February 18, 2016
Wealth management typically caters to the high-net-worth individuals (HNWI) segment and is generally handled by the private banking arms of banks or by wealth management firms. The UK wealth management sector has seen substantial activity on multiple fronts in the past three years: regulations, technology, increasing client base as well as their AUMs, multiple mergers and acquisitions.
This sector is poised to see better growth with several surveys and factors pointing to the UK to be the most favored destination for wealth management.
The private clients’ AUM market in the UK has seen a growth of CAGR 10.4% between 2020–2014 and is expected to grow at a CAGR 9.3% to reach £1.1 trillion by 2019.
The report gives an overview of the UK’s wealth management sector with a detailed analysis of the market size and the key players in the sectors (banks and private wealth management firms).
In the UK, private wealth is largely managed by private banks and private wealth management firms.
And broadly, there are three types of mandate types: Discretionary Investment Management, Advisory Services and Non-Managed Services.
Discretionary investment management is a type of investment management where buying and selling decisions are made by the wealth manager. However, the advisory segment has not witnessed a strong growth in the last five years.
Non-managed services are more like a self-served service where wealth managers advise only when the client needs it. In the last couple of years, there has been a surge in non-managed investments. Non-managed is the segment where robo-advisory has a strong opportunity.
The report highlights the investment activities and digital initiatives of leading firms in the UK wealth management sector. It also puts light on how robo-advisory & white label solutions and analytics are contributing towards evolution of wealth management solutions. St. James Place, HSBC, Coutts (RBS), Brewin Dolphin and UBS are some of the key players in the UK wealth management sector.
Within a very short-term, robo-advisor firms are managing around GBP 3 billion globally. The largest robo-advice firm in the UK, Nutmeg, handles only 55,000 accounts. Nutmeg, Swanest, MoneyFarm and Money on Toast are some of the key robo-advisors in the UK wealth management industry.
White label solution providers offer automated advice and investment management solutions. Startups such as WealthKernel and Mubaloo provide white label solutions for wealth management.
According to the report, wealth management firms across the world are spending billions on IT to differentiate themselves in the market. Analytics in wealth management allows a company to formulate investment strategies for its high-net-worth clientele. Wealth management firms are using big data analytics to gain new insights into their customers & prospects and discover investment opportunities. Many traditional players in the UK wealth management industry are incorporating big data technology to provide enhanced services and solutions. Around 50% of tier I wealth management firms use big data proprietary tools and 25% of tier II firms use big data.
Traditional advisors are also being strategic in leveraging mobile and digital platforms to stay ahead in the competitive market.
Table of Contents:
1. Market Overview of the Global Wealth Management Industry
2. Market Overview of the UK Wealth Management Industry
3. UK Wealth Management Players Focus Areas
4. Comparative Overview: Digital and Technology Initiatives of Top Banks and Private Wealth Management Firms With Respect to Wealth Management
5. Penetration of Robo-Advisors in the UK Wealth Management Industry
6. Analytics in the UK Wealth Management Industry
7. White Label Solutions for the UK Wealth Management Industry
8. Key Trends in the UK Wealth Management Industry