to improve outcomes for clients andensuring that our people provide thebest service to our clients.”

Annabel Spring
CEO, Global Private Banking & Wealth, HSBC

Figure 8. RMs struggle to prioritize time for core client engagement activities

Non-core activities
67%

Core activities
33%
13%
11%

11%
9%

Source: Capgemini Research Institute for Financial Services Analysis, 2023.

Travels andeventsHR and trainings

Onboarding

Tax andcompliance

Loans

Internal
administration

6%

7%

Portfolio
management

8%

Clientinteractions

10%

Commercial preparation
and Investment

8%

Investment order
execution

7%

Market and productknowledge

Time spent by RMs

10%World Wealth Report 2023

18

In addition to the impact on RM profitability( high cost and low revenue realizat ion),lackluster digital experiences and broken client
journeys affect HNWI willingness to advocate
for their firm. For example, only 25% of HNWIs
recommend their WM firms to their friends,
relatives, and colleagues. And nearly 31% said
they would likely switch wealth management
providers in the next 12 months.

WM firms begin to address value
chain gaps
Generally speaking, wealth management
firms are slow to embrace digital transformation.
However, as with other industries, the pandemic
was a black swan event that made change asurvival necessity. As a result, nearly half (45%)
of the wealth management executives we polled
said they were pursuing digital transformation
for their organization and explained their stagesof digital maturity.
A three-stage approach should be considered
towards digital maturity, from implementing
foundational technologies to building a value
expansion layer (Figure 9).
1.Strengthen the foundation: The pandemic
accelerated cloud adoption across all financial
ser vices domains. Of the 88% of wealthmanagement executives who said their firm ispursuing cloud migration, more than a third (36%)
added that migration is progressing quickly (nearly
90% complete).
In addition to the cloud, 63% of WM executives
told us they are quickly expanding internal
application programming interfaces (APIs). The
cloud and internal APIs can improve data handlingcapabilities, eliminate functional silos, and integrate
disparate workflows to offer a more consolidated
view of operations.
2. Maximize efficiency: At the mid-way
point, digital maturity tends to lag as only one
in two wealth management executives said theirfirms had begun to decommission legacy systems(in phases) to rationalize their IT footprints on
the back of increasing cloud maturity. Nearly
half (47%) of wealth management executives saytheir firm is in the early stages of building cloudnative applications, of which 20% are still without
a specific plan.
Challenges stem from managing the inherent
complexity of a multi-cloud environment as
WM firms lack the talent, tools, and skills tocreate interoperable workflows in multi-cloudenvironments. The formidable task of data
integration aggravates digital investment value
realization.

Figure 9. Advanced digital maturity directly aﬀects returns on investment

RM productivity increases

Launching external APIs

Expandvalue

Leveraging AI/ML

Maximizeeﬃciency

Strengthen thefoundation

Automating tasks
Rationalizing IT footprint
Building cloud-native applications
Expediting cloud migration
Expanding internal APIs
Current digital maturity level
Low

High

Based on responses of WM executives
Note: External APIs are used to share a WM ﬁrm’s capabilities with third parties to orchestrate ecosystem
collaboration. Internal APIs simplify the process of linking back-end systems or data between various applications
that control internal operations.
Source: Capgemini Research Institute for Financial Services Analysis, 2023.

World Wealth Report 2023

19

Formue makes the client-centric move from awealth advisory to financial life advisory focus
S candinavian advisor Formue is anindependent wealth manager serving private
individuals, institutions, and organizationsin Denmark, Norway, and Sweden with NOK
140 billion (~USD 15 billion) in assets undermanagement.

Business challenge
The firm sought to redefine the wealthmanagement experience by making it innovativeand meaningful to clients. Its vision for “a richer
life” emphasizes individuals and families, notmarkets. To make room for a more strategic
dialogue with clients, Formue needed to help
RMs shift away from administrative and shallow
tasks and create a hybrid client experience
incorporating all aspects of wealth and its
potential.

Business solution
Formue implemented Salesforce’s Financial
Services Cloud platform solution to help its
relationship managers leverage customer
relationship management (CRM) to shift
from traditional investment advisory andadministrative tasks to financial life management
grounded in proven behavioral finance.
The platform segments Formue clients’
We a lt h i n t o L i fe s t y le, I nv e s t i n g , a n d
Aspirational/entrepreneurial categories. The

firm conducts regular client-family workshops,
webinars, networking events, and reviews
to enable proactive account management
and client understanding. A dynamic data
tool allows RMs, experts, operations, andmarketing teams to access and collect all
client data, including in-person meetings andworkshops. Information is integrated within
Formue’s marketing sales funnel, pulling client
journey details from discovery to engagement.
This data is augmented with an AI-powered
dashboard to allow advisors to prioritize tasks
at a glance and determine next-best actions
efficiently. The dashboard also connectswith Formue’s sustainable excellence center
to offer sustainability advice. A mobile app
connects investors to information about
wealth planning, carbon footprints, private
equity investing, and more. The app also hasa meeting mode so that information shared inmeetings is dynamic and within context of theoverall client experience.

Business impact
Formue’s advisor y framework allows
clients to get more out of their wealth, elevatesclient experience, and allows for enriching
conversations regardless of market behavior.

World Wealth Report 2023

20

3. Expand value: Finally, maximizing digitaltransformation requires firms to orchestrate
ecosystems, build artificial intelligence/machinelearning tools, and automate tasks across thevalue chain. Firms that expand value can potentiallyshift their advisory model – from transactional
relationships to full financial life partnerships.
External APIs and API stores allowing wealthmanagement firms to share, receive, and plugand-play third-party capabilities are critical toenhancing the value chain and leveraging open
banking advantages. For example, external
APIs can boost KYC and onboarding processes
by accessing information from clients’ banking
partners. In addition, they can provide payment
flexibility and allow multiple account aggregation
for a 360-degree view of a client’s financial assets.
Forty-four percent of wealth management firms arein the process of launching external APIs, of which
18% are not yet ready to make a move.
Artificial intelligence (AI) can impact theentire wealth management value chain – frommodeling data to assisting in portfolio building topersonalizing offerings.
• For instance, thanks to AI, Charles Schwab is
now able to build, monitor, and automaticallyrebalance a diversified portfolio based on aclient’s goals.26• Similarly, Morgan Stanley has developed a Next
Best Action (NBA) system that leverages
machine learning to consider clients’ life
events and generate hyper-personalized
investment proposals in near real-time.27
The dialogue format of fast-advancing
generative AI technology (ChatGPT launched in
Q4 2022) may soon provide personalized offers,
conversational virtual assistant support on complex
queries, and specific wealth planning advice.
Morgan Stanley is collaborating with US researchlab OpenAI, the group behind ChatGPT, to build aninternal-facing service that supports relationshipI'd argue there's never enoughtime in a relationship manager'sday. Back-office automation andimplementation of AI-enabled tools arepriorities for today's WM firms and a
lot of investments should go into these
initiatives to free up RMs for moreclient-facing time.”

Greg Gatesman
Head of International Wealth Management,
Morgan Stanleymanagers by mining in-house research, analyst
notes, comparative models, etc. to help serve
clients better.28
Despite the benefits, building, piloting, andscaling AI at the enterprise level remains challenging
for many wealth management firms. More thanhalf (56%) of the WM executives we polled said
their firm is in its early planning stages, and 22% of
respondents said they didn’t plan to take on AI soon.
Chris McDonald, Industry Specialist, Capital Markets
at AWS, says, “Wealth management firms wantto provide their advisors and front office with a
360-degree client view and personalized investment
recommendations. Cloud hosted capabilities
help WM firms across various opportunities, from
optimizing contact centers to integrating thirdparty data to providing personalized experienceswith AI-driven analytics. With these capabilities, WM
firms can provide personalized investment insights
to their clients, saving both time in preparation anduncovering new recommendations.”
The challenge for firms is to build upon
their digital foundation while ensuring thattransformation initiatives don’t become stuckin silos across the wealth value chain. They must
consider end-to-end client life cycle issues toeliminate friction throughout all aspects ofrelationship management.

Integrated capabilities deliver
improved RM productivity andseamless CX
Today advisors rely heavily on client service andsupport teams. They must access the analyst pool tomodel and build portfolios. Meanwhile, the service
desk handles transactional activities like deposits
and opening accounts. Meetings with third-party
specialists may be necessary for philanthropic
activities or clients’ passion investments. And RMs
regularly check with capital markets specialists for
product and asset information and details about
the performance of equities, fixed-income assets,or trades.
During a typical day, relationship managers
would interact with:• Support teams, and risk and compliance, tofacilitate resolution of regulatory issues andresearch for market insights,• Business teams to identify cross- and up-sellopportunities, and• Marketing teams for client communications
and engagement.
As each team is probably at a different stage ofits digital transformation journey, RM productivity
takes a toll on advisory capabilities, and leads to subpar service. As firms advance their digital maturity,
which tools will enable relationship managers toaccess functionalities across the value chain?

World Wealth Report 2023

21

Connecting departments on a single platform
to streamline end-to-end client lifecycle
management
Business challenge
Many private bank s and wealthmanagement firms seek to evolve their client
knowledge, understanding, and services tomeet ever-increasing client expectations.
Yet, firms often face narrowly scoped, poorly
connected solutions that result in inefficient
processes full of manual steps or workarounds.

Business solution
Paris-based Indosuez Wealth Management,a branch of the Crédit Agricole Group, turnedto the Wealth Dynamix solution from its
subsidiary Azqore to overcome client lifecycle
friction. Azqore provided a comprehensive,industry-specific solution that orchestrates
the entire client lifecycle, from intelligence-

driven pipeline prioritization and prospectmanagement to automated digital onboarding.
The solution offer s Indosuez advisor sinsights to comprehensively understandeach client via rich 360-degree views thatfeature embedded interactive analytics.

Business impact
Indosuez Wealth Management connecteddisparate departments on a single platform.
The solution reduced client onboarding time by
90%, from a 14-day industry average to sameday onboarding. It also helped improve theefficiency of complex processes by 70% andboosted relationship manager productivity byeliminating administrative tasks.

World Wealth Report 2023

22

The relationship manager is an architect. WM
firms must shift from the status quo in which RMs
do everything alone to a supportive situation to help
them get through complex regulatory, product, andcompetitive issues. Acting as a liaison with internalteams, the RM should be able to mobilize andorchestrate the right experts at the right time/life
moments to serve the client.
To maximize R M productivit y, wealthmanagement firms need to offer RMs a one-stopshop digital workstation, as an integrated interface
to access disparate functionalities and orchestratesuperior client experiences. This digital workstation
will integrate processes, systems, data, and advisory
tools within a single desktop interface. As a result,
RMs can seamlessly access all relevant client
information and functions, expediting the service
delivery process.
• Moreover, scaling and onboarding new RMs on
digital workstations would be economical andeasy, with WM executives saying they could
reduce onboarding time by nearly 30%.
• In addition to consolidating and managing theeveryday tasks of RMs, a digital workstation
can facilitate online and in-person HNW client
meetings ensuring a superior omnichannel
experience, increasing the client face timewith RMs by 15-20%.

Digital workstations can automate several
disconnected and manual processes and encourage
RMs’ use of intuitive value-adding tools. They also
provide a 360-degree view of clients to improve RM
decision-making. As a result, workstation benefits
could potentially boost RM productivity by 25%,
wealth management executives conjecture.

Strengthen the foundation to
unlock the next big opportunity
Digital transformation is key to improving thewealth management value chain, reducing thecost base, and uplifting RM productivity. These
efficiency gains allow RMs to shift their focus tovalue-adding tasks and client interaction, thereby
creating new revenue opportunities, both crosssell and up-sell. In parallel, synchronizationof disparate channel s (for example, app,website, branch, call-center) to an orchestrateomnichannel interaction elevates the HNWI
client experience. This is the foundation on which
new value propositions and relationships can be
explored, targeted, captured, and nurtured.

Figure 10. A digital workstation connects RMs to the service and support ecosystem
Disparate functionalities integrated as modules to digital workstation for seamless access

HNWIs RMs

DIGITAL ADVISOR WORKSTATIONACCESS TO
MARKETACCESS TO
CLIENT SERVICINGTEAMSACCESS TO
OPERATIONSTEAMACCESS TO
BUSINESS TEAMS(CROSS- AND
UP-SELLING)
ACCESS FORADMINISTRATIVETASKSACCESS TO
THIRD-PARTY
SPECIALISTS

Real-time
market data

EventsMarketresearch

Visualization
tools

Capital market
scanner• Industry updates• Economy/market
news• Analyst brieﬁngs• Industry
events• Corporate
events• Proprietary
research• Third-party
research• Market charts• Stock trackers• Performance ofequities, bonds,
etc.

Client management

Financial planning
tools

Client ﬁnancials

Client reporting• HNW client proﬁle• Key client data

• Financial modelling• Portfolio optimization• Account activity• Client holdings• Forecast statements• Compliance reports

Order entry

Account
management

Clientcommunication

Access to
ERP system

Banking

Cards

Insurance

Credit advisor

Training

Procurement

Product
information

Service
information

Document
repository

Tax planning

Concierge
services

Account
aggregation

LegaladviceEventplanning

Source: Capgemini Research Institute for Financial Services Analysis, 2023.

World Wealth Report 2023

23

High-productivity RBC Wealth Management-U.S.
relationship managers drive superior experiencefor HNW clients
Overview
Minneapolis-based RBC WealthManagement-U.S. is a global leader, reporting
USD 510 billion in assets under management
as of Jan. 31, 2023. It employs more than 2,100
financial advisors who provide advice and wealthsolutions to individuals, families, and institutions.

Business challenge
Believing that the future of wealthmanagement depends on relationships, RBC
Wealth Management leaders realized that thedefinition of “relationship” is prone to fast change
in the digital world. So, they set out to overhaul
the organization’s processes and systems toensure long-term success. They used a legacy
customer relationship management (CRM) tool
reliant upon 26 systems to gather client data.
Unfortunately, the time-consuming process
could not consistently ensure synchronizeddata sharing between systems. As a result,advisors spent time with administrative tasks
at the expense of generating new business.
Through a 2017 survey, RBC learned that 1 in 4
recruits accepted jobs at competitor companies
because of the state of their digital technology.

Business solution
F ir m execut i ves coll aborated wit h
Salesforce and selected Financial Services
Cloud, a purpose-built platform that unites
RBC Wealth Management client data into asingle source of truth. The platform allows
relationship managers to access client

information easily from their desktops. A
seamless data exchange between Financial
Services Cloud and the other systems also solves
the problem of inconsistent data between
systems. Speed to market was an importantconsideration to catch RBC up with competitors
technologically. The solution also offers backend reporting, a new benefit for the company.

Business impact
Now, advisors create and customize reports
instantly while accessing real-time analytics
around their books of business – from theirdesktop. Regulatory compliance solutions,such as Client Best Interest, can be built into
the platform to keep advisors focused on client
protection while helping management augment
regulatory transparency and immediacy. The
Salesforce solution launch took six months,
including integrations with RBC legacy systems.
Initially, the desktops included basic templates,
but advisors later customized them to fit the
information they needed in the way they wanted
to present it. With a single source of truth,
entering data into the platform updates 90%
of advisor systems for substantial time savings.
Opening a new account had taken days or weeks,
but now it is accomplished in hours. The platform
allows RBC advisors to focus on clients andbuild new business. RBC Wealth Management
reported a 95% adoption rate of the platform,
which illustrates the value of digital capabilities.
Transformation also turned around recruitment
efforts and kept retention strong.

24World Wealth Report 2023

Unlock new growth opportunities
through the affluent segment
Expanding the pool of potential wealthmanagement clients is now an imperative tohelp drive long-term growth across the industry.
WM providers need to look beyond their current
HNWI base. It is the affluent segment (USD 250k-1m)that now presents a new frontier as this population
continues to grow in size and financial clout.

Historically, wealth firms have focused their efforts
on attracting and servicing the needs of the high-networth client. The market is changing, and many wealthfirms are now broadening their client focus to include theaffluent segment, a 50 billion dollar untapped market
opportunity. This segment is growing fast, needs help withfinancial literacy, easy financial planning and tools that
permit them a collaborative experience with their advisor”

Michelle Feinstein• With nearly USD 27 trillion in assets – almost
32% of total HNWI wealth – and a large andincreasing population base, the affluent
market segment dominates a sizeable chunkof the wealth pyramid (Figure 11).29• Regionally, North America is home to nearly
46% of the affluent segment in wealth,followed by Asia-Pacific that represents thesecond largest market, with an almost 32%
share of global affluents wealth. Today’s aging
HNWIs typically take a conservative investment
approach – with a less hearty risk appetite andfrequent fund withdrawals – resulting in slow
growth for WM firms. In contrast, affluents
captured in their early life stages can growwithin the wealth management ecosystem tobecome HNWI clients. They are more likely toseek growth assets and pursue long-term
investments. Targeting and capturing theaffluent segment can help firms to balance
their client mix.

GM & VP, Wealth & Asset management, Salesforce
Figure 11. Aﬄuents outnumbered HNWIs by 2.5x in 2022
CAGR 2015–2022: 3.8%
Annual growth 2021–2022: 2.3%

53.8

2022F

2021

2020

2019

(of investable assets, excluding primary residence)

41.7

2018

Aﬄuents
US$250k-US$1m
Mass Aﬄuents
US$100k-US$250k
Mass Market Up to US$100k

50.9

40.5

2017

The next opportunity

47.2

47.8

44.6

2016

Mid-tier
Millionaires
US$5m-US$30m
Millionaires Next Door
US$1m-US$5m

2015

UltraHNWI
US$30m+Aﬄuent population in million

52.6

Sources: Capgemini Research Institute for Financial Services Analysis, 2023; GlobalData’s Wealth Markets
Analytics, 2023.
Note: The data on the right chart represents the population of individuals with investible assets between US$300k
and US$1m. Aﬄuents are deﬁned as individuals with liquid assets between US$250k and US$1m. This data is
considered a proxy for the aﬄuent population due to minimal diﬀerences in the value of investible assets.

World Wealth Report 2023

Are affluents a good fit withtraditional wealth management
firms?
We estimate the affluent segment totals
around USD 40–50 billion of WM firms' annual
total addressable market. However, despite
co nsid er ab le revenu e p o tent ial , wealt hmanagement firms are yet to find their way interms of how best to address this segment.
• 52% of surveyed executives said universal
banks with a wealth management divisionconsider affluents a prominent customer
segment.
• However, a third of their bank s are notexploring this segment and have no short-term
engagement plans. From a pure wealthmanagement firm perspective, only one inthree executives consider affluents a segmentof interest.
Concern about profitability is the primary
apprehension. Despite its large population,affluents are yet to prove growth and profit
potential on par with the HNWI wealth band
(Figure 12). At Norway-based Nordea Private
Banking, the Head of Frontline Support, Jan
Magne Berge, said, “For the affluent segment
to become a continuous opportunity, we needa more cost-efficient model. And we need thecapacity to serve customers effectively andpersonally.”
Some wealth management firms ser ve
affluents with pure robo -advisor y models
featuring commoditized offerings and limited
value-added services. While this approach iscost-efficient, the lack of differentiation sparks
clients’ price sensitivity, lukewarm loyalty, and atendency to jockey between firms in search of
better prices. As a result, WM firms lose money
on ill-fated client acquisition and retention
efforts.

The expanding wealth continuum
represents a significant opportunity
for wealth management firms to tap
into the growing affluent segment.
Technology-enabled AI/data solutions
allow firms to scale and democratize
their services without requiring
significant additional resources.”

Sanjoy Sen
MD, Group Head of Consumer Bank, DBS

Market growth

Figure 12. Unproven aﬄuent segment proﬁtability creates doubt about long-term
market potential

The chart is not to scale and is for illustrative purposes only.
Ultra-HNWI
Large market
with unclear
proﬁt potential

Mid-tier
millionaires

Millionaires
next door
AﬄuentHNWI client base with highproﬁtability but relatively
smaller market size

Size of the bubble denotes market
size in terms of population
Source: Capgemini Research Institute for Financial Services, 2023.

Proﬁtability

25

World Wealth Report 2023

26

Nonetheless, prevailing indecisiveness intargeting and serving the affluent segment leads
to poor reach and engagement while pushing thissegment to independent advisors.

An affluent customer is more
likely to move based on price versus
perceived value or potential return.
So affluent customer loyalty will likely
remain significantly lower than highnet-worth individuals.”

Stuart Grant
Head of Capital Markets, SAP

46%

of affluents said
WM firms do notoffer them valueadded services

The affluent segment is in needof advice and attention
Our 2023 affluent customer survey foundthat only 57% of individuals within the affluent
segment look to relationship managers of any
kind for investment advice. In addition, about one
in three expect value-added services, including
tax planning, mortgage management, portfolio
management, and other advisory services.
We asked affluent wealth band individuals
how they currently get investment advice.
Looking at aggregated results globally, 43% said
they rely on independent wealth advisors; muchsmaller numbers of affluents said they look toretail banks or traditional wealth management
firms for investment services, only 17% and 5%,
respectively, whereas 20% said they manage
their own investment s via do - it- your self
approaches or tools. Survey results did indicate
some preference or experience differences byregion:• 51% of North American affluents receive
wealth services from independent wealthmanagers, with percentages using retail banks
and traditional wealth managers essentially on
par with the global numbers. Nineteen percent
said they manage their investments alone.
• In contrast, 27% of the European affluent
segment said they receive wealth services
from their retail banks, followed by 25% whocount on independent advisors and 5% withtraditional wealth managers. Seventeen
percent of European affluents said they
manage their wealth themselves.

• In the Asia-Pacific region, 58% of affluent
segment survey respondents said they rely on
independent wealth managers; just 10% said
they turn to retail banks, and half that number
engage with traditional wealth management
firms. About one in four manage their wealthalone.
It is not surprising, then, that affluents face
investment friction and challenges:• 58% of affluents said they lack the knowledge
and support to make investment decisions
during times of volatility, such as in 2022.
• 46% of affluents said WM firms do not offer
them value-added services.
• Nearly 42% of affluent s are unaware ofinvestment-related risks and their investment
strategies are not aligned with their life goals.
• Almost one - third of sur veyed aff luent
investors said robo-advisory service does noteffectively answer their questions.
These challenges stifle affluents’ overall
investment advisory experience and satisfaction:indeed, only 18% of survey participants said
they were satisfied with their current wealthmanagement service provider. All of this data
describes a wealth band that could benefit fromexperienced guidance. Therefore, the timing isright for wealth management firms to step in tomeet the pent-up needs of the affluent segment.

Even when markets are highly
volatile, HNWI clients benefit fromwealth advice, timely and tailoredinvestment recommendations, andvalue-added services from theirwealth manager. However, the affluent
segment often does not have the same
access to advice.”

Christine Ciriani
CEO EMEA, InvestCloudWorld Wealth Report 2023

New business models to open
doors to profitable reach andengagement
Before taking the plunge on expanding thewealth segments they serve, WM firms willneed to solve the tricky equation of keeping
operational costs low while at the same time
providing the expertise and ser vice thatthe affluent segment seeks. WM firms willneed to shift from commoditized offerings
to mass personalization – but customizationand staff engagement are a pricey approachas near-term margins will be low. Therefore,technology-enabled customization, based onbroad client segmentation, has to be the way
forward. Moreover, firms that focus on younger
members of this new wealth band can derive
added benefits – improving their client mix andmaximizing client lifetime value.

The mass-affluent segment
represents a vast opportunity (nearly
USD 50 billion). However, it is a complex
wealth band requiring dedicated teams
and a digital platform to reap inherent
benefits.”

Stephane Gomis
Deputy CEO, AZQORE SA
We see three different approaches that
wealth management firms should consider as
they figure out how they might best serve theaffluent market. And real-world examples exist
for each of these strategies today.

1. Leverage existing wealth management
structures
Based on our survey, one in three wealthfirm executives globally considers building out
existing infrastructure and creating/leveraging
in-house teams to target and serve affluents as
the best way to pursue this new opportunity.
Nearly half of universal banks and 29% of purewealth management firms rated this model as
the best way forward.
• Selection of this option requires wealthmanagement firms to speed up digitaltransformation to boost productivity andrelationship manager efficiency, develop
artificial-intelligence-driven digital tools, andorchestrate client- facing, omnichannel
experiences.
• Effectively catering to the needs of the large,
diverse affluent segment will also require
wealth management firms to pair clients with
best-fit relationship managers. Banks are
already exploring artificial intelligence (AI)tools and capabilities to help affluent clientsfind advisors best suited to their needs andexpectations, while optimizing ser vice,outreach, and engagement costs.
As one current industry example, during thefourth quarter of 2022, Bank of America’s wealthmanagement division, Merrill Lynch, launched adigital platform, Merrill Advisor Match, to match
affluent customers with advisors. More than
5,000 Merrill relationship managers trained touse the platform, which collects data regarding
investor attitudes, behavior, and life goals.
According to the survey, 43% of the affluents
said their investments do not align with their life
goals.30 Platforms such as Merrill Advisor Match
are able to connect clients and advisors based on
multiple dimensions, resulting in a higher degreeof personalized engagement.

27

World Wealth Report 2023

28

2. Develop a WaaS proposition

However, WaaS is not enthusiasticallyembraced as a winning strategy by all. Our survey
findings on this topic include the following:• Overall, just 22% of WM executives said
embedding financial advisory into affluents’banking relationships is a move they would
support.
• Not all universal banks support embedding
and delivering wealth services through a retailarm, with only 14% backing the strategy.
• In contrast, pure wealth management firms arekeener to leverage the WaaS model, withnearly one in four saying WaaS could be an apt
strategy to reach and serve affluents.
Another related approach is for wealthmanagement firms to offer as-a-service modular
wealth capabilities, including onboarding, KYC,
custody, brokerage, advisory, and white-labelrobo-advisory to independent advisors. Like
retail banks, Registered Investment Advisors(RIAs) can become intermediaries that help large
WM organizations acquire and serve the affluent
segment. In addition, third-part y channel
partnerships may help WM firms monetize theirdigital infrastructure through a WaaS revenue
stream.

Figure 13. Wealth-as-a-Service (WaaS) oﬀers a path to aﬄuents through third-party
channels

Aﬄuent customers

Channelsof surveyed
affluents said theywould like WM
services from theirbanks

Retail bank business line

Abstracted
capabilities

71%

A growing financial services (FS) businessmodel is Banking-as-a-Service. FS firms leverage
open application programming interfaces(APIs) to embed regulated products within theplatform of an FS or non-FS third party. Likewise,
wealth-as-a-service (WaaS) can enable WM firms
to package core capabilities into modules andembed them with third-party partners, such asretail banks or independent advisors (Figure 13).
WaaS can streamline the delivery of costeffective wealth management ser vices toaffluent clients at the appropriate time andthrough the right channel. It also allows WM firms
to leverage clients’ banking data to customize
offerings.
The as-a-service approach can be extended to
brokerage-as-a-service, custody-as-a-service, andother services, including portfolio management,risk scoring, and financial wellness using retailbanks as intermediators. Of surveyed affluents,
71% said they would like wealth management
services from their retail banks. Olivier Goerens,
Head of Marketing Private & Wealth at Belfius
Bank, believes that “combining existing wealthmanagement and retail infrastructure should
help capture the affluent segment effectively
and profitably.”

ClientFinancial Model
Assetplanning selection onboarding allocation

Independent wealth advisors
or registered investment advisors

Portfolio Custody andclearing
construction

Wealth management stack
Source: Capgemini Research Institute for Financial Services Analysis, 2023.

Trading

ReportingWorld Wealth Report 2023

Goldman Sachs partners with independent
advisors to target and ser ve affluent s. It
developed custody platform Advisor Solutions toencourage independent wealth advisors and RIAs
to include WM offerings within an embedded
environment. 31 And when Cincinnati, Ohiobased United Advisor Group (UAG) launched as a
RIA in Q1 2023, it selected the Advisor Solutions
platform. The arrangement gives UAG a suiteof wealth management solutions, access toback-office capabilities, on-demand add-ons,
and solutions covering alternative investments,
lending, and more.32
WaaS models allow wealth management
firms to explore, target, and serve the affluent
segment, but the potential to lose control ofdata and direct client visibility exists. Moreover,participating firms depend on retail banks and
RIAs to extend reach and engage with affluent
investors.

Multi-national financial institution integrates
retail banking and wealth channels for superior CX
Business overview
DBS Bank is a leading financial services
group in Asia with a presence in 18 markets.
Headquartered and listed in Singapore, DBS
serves critical Asian growth regions: Greater
China, Southeast Asia, and South Asia.

Business challenge
D B S e xe c u t i v e s s o u g h t t o i n v e s t
strategically in cutting-edge technologies toensure continued growth and a competitiveedge. With wealth management among its
priorities, the bank aimed to address thechallenges of scaling, generating traction,and gaining client insights while integrating
its wealth and retail banking strategies.

Business solution
First, the bank prioritized seamlesscustomer journeys that connect the offlineand online worlds. By creating a unified
customer experience (CX), DBS aimed toprovide convenience and accessibility.
Next, the bank reiterated its commitment
to data and artificial intelligence to scalepersonalization and hyper-personalization
for customers and employees. The aim wasto deliver solutions tailored to unique needs.
Another DBS goal was employee productivity
through a one-stop platform that streamlines
internal processes and offers easy access totools and resources.

DBS selected a hybrid approach ofof f- t h e - sh elf to ol s an d tec h n olo gies
complemented by in-house capabilities. It
expanded tech infrastructure and trained
talent to leverage predictive cognitivebanking. More than 100 machine learningalgorithms analy ze >15,0 0 0 customer
attributes to generate relevant nudgesthat are useful yet not intrusive. DBS also
built an in-house platform, Client Connect,
to help relationship managers deliver
meaningful, hyper-personalized advice via a
360-degree client view of financial and nonfinancial data. DBS bolstered equity-trading
CX by integrating these solutions into its
retail banking application, digibank whileaugmenting portfolio management tools
for a consistent omnichannel experience

Business impact
The bank determined that the value
created from it s retail /wealth effort s
was ~SGD10 0 million (USD75 million).
Additionally, clients quadrupled online
equity transactions in 2022 versus 2018.
Customers ranked satisfaction with digibank
at 4.60 (SG) and 4.42 (HK) out of 5.00, andRMs’ client engagement and productivity
improved significantly.

29

World Wealth Report 2023

30

3. Build a dedicated platform
Finally, some wealth management firms
are developing a dedicated platform to target
and serve the affluent segment. Organizations
can build, partner with, or acquire platforms
that offer a one-stop-shop for affluents byconsolidating wealth services, banking, andother value-added offerings, augmented with
self-service tools to improve client engagement(Figure 14)
Using composable architecture and as-aservice pre-packaged modular solutions toassemble a platform without technical debt has
become less daunting than in the past. Building
a digital platform, however, often requires
high set-up costs. And parent firms must crosssubsidize operations before the platform breaks
even. Conversely, decommissioning or exiting theplatform can be equally costly.
Morgan Stanley acquired brokerage firm
E*Trade in October 2020 to engage affluent
investors. 33 The New York-based investmentbank coupled its traditional advisor-driven
wealth management model with E*Trade’s
direct-to-consumer digital capabilities. Morgan
Stanley bolstered its platform capabilities to give
affluent segments greater control, visibility, andcustomization.34

In another example, Swiss banking giant
UBS launched wealth management services for
affluent clients in China via its WE.UBS digitalplatform in October 2022. The quick-to-onboard,
AI - driven platform offers local and global
investment products, investor education, and 24hour tracking based on market developments.35
Banks are not the only financial institutions
launching dedicated affluent-segment platforms
and mobile apps. According to our executive
survey, 47% of pure wealth management firms
support establishing a dedicated affluent
segment platform.
Zürich-based investment firm Vontobel
Holding AG launched it s digital affluentsegment platform, volt, in 2019. And today, volt
by Vontobel is an investment app that delivers
private banking-level service combined with theoption of personal advice. As a result, affluent
clients can access digital investment services
that might otherwise be available only to HNWIs.
The mobile-only app offers personal investment
advice, select pre-built portfolios, and access to
exclusive benefits and alternative investments.
The entire basic portfolio is ESG certified andcompletely sustainable.36

Figure 14. Assemble a composable wealth management platform

Mobil
e ap
p

site
Web

Cus
t
ser odial
vice
s

m

Ad
v
(vi isode r docworkBranch n
et

Finan
cial
pla
nn
ing
Repor
ting

Business
process layer

Existing core
wealth engine

Other asset
services

WM back-oﬃce
layer

Source: Capgemini Research Institute for Financial Services Analysis, 2023.

Core
WM services

visoryo-ad
RobOnboarding

t
en
em
l
t
t
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ll
c

vices
ser ts, etc.)
ing posi
nk de
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en
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nt

ReconciliationrtdeOr emennagmaExisting core
wealth engine

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CRM
Portfo
nt
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geme
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es lingalDistribution
layerWorld Wealth Report 2023

Shaping the wealth management
future – today
We believe WM firms will likely face sluggish
economic growth, low return potential fromassets, and an evolving competitive landscapein the foreseeable future. Irrespective of which
strategic path a firm selects, sustaining longterm growth will require cost management,
new value pools, and a recalibration of the aging
customer mix by adding new segments, such asaffluents, early in their life stages.

As technology advances, firms can reduce
cost-of-service significantly. Moreover, they can
expand personalization from commoditized
modular offerings to tailored products that
resonate with affluent segment aspirations. A
loyal client base with high lifetime value is boundto result.
Progress will require strong top - downcommitment and investments in emerging
technologies and resources as firms soldier
through current headwinds and shape the futureof wealth management.

31

32

World Wealth Report 2023

IN CONCLUSION
Economic indicators predict that investment challenges willcontinue through the months ahead. Expect interest rates
to remain high as central banks continue to rein in inflation.
Meanwhile, uncertain global equity markets, corporate profits,
and unsteady real estate may make it difficult for wealthmanagement firms to generate superior investment returns. As
a result, HNWI expectations throughout 2023 will likely be moredemanding, complex, and diverse: value-added services will takeon greater importance to retain client loyalty. And with sluggish
AUM growth and increasing industry competition, profit margins
will undergo extreme pressure.
We recommend three enabling initiatives for wealth management
firms so that they can sustain current business and grow newrevenue streams throughout the challenging months ahead:
1. Build resilience to fortify value for clients. Increase focus
on alternative investments (hedge funds, private equity,
structured products) to align with HNWI client interests.
Pursue robust ESG-rating frameworks to support RM/client
engagement relative to these investments and to avoid
greenwashing challenges.
2. Empower relationship managers for profitable growth.
Prioritize operational excellence through digital transformation.
Bolster the WM value chain’s digital maturity by embracing
cloud and emerging technologies. Implement high-impact
changes such as digital desktops to maximize RM productivity
and allow greater focus on revenue-building activities.
3. Extend reach to unlock new growth. Choose between
different platform approaches to reach the affluent segment
efficiently. Develop innovative value propositions andpersonalized, tailored products that resonate with this target
wealth band.

World Wealth Report 2023

Partner with Capgemini
The time to transform your business is now
New customer expectations aroundtechnology and easy access to data, and everhigher demands for a seamless and simplified
customer experience are raising the bar highfor wealth management firms. With the addedcomplexity of the regulatory environment,
firms may face increased cost structures, whilefinding revenue growth at risk. As a result, it isessential that wealth managers engage in a deeptransformation of their business. Capgemini
helps clients transform their wealth managementbusiness to a more efficient, sustainable, anddigital business model. Our offerings help you:

Reinvent yourself: Embrace a
new wealth business model
Capgemini helps financial institutions reinvent
their core business model by strengthening
customer experience from the front to back end
with innovative, digital solutions and efficient
operations. Our capabilities across the wealthmanagement value chain allow firms to meet theneeds of new customer segments generating
additional revenue streams and increasing
profitability.

Unify the wealth client andbanker experience throughdigital technologies
Wealth management customers and bankers
are leveraging technology to simplify processes
and to provide immediate access to informationin all areas across the customer life cycle.
Capgemini designs a seamless digital experience
for multi-channel, multi-device, and face-to-faceinteractions. Our leading innovation and design
agency develops best-in-class digital services,
fully integrating the digital user experience forthe wealth management client, the banker, andthird-party partners.

Unleash intelligent advisor
and augmented relationshipmanagement capabilities
The bar is constantly being raised by highnet-worth customers. Capgemini implements
innovative customer relationship management
and customer lifecycle management solutions

that improve sales tracking, enhance customer
onboarding, and make smart Know-Your-Customer
and AI-driven recommendations. We help enhanceyour portfolio management platform through acomprehensive set of computation engines.

Embrace a new wealth management
priority – sustainability
The movement towards sustainability and ESG
investing is rapidly gaining momentum, spurred
on by banks and asset managers aspiring to be
net zero, by the transfer of wealth to Generation
Z and their ESG interests, and even regulatorychanges. Capgemini works with wealth managers tocommit to a net zero strategy and ESG-aligned new
business model and enable monitoring and results
reporting through a solid data foundation. To movequickly and embed sustainability along the entire
investment process, we offer ready to deploy assets
like ESG datahub, an inventory of use cases, ESG
dashboards and access to an ecosystem of partners
across data and platform providers, blended with adedicated regulatory watch team.

Envision user-friendly andscalable “wealth-as-a-service”
for your business
Financial ser vices firms are looking foralternatives to costly, complex, and risk ytechnology transformation. To be competitive,
they need to gain agility and shorten time tomarket. We provide financial services institutions
a better way to leverage technology enabling
modularity and plug and play capabilities withmicro services, API, blockchain, quantum, etc.
In combination with the delivery of superior
customer journeys, this service can be deployed
to deliver added value to the business in quick
steps, rather than over a long horizon before any
benefits are realized.

33

World Wealth Report 2023

34

Methodology
Market sizing
The World Wealth Report 2023 market-sizing
model covers 71 countries, accounting for morethan 98% of global gross national income and
99% of world stock market capitalization.
We estimate the size and growth of wealthin various regions using the propriet ar y
Capgemini Lorenz curve methodology. Using thismethodology, we derive the macro-level value of
HNWI investable wealth annually.
The two-stage model estimates total wealthby market and the distribution of this wealthacross the adult population in that market.
• Total wealth levels by the market are estimatedusing national account st atistic s fromrecognized sources, such as the International
Monetary Fund and the World Bank, to identify
the total yearly amount of national savings.
These are added over time to arrive at a total
accumulated market wealth. The model
captures financial assets at book value, andfinal figures are adjusted based on world stockindexes to reflect the market value of theequity portion of HNWI wealth.
• Wealth distribution by market is calculated by
distributing income across wealth bands basedon a wealth/income relationship formula. The
World Bank, the Economist Intelligence Unit,
and national government statistics provide
data on income distribution. Then, theresulting Lorenz cur ves are utilized to
distribute wealth across the adult populationin each market.
To arrive at the investable wealth as aproportion of total wealth, we apply market
data (where available) to calculate the investablewealth figures and extrapolate these findings to
the rest of the world.
We enhance our macroeconomic model
annually with analyses of domestic economic
factors that influence wealth creation.
The investable asset figures published:• Include the value of private equity holdings
stated at book value and all forms of publicly
quoted equities, bonds, funds, and cash
deposits.
• Exclude collectibles, consumables, consumer
durables, and real estate used for primaryresidences.

• Calculate offshore investments based on
estimates each market provides regarding
their citizens’ flow of property and investments
into and out of their jurisdiction.
• Account for undeclared savings.
Given exchange rate fluctuations overrecent years, particularly concerning the USD,
the impact of currency fluctuations is also
considered. However, our analysis concludes
that our methodology is robust, and exchange
rate fluctuations do not significantly impact on
the findings.
Finally, we actively engage Capgemini’s
global network of subject matter experts to bestaccount for the impact of domestic, fiscal, andmonetary policies – over time – on HNWI wealthgeneration.

2023 Global High Net Worth
Insights Survey
The Capgemini 2023 Global HNW Insights
Survey questioned 3,171 HNWIs across 23 major
wealth markets in North America, Latin America,
Europe, and Asia-Pacific. The breakdown by
region, age, gender, and wealth band, respondent
demographics can be seen in the paragraphbelow.
T he G lobal H NW Insight s Sur vey wasadministered in January 2023 in collaboration
with Aon’s Client Insight, a firm with more than
20 years of experience conducting privateclient and professional advisor interviews in the
WM industry. The 2023 survey covered HNWI
investment behavior, channel preferences,value-added services, preference for emerging
asset classes such as digital assets and ESG
investments, and preference for WM providers.
To arrive at global and regional values andensure survey results represent the actual HNWI
population, we use market- and region-level
weightings based on the respective share of the
global HNWI population.
Our HNWI survey had diverse representation:• by Wealth Band – $1–5MN: 11%, $5–30MN:
34%, $30MN+: 55%• by Age Band – Under 40yrs: 46%, 40–59yrs:
38%, 60+yrs: 6%• by Gender – Male: 57%, Female: 43%

World Wealth Report 2023

HNWI Survey Geographic
Breakdown2023 Affluent Survey
MarketAmericas
US
CanadaBrazilMexicoEuropeUK
Germany
Switzerland
France
Italy
Netherlands
Belgium
Spain
APAC
China
India
Australia
Japan
Malaysia
Indonesia
ThailandTaiwanSingapore
Hong-Kong
South Korea# HNWIs
844
525
103
106
110
761
162
104
56
151
100
55
54
79
1566
384
203
109
131
101
110
113
104
108
95
108

The Capgemini 2023 Global Affluent Insights
Survey questioned 3,203 affluents across 11 major
wealth markets in North America, Europe, andAsia-Pacific. The breakdown by region, age, gender,
wealth band, and respondent demographics can beseen in the paragraph below.
The Global Affluent Insights Survey wasadministered in January 2023 in collaboration with
INJ partners. The 2023 survey covered affluent
investment behavior, channel preferences, valueadded services, preference for emerging asset
classes such as digital assets and ESG investments,
and preference for WM providers.
To arrive at global and regional values andensure survey results represent the actual affluent
population, we use market- and region-level
weightings based on the respective share of the
global affluent population.
The affluent survey had diverse representation:• by Wealth Band – $250k–500k: 45%, $501k–1M:55%• by Age Band – Under 40yrs: 35%, 40–59yrs: 60%,
60+yrs: 5%• by Gender – Male: 69%, Female: 31%35

Affluent Survey Geographic
BreakdownMarketNA
US
CanadaEuropeFranceGermany
UK
Switzerland
APAC
China
Hong-Kong
Singapore
India
Australia# Aﬄuents
1000
700
300
1202
300
300
301
301
1001
200
250
250
101
200

2023 Global Wealth Management
Executive Survey
To bring in the WM industry perspective, we
also conducted surveys of WM executives andwealth managers across North America, Europe,and Asia-Pacific. Surveys were administered in
January 2023 in collaboration with Phronesis
Partners, a cross-industry global research andanalytics firm. The 2023 Wealth Management
Executive Survey covers more than 95 responses
across 14 markets, with representation frompure WM firms, universal banks, independent
broker/dealer firms, and family offices. The
survey drew on executive insights regarding theirfirm’s prioritization of customer engagement andevolving segments, market trends, the role of therelationship manager in a bear market, and future
strategies to empower relationship managers.
The executive survey witnessed representationfrom WM firms (35%), universal banks (24%),
independent brokers/dealers (30%), and family
offices (11%).

2023 Global RelationshipManager Survey
The 2023 Relationship Manager Sur vey
executed by Phronesis Partners and covers morethan 800 responses across nine markets. The
survey questioned relationship managers about
their views on the firm’s WM strategy priorities,
their satisfaction with the support provided bytheir WM firm, and customers’ increased interest in
new products/offerings. The relationship manager
survey witnessed representation from North
America (25%), Europe (59%), and Asia-Pacific (16%).

World Wealth Report 2023

36

Ask the experts

Nilesh Vaidya

Marie Wattez

Global Head of Banking and Capital Markets

Global Head of Private Banking & WM

nilesh.vaidya@capgemini.com

marie.wattez@capgemini.com

Nilesh has been with Capgemini for 20+ years
and is an expert in managing digital journeys forclients in the areas of core banking transformation,
payments, and wealth management. He works
with clients to help them launch new banking
products and their underlying technology.

Marie leads Capgemini Private Banking &Wealth Management capabilities globally. She
has helped major banks define their strategy
and transform and turn around their business,
operating models, and technology platforms
across HNWIs, mass affluent, and family
offices.

Roy CrocianiMaxime Gaudin

Banking & WM Leader, APAC

Head, Wealth & Asset Management Practiceroy.crociani@capgemini.com

maxime.gaudin@capgemini.com

Roy has extensive experience working in andacross retail and commercial banking, wealthand asset management, digital transformation,
and FinTech startups and scale-up. Roy has apassion for leveraging technology to transformand create new businesses and deliver great
products and services to customers.

Maxime leads the Wealth & Asset Management
practice in Capgemini Invent – France. He
has 20 years’ experience in advising major
institutional investors, investment managers
and private banks in their business strategy,
target operating models and IT strategy from
Front to Back-office functions.

World Wealth Report 2023

Sandeep Kurne

Tatiana Collins

Digital Strategy & Transformation Lead

Head of Financial Services, Invent Asia

sandeep.kurne@capgemini.com

tatiana.collins@capgemini.com

Sandeep Kurne is a Digital Strategy & Business
transformation executive with 22 years ofglobal experience building, re-engineering,and positioning firms for profitability growthand shareholder value creation in the digitalage. His forte lies in collaborating withtraditional and FinTech firms across banking,wealth management and capital markets todrive strategic, complex digital core initiatives
leveraging global alliances.

Tatiana is a leading wealth management APAC
expert specializing in digital transformationand new business models. She has dedicatedmost of her career to helping leading retailbanking and wealth management players
transform their operating models, advisingon their emerging needs related to growth,
innovation, and digital change across Europe
and Asia.

Abhishek Singh

Tej Vakta

WM Practice Head, North America

Global WM Leader & Head of ESG Solutions

abhishekh.singh@capgemini.com

tej.vakta@capgemini.com

Abhishek provides Wealth Management
industry leadership for clients and brings
Capgemini collaboration with industryleading partners to provide innovative wealthmanagement solutions for clients. He hasover 20 years of financial services experience,
working primarily in wealth management andcorporate banking.

Tej is a global WM industry leader and head of
ESG solutions, with over 25 years of diverse
FSI experience as a transformation leader &business driven tech executive. He partners
with CxOs to establish innovation driven
growth strategy and execute enterprise-wide
transformation while empowering to integratesustainability.

37

World Wealth Report 2023

38

Elias Ghanem

Chirag Thakral

Global Head of Capgemini Research Institute forFinancial Services

Head of Banking & Capital Markets, Capgemini
Research Institute for Financial Services

elias.ghanem@capgemini.com

chirag.thakral@capgemini.com

Elias is responsible for Capgemini’s global portfolio
of financial services thought leadership. He has
more than 20 years of experience in FS, focusing
on effective collaboration between banks and thestartup ecosystem.

Chirag leads the Banking and Capital Markets
Practice in Market Intelligence. He has over 15
years of experience as a strategy and thought
leadership professional with in-depth FS expertiseand a WM focus for more than 10 years.

Vivek Kumar Singh

Vaibhav Pandey

Global Program Manager, Capgemini ResearchInstitute for Financial Services

Project manager and lead analyst, World WealthReports Capgemini Research Institute forFinancial Services

vivek-kumar.singh@capgemini.com
Vivek leads the Wealth, Banking, FinTech,and Payment sectors in Capgemini ResearchInstitute for FS and has over 12 years of digital,
consulting, and business strategy experience.
He is a tech enthusiast who tracks industry
disruptions, thought leadership programs, andbusiness development.

vaibhav.a.pandey@capgemini.com
Vaibhav supports the Banking, Payments, andWealth management sectors in the Capgemini
Research Institute for FS. He comes with overseven years of cross-sector research and consulting
experience. In his role, he supports the FS practicewith strategic industry and business insights.

World Wealth Report 2023

39

Key contacts
GlobalIan Campos

FranceNicolas Croquet

Nordics (Finland, Norway,
Sweden)ian.campos@capgemini.com

nicolas.croquet@capgemini.com

Nilesh Vaidya

Johan Bergström

Maxime Gaudin

johan.bergstrom@capgemini.com

maxime.gaudin@capgemini.com

Emilie M. Flaate

nilesh.vaidya@capgemini.com

Stanislas de Roys de Ledignan

emilie.flaate@capgemini.com

stanislas.deroys@capgemini.com

Austria and Germany
Asia (China, Hong Kong,
India, Singapore)
Ravi Makhija

Saumitra Srivastava
saumitra.srivastava@capgemini.com

Svend Erik Kundby-Nielsen
svenderik.kundby-nielsen@capgemini.
com

Joachim von Puttkamer

Spainravi.makhija@capgemini.com

joachim.von.puttkamer@capgemini.com

Andres Alvarez Blanco

Devendra Tripathi

Carina Leidig
carina.leidig@capgemini.com

Elisa Rull Vegas

devendra.tripathi@capgemini.com

James Aylen
james.aylen@capgemini.com
Kamal Misra
kamal.mishra@capgemini.com

Switzerland
Marie Wattez
marie.wattez@capgemini.com

Daniel Corrales

Australia
Roy Crocianiroy.crociani@capgemini.com
Manoj Khera
manoj.khera@capgemini.com
Joanna White
joanna.white@capgemini.com

Belgium and theNetherlands
Stefan van Alen
stefan.van.alen@capgemini.com
Alexander Eerdmans (Netherlands)
alexander.eerdmans@capgemini.com
Martine Klutz (Belgium)
martine.klutz@capgemini.com

daniel.a.corrales@capgemini.com

andres.alvarez-blanco@capgemini.com
elisa.rull-vegas@capgemini.com

United Kingdom
Carlos Salta
carlos.salta@capgemini.com

Geetha Ramakrishnan
geetha.ramakrishnan@capgemini.com

Basak Alhan-Aydin

Italybasak.alhan-aydin@capgemini.com

Dario Patrizi
dario.patrizi@capgemini.com

Michele Inglesemichele.inglese@capgemini.com

Lorenzo Busca
lorenzo.busca@capgemini.com

Japan
Ajoy Bhavnani
ajoy.bhavnani@capgemini.com

North America
Tej Vakta
tej.vakta@capgemini.com

Abhishek Singhabhishekh.singh@capgemini.com

Pascale Nguyen
pascale.nguyen@capgemini.com

Louis Forteguerrelouis.forteguerre@capgemini.com

Nishikawa Hideo
hideo.nishikawa@capgemini.com

Latin America
Middle East

David Cortada Gras

Bilel Guedhami

Lucio Tomas Pegasano

bilel.guedhami@capgemini.com

Vincent Sahagian
vincent.sahagian@capgemini.com

david.cortada@capgemini.com
lucio.pegasano@capgemini.com

40

World Wealth Report 2023

Acknowledgments
We want to extend special thanks to all thebanks, wealth management firms, WealthTechf irms, technology ser vice provider s, andindividuals who participated in our executive
interviews and surveys.

The following firms agreed to be
publicly named:
FS Firms: ABN AMRO, Advice Intelligence,
Adviser Investments, Airfund, Alior TFI S.A.,
Amergeris Wealth Management Group AG,
Amundi Technology, Azqore SA, Banca Aletti– Gruppo Banco BPM, Bank Julius Baer, Bank
Vontobel AG, Bankowość Prywatna PKO Bank
Polski SA, Banque Thaler, Barclays, Belfius Bank,BNL BNP Paribas Private Banking & WealthManagement, BPER Banca, C A Indosuez,
CaixaBank Banca Privada, Commer zbank
AG, Credit Agricole Italia, DBS Bank, DegroofPetercam, Deka Private Banking & WealthManagement, Delen Private Bank, Fideuram –Intesa Sanpaolo Private Banking S.p.A., Formue,
Frankfurter Bankgesellschaft (Deutschland)
AG, HSBC Private Banking, ING Private Bank BE,
InvestCloud, Investsuite, LBBW Asset and WealthManagement, LGT Bank (Schweiz) AG, Maerki
Baumann & Co. AG - Private Bank, Mandatum,mBank S. A ., MedioBanca, Morgan Stanley,
NatWest Group, Neue Privat Bank, NextStageAM, Nordea Private Banking, Nordea WealthManagement Norway, Rabo Bank, Rothschild &Co. Bank AG , RV Capital, Salesforce, Santander
Private Banking, Spain, SAP, Skandia Investment
Management AB (part of Livförsäkringsbolaget
Skandia, ömsesidigt), Societe General Private
Bank, Söderberg & Partners Wealth Management
A B, Sparebank 1 Kapit alfor valtning, The
Roosevelt Investment Group, UBS AG, UFF(Union Financière de France), UniCredit Bank AG.
Technology firms: Salesforce, AWS, Azqore, SAP,
Temenos.
Survey partners: Aon, INJ Partners, Phronesis
Partners.

We would also like to thank thefollowing teams and individuals
for helping to compile thisreport:Elias Ghanem, Chirag Thakral, Vivek Singh,and Ashutosh Kukreti for their overall leadership.
Vaibhav Pandey, Bipin Jose, Sunil Burkul, andAbhishek Gurajala for in-depth market analysis,
research, compilation, and drafting of thefindings. Tamara Berry for editorial contributions
and content leadership. Dinesh Dhandapani
Dhesigan for graphical interpretation and design.
Capgemini’s Global Wealth management
net work for providing insight s , industr y
expertise, and overall guidance: AlejandroMozo, Alexander Eerdmans, Arnaud Monchatre,
Basak Alhan Aydin, Blake Dicosola, Camille
Quenech'du, Carina Leidig, Carmen Castellvi,
Chiara Diana, Dal Castello Fulvio, Daniel Corrales,
Edgar Mendelsohn, Elisa Rull Vegas, Emilie
Flaate, Florian Forster, Gareth Wilson, Geetha
Ramakrishnan, Geoffrey Barthelot, Guillaume
Gilliard, Ilda Dajci, Irene SERAFICA, Isaac Gimeno,James Aylen, Joachim von Puttkamer, Jochen
Wolpert, Johan Meregan, Julien Assouline,
Kavita Nar, Loic Paquotte, Lorenzo Busca, LouisForteguerre, Marc Tabet, Marie Wattez, Mark
Bolton, Martine Klutz, Maxime Gaudin, Michael
Zwieller, Nicolas Pelan Armano, Pascale Nguyen,
Patrick Bucquet, Romain Faraut, Roy Crociani,
Sandeep Kurne, Saumitra Srivastava, Tatiana
Collins, Tej Vakta, Thimoty Cheung, Vanita
Kothari, Vivek Nanda and Victor Suarez.
Laura Breslaw, Marion Lecorbeiller, David
Merrill, Meghala Nair, Swathi Raghavarapu,
Anthony Tourville, Fahd Pasha, Vamsi Krishna
Garre, and Jyoti Goyal for overall marketing
leadership; and the Creative Services Team forgraphic production: Balaswamy Lingeshwar,
Anupriya Andhorikar, and Sushmitha Kunaparaju.

World Wealth Report 2023

About usCapgemini is a global leader in partnering with companies to transform and manage their businessby harnessing the power of technology. The Group is guided everyday by its purpose of unleashinghuman energy through technology for an inclusive and sustainable future. It is a responsible anddiverse organization of over 360,000 team members in more than 50 countries. With its strong
55-year heritage and deep industry expertise, Capgemini is trusted by its clients to address theentire breadth of their business needs, from strategy and design to operations, fueled by the fast
evolving and innovative world of cloud, data, AI, connectivity, software, digital engineering andplatforms. The Group reported in 2022 global revenues of €22 billion.
Get The Future You Want | www.capgemini.com

Financial Services World Report Series
The Capgemini Research Institute for Financial Services is an in-house think tank focused on
digital innovation and technology issues impacting global banks, wealth management firms,
and insurers. The institute annually publishes its signature Financial Services World Reports,
which draw upon primar y research voice- of-the- customer sur veys, CXO inter views, andpartnerships with technology companies and academia. These data-driven perspectives explore
how financial institutions can meet emerging business challenges with transformative thinking
enabled by technology and data. Independent analysts named the World Retail Banking Report
2021, published by the institute, as one of the year’s top 10 publications among consultancy
and technology firms. To find out more or to subscribe to receive reports as they launch,
Visit worldreports.capgemini.com.

Disclaimer
The information contained herein is general in nature and is not intended and should not be construed as
professional advice or opinion provided to the user. Capgemini assumes no liability for errors or omissions or useof this material. This document is provided for informational purposes only; it is meant solely to provide helpful
information to the user. This document does not purport to be a complete statement of the approach or steps
necessary to address or solve any particular matter or to accomplish any particular business goal. The user also is
cautioned that this material may not be applicable to, or suitable for, the user’s specific circumstances or needs,
and may require consideration of additional factors if any action is to be contemplated. The text of this document
was originally written in English. Translation to languages other than English is provided as a convenience to ourusers. Capgemini disclaims any responsibility for translation inaccuracies. The information provided herein is on
an as-is basis. Capgemini disclaims any and all representations and warranties of any kind.

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World Wealth Report 2023

42

Endnotes
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36

CNBC, “Global economy is heading into a decade of low growth, economist says;” December 28, 2022
CNBC, “Stocks fall to end Wall Street’s worst year since 2008, S&P 500 finishes 2022 down nearly 20%;”
December 30, 2022.
Market Screener, “CAC 40 Index Ends the Year 9.50% Lower at 6473.76 -- Data Talk;” December 30, 2022
CNBC, “Stocks fall to end Wall Street’s worst year since 2008, S&P 500 finishes 2022 down nearly 20%;” December 30, 2022
Bloomberg, “After $18 Trillion Rout, Global Stocks Face More Hurdles in 2023;” December 30, 2022.
Ibid.
Morningstar, “5 Charts on Big Tech Stocks’ Collapse;” December 14, 2022.
BNN Bloomberg, “TSX in 2022: A look back at how it performed;” December 30, 2022.
Asia Fund Managers, “India is 2022’s best performing Asia stock market;” January 2, 2023.
Ibid.
PIIE,"China's looming property crisis threatens economic stability;" February 2, 2023.
Asia Fund Managers, “India is 2022’s best performing Asia stock market;” January 2, 2023.
Ibid.
Bloomberg, “Australia Stock Market Winners and Losers, and What to Watch in 2023;” December 28, 2022.
Asia Fund Managers, “India is 2022’s best performing Asia stock market;” January 2, 2023.
Reuters, “Euro zone recession may not be as deep as expected -PMI;” January 4, 2023.
JP Morgan, “Latin America Outlook 2023: Down, not out;” December 14, 2022.
S&P Global Market Intelligence, “Investors avoid traditional growth stocks as US equity markets plunge in ’22;” January 23, 2023.
Ibid
CNBC, “2022 was the worst-ever year for US bonds. How to position your portfolio for 2023;” January 7, 2023.
Reuters, “Hedge funds in 2022 post worst performance since 2018, dragged down by equities -HFR data;” January 10, 2023.
Bloomberg, “Big ESG Funds Are Doing Worse Than the S&P 500;” December 7, 2022.
Citywire, “Four big US banks persist with wealth focus despite $962bn asset decline;” January 24, 2023.
IQEQ, “How to streamline onboarding and attract new investors with tech;” February 23, 2023.
ALM Think Advisor, “J.D. Power: Wealthy Clients Not Happy with Mobile Apps;” March 22, 2019.
Charles Schwab, “Intelligent portfolios;” March 21, 2023.
Early metrics, “Hyper-personalization in wealth management: a trend to watch;” August 17, 2021.
Barron’s, “Morgan Stanley Taps ChatGPT’s Maker to Build AI System for Advisors;” March 15, 2023.
GlobalData Wealth Management data, 2023
Bloomberg, “Merrill’s Sieg on bringing wealth advisors to the masses;” October 5, 2022.
Goldman Sachs, “We are here to serve Independent Advisors,” Accessed April 2023 (US only).
Wealth Management.com, “Goldman Sachs Adds Former Raymond James Team to Custody Platform;” January 6, 2023.
Morgan Stanley, “Morgan Stanley Closes Acquisition of E*TRADE;” October 2, 2020.
Morgan Stanley, “E*TRADE from Morgan Stanley Announces 2022 End of Year Platform Enhancements;” December 19, 2022.
Private Banker International, “UBS introduces new digital platform to target Chinese wealth management market;” October 27, 2022.
Vontobel, “volt by Vontobel: The new investment app offering private banking-level service and personal advice;” December 5, 2022.

World Wealth Report 2023

43

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Capgemini Financial Services
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June 2023. Copyright © 2023 Capgemini. All rights reserved.