[pullquote]…there is $10 trillion in high-net worth bankable assets that haven’t been tapped.[/pullquote]
There has been a significant decrease in assets under management in the global wealth management industry since 2008. High-net worth clients have lost confidence with their bank and fled to other firms.
The wealth management industry needs to start regaining the confidence of these clients because there is plenty of opportunity for growth out there. According to Scorpio Partnership’s 2010 Global Private Banking study, “there is $10 trillion in high-net worth bankable assets that haven’t been tapped.”
Unfortunately, clients are extremely reluctant to move their assets into this industry because of its tarnished reputation. According to Sebastian Dovey, managing partner for Scorpio, states, “Significantly, our global HNW (high net worth) data shows there are strong signs of wealth creation even in these complex markets and yet new clients are still holding back from opening accounts with the industry.”
It seems the only companies that are capturing this untapped business are the top 10 companies. They control the majority of this industry even when some of these companies have a tarnished reputation as well. These companies include Bank of America, UBS and Morgan Stanley Smith Barney.