What Wealth Managers Must Do to Outperform by 2030: EY Report

An advisor with a client couple

How to outperform in today’s wealth management industry is the existential question confronting its leaders, according to the 2024 EY Global Wealth Management Industry Report.

The report addresses how to win in terms of growth, profitability and sustainable competitive advantage by examining the industry’s evolution, the challenges it must overcome and how to go about doing so. 

Evolving Industry

According to the report, financial pressures on firms, structural changes in the industry, and uncertainty and ambiguity for clients are driving change in reshaping client relationships. Those are at the core of wealth management’s purpose — supporting and coaching wealthy clients in the accumulation, protection and responsible growth of their assets and managing their personal legacy for the benefit of future generations.

Clients are gaining relative power as they increasingly focus on performance, net value, experience and brand reputation. Digitization is transforming relationships in every wealth band, including a growing preference for self-direction among affluent clients.

Even so, wealth managers should remain rooted in their core purpose, EY said. It is crucial for them to appreciate that clients remain firm in their desire for a valuable, trusting relationship with their wealth manager. This is especially apparent when emotional stakes are in play alongside financial ones, at key moments such as market shocks or major life events.

Underlying Challenges

The report explores the underlying industry challenges that firms must address to outperform their competitors in value creation between now and 2030. The research identifies 10 underlying challenges and the questions that C-suite leaders should be asking:

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Stand out in the age of personalization: How can we more systematically provide outstanding personalization and value to all of our clients?

Elevate relationship management: How do we take front-office productivity to the next level while building trust?

Deliver client-centric advice at scale: How can we provide each client with valuable, tailored advice?

Create synergies with modular offerings: How do we make our offering menus comprehensive, clear and appetizing?