Germany’s onshore wealth management industry is still relatively nascent in terms of its products and services, and its asset management business is deeply rooted within pension channels. Professional family structures, such as family offices, have only come to fruition in the last 10 to 20 years, and Germany is currently experiencing its first true wealth transfer from older generations to younger ones. This environment is a potentially ripe and lucrative opportunity for private banks and wealth managers, but financial institutions need to be mindful of the trends at play. Germany’s Untapped Wealth and Private Banking Market Potential, the latest Aite Group report, examines the various dynamics of the wealth management industry in Germany.
“While the appeal of Germany’s wealth management business is strong, there are polarizing factors at play. On one hand, one can see the dominance of local universal banks and the strong customer relationships they hold, and on the other hand, one can observe asset and wealth managers from across Europe and North America entering and trying to entrench themselves in the German onshore wealth management market,” explains Wally Okby, senior analyst at Aite Group. “At the same time, regulations and risk/compliance are driving focused business strategies, margins are tight, interest yields are flat to negative, and customers’ preferences are rapidly changing,” he adds.
This report explores the state of the German wealth management market in depth and uncovers the prospects and pitfalls that are affecting it. It is based principally on 15 primary interviews with several wealth management practitioners and technology vendors between March 2019 and June 2019, and it is supplemented by desk-based secondary research.
FTSE Mondo Visione Exchanges Index:
Germany’s Untapped Wealth And Private Banking Market Potential - A New Aite Group Report Finds That Germany’s Onshore Wealth Management And Private Banking Channels Have Room To Develop, And That Interest In The Market Is Significant.
Date 07/08/2019