WEBVTT 1 00:00:00.531 --> 00:00:04.730 line:15% (soft music) 2 00:00:04.730 --> 00:00:08.440 I have the great pleasure to announce the 21st edition 3 00:00:08.440 --> 00:00:11.000 of BCG's Global Wealth Report. 4 00:00:11.000 --> 00:00:13.730 After last year's CEO agenda, 5 00:00:13.730 --> 00:00:17.510 this year we are putting the clients at the forefront. 6 00:00:17.510 --> 00:00:20.650 We start by detailing the evolution of wealth, 7 00:00:20.650 --> 00:00:24.030 to then deep dive into the simple needs segment, 8 00:00:24.030 --> 00:00:27.790 the new ultras, and finally the retirees. 9 00:00:27.790 --> 00:00:31.780 Along with uncovering the key dynamics behind each topic, 10 00:00:31.780 --> 00:00:33.930 we also provide tangible actions 11 00:00:33.930 --> 00:00:37.970 that wealth managers can pursue to effectively seize 12 00:00:37.970 --> 00:00:39.705 all these opportunities. 13 00:00:39.705 --> 00:00:43.780 (upbeat bouncy music) 14 00:00:43.780 --> 00:00:47.280 Against expectations, global financial wealth kept growing 15 00:00:47.280 --> 00:00:50.420 during 2020, reaching an all-time high 16 00:00:50.420 --> 00:00:53.510 of US$250 trillion 17 00:00:53.510 --> 00:00:55.380 thanks to two drivers- 18 00:00:55.380 --> 00:00:59.110 a boom in savings and a stock market effect. 19 00:00:59.110 --> 00:01:02.110 This year, we have added a new lens 20 00:01:02.110 --> 00:01:04.430 and a new perspective to wealth. 21 00:01:04.430 --> 00:01:08.970 We are incorporating real assets and liabilities. 22 00:01:08.970 --> 00:01:11.220 This is leading to a total wealth pool 23 00:01:11.220 --> 00:01:14.981 of US$538 trillion globally. 24 00:01:14.981 --> 00:01:19.200 (upbeat bouncy music) 25 00:01:19.200 --> 00:01:22.070 Wealth managers are staring at a large market 26 00:01:22.070 --> 00:01:25.810 made of individuals with noncomplex investment needs 27 00:01:25.810 --> 00:01:27.810 and limited financial knowledge, 28 00:01:27.810 --> 00:01:30.710 whose net wealth is between a $100,000 29 00:01:30.710 --> 00:01:32.320 and $3 million. 30 00:01:32.320 --> 00:01:34.620 Successfully serving this segment 31 00:01:34.620 --> 00:01:38.360 requires a new digital wealth management model 32 00:01:38.360 --> 00:01:40.170 to reach a mass audience 33 00:01:40.170 --> 00:01:42.940 in a cost effective and scalable way, 34 00:01:42.940 --> 00:01:45.860 but with an offering that is highly customized 35 00:01:45.860 --> 00:01:47.530 to their needs. 36 00:01:47.530 --> 00:01:51.210 This bionic approach, combining the best of technology 37 00:01:51.210 --> 00:01:52.860 and the best of human, 38 00:01:52.860 --> 00:01:54.750 has five core elements. 39 00:01:54.750 --> 00:01:58.680 The first: a supercharged relationship manager. 40 00:01:58.680 --> 00:02:02.550 The second: contextual, consumable learning. 41 00:02:02.550 --> 00:02:07.180 Third: democratized access to "haute" investments. 42 00:02:07.180 --> 00:02:11.060 Fourth: smarter use and experience design. 43 00:02:11.060 --> 00:02:12.830 And last but not least, 44 00:02:12.830 --> 00:02:15.782 truly simplified and new pricing models. 45 00:02:15.782 --> 00:02:18.330 (upbeat bouncy music) 46 00:02:18.330 --> 00:02:19.163 More than 6,000 people worldwide 47 00:02:19.163 --> 00:02:19.996 became ultra high net worths, 48 00:02:24.124 --> 00:02:27.360 that have reached a $100 million in investable wealth 49 00:02:27.360 --> 00:02:31.430 or more for the first time in 2020. 50 00:02:31.430 --> 00:02:35.370 This led to a record of 60,000 individuals 51 00:02:35.370 --> 00:02:39.730 for a combined $22 trillion in assets. 52 00:02:39.730 --> 00:02:42.960 The faces, and consequently also the needs, 53 00:02:42.960 --> 00:02:45.340 of the new ultras are changing, 54 00:02:45.340 --> 00:02:49.340 leading to a heterogeneous ultra-high-net-worth bracket 55 00:02:49.340 --> 00:02:52.240 with many subsegments to serve. 56 00:02:52.240 --> 00:02:55.760 To be successful, wealth managers should avoid 57 00:02:55.760 --> 00:02:57.600 seven critical sins 58 00:02:57.600 --> 00:03:01.210 ranging from failing to segment these clients, 59 00:03:01.210 --> 00:03:04.061 to assuming next-generation loyalty. 60 00:03:04.061 --> 00:03:08.200 (upbeat bouncy music) 61 00:03:08.200 --> 00:03:12.860 Retirees are one of the fastest-growing populations. 62 00:03:12.860 --> 00:03:17.010 By 2050, one out of six individuals 63 00:03:17.010 --> 00:03:20.300 will be 65 years or older. 64 00:03:20.300 --> 00:03:24.340 That's twice the size of today's retiree population, 65 00:03:24.340 --> 00:03:27.890 and it represents an enormous wealth pool. 66 00:03:27.890 --> 00:03:32.480 Retirement comes with distinct evolving concerns, 67 00:03:32.480 --> 00:03:35.930 both financial-such as income stability 68 00:03:35.930 --> 00:03:37.990 and residual balance goals- 69 00:03:37.990 --> 00:03:42.350 and nonfinancial, typically around community, 70 00:03:42.350 --> 00:03:44.660 control, and purpose. 71 00:03:44.660 --> 00:03:48.070 Wealth managers partner most actively with clients 72 00:03:48.070 --> 00:03:50.000 in their accumulation phase. 73 00:03:50.000 --> 00:03:53.340 However, interactions very often wind down 74 00:03:53.340 --> 00:03:56.640 as clients reach their retirement stages. 75 00:03:56.640 --> 00:04:01.610 This leaves many retirees asset rich and advice poor 76 00:04:01.610 --> 00:04:06.290 at a time in their lives when their needs are most complex. 77 00:04:06.290 --> 00:04:08.670 If you want to find out how wealth managers 78 00:04:08.670 --> 00:04:12.761 can effectively tap into the retiree market, 79 00:04:12.761 --> 00:04:14.980 have a look at our latest wealth reports, 80 00:04:14.980 --> 00:04:18.150 and that's one of the opportunities 81 00:04:18.150 --> 00:04:19.971 that we're deep diving on. 82 00:04:19.971 --> 00:04:23.721 (upbeat bouncy music fading)