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-: I have the great pleasure to announce the 21st edition
of BCG's Global Wealth Report.
After last year's CEO agenda,
this year we are putting the clients at the forefront.
We start by detailing the evolution of wealth,
to then deep dive into the simple needs segment,
the new ultras, and finally the retirees.
Along with uncovering the key dynamics behind each topic,
we also provide tangible actions
that wealth managers can pursue to effectively seize
all these opportunities.
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Against expectations, global financial wealth kept growing
during 2020, reaching an all-time high
of US$250 trillion
thanks to two drivers-
a boom in savings and a stock market effect.
This year, we have added a new lens
and a new perspective to wealth.
We are incorporating real assets and liabilities.
This is leading to a total wealth pool
of US$538 trillion globally.
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Wealth managers are staring at a large market
made of individuals with noncomplex investment needs
and limited financial knowledge,
whose net wealth is between a $100,000
and $3 million.
Successfully serving this segment
requires a new digital wealth management model
to reach a mass audience
in a cost effective and scalable way,
but with an offering that is highly customized
to their needs.
This bionic approach, combining the best of technology
and the best of human,
has five core elements.
The first: a supercharged relationship manager.
The second: contextual, consumable learning.
Third: democratized access to "haute" investments.
Fourth: smarter use and experience design.
And last but not least,
truly simplified and new pricing models.
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More than 6,000 people worldwide
became ultra high net worths,
that have reached a $100 million in investable wealth
or more for the first time in 2020.
This led to a record of 60,000 individuals
for a combined $22 trillion in assets.
The faces, and consequently also the needs,
of the new ultras are changing,
leading to a heterogeneous ultra-high-net-worth bracket
with many subsegments to serve.
To be successful, wealth managers should avoid
seven critical sins
ranging from failing to segment these clients,
to assuming next-generation loyalty.
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Retirees are one of the fastest-growing populations.
By 2050, one out of six individuals
will be 65 years or older.
That's twice the size of today's retiree population,
and it represents an enormous wealth pool.
Retirement comes with distinct evolving concerns,
both financial-such as income stability
and residual balance goals-
and nonfinancial, typically around community,
control, and purpose.
Wealth managers partner most actively with clients
in their accumulation phase.
However, interactions very often wind down
as clients reach their retirement stages.
This leaves many retirees asset rich and advice poor
at a time in their lives when their needs are most complex.
If you want to find out how wealth managers
can effectively tap into the retiree market,
have a look at our latest wealth reports,
and that's one of the opportunities
that we're deep diving on.
(upbeat bouncy music fading)