Population of high-net-worth individuals (HNWIs) expanded at 7.5% globally in 2016 versus 4.9% in 2015, and wealth at 8.2% compared with 4% in 2015, according to a report by Capgemini.
Capgemini’s 2017 World Wealth Report (WWR) said Russia recorded the fastest growth, at about 20% for both its HNWI population and wealth, following modest 2015 decreases. Brazil also registered double-digit increases in both population and wealth, following a significant decline in 2015.
The report says that the average HNWI’s investments overseen by wealth managers in 2016 increased in value by 24.3%. The report found that drivers supporting this strong performance included the global investing approach of HNWIs, the prevalence of credit, the growth focused mentality of many HNWIs, and strong asset class performance.
Satisfaction level of HNWI with their firms and wealth managers remained muted at 58.5% and 56.3% respectively, with limited service options and fee structures emerging as possible reasons.
Only 47.8% of HNWIs said they are fully comfortable with the level of fees charged for wealth management services.
While BigTechs have not formally announced their wealth management entrance, majority of HNWIs (56.2%) said they are open to using BigTech services for wealth management, expecting efficiency, transparency, innovation, and excellent online capabilities, the report found.
Capgemini head of global banking and capital markets Anirban Bose said: “Firms that are able to combine their wealth management expertise with BigTech customer experience skills could lead the way by offering truly innovative services.”