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D. Murali
C. Ramesh

Chennai June 26 Wealth managers and private banks are anticipating unprecedented growth over the next three years, according to the latest findings from the PricewaterhouseCoopers 2007 Global Private Banking/Wealth Management Survey, with CEOs predicting that on an average, their assets under management will grow 30 per cent annually.

According to the survey, which ascertained the views of senior executives of 265 organisations within the global private banking and wealth management industry, markets in the Asia-Pacific region and Eastern Europe are expanding the fastest, as organisations rush to service the new wealth creators in these regions.

The study also revealed the commitment among wealth managers to increase `share of wallet,' compared to previous surveys.

Share of wallet has emerged as the new key performance indicator, globally as well as in emerging economies like India, as wealth managers seek to become trusted advisers and gain new clients.

Mr Jairaj Purandare, Executive Director, PricewaterhouseCoopers India, said: "The greater the share of wallet the more institutionalised the client becomes, leading to increased loyalty and making it more difficult for the client to leave. More fundamentally, this is an excellent source of new assets, revenue and increased profitability."

According to the survey, almost 90 per cent of CEOs are of the view that there will be at least some, if not significant, consolidation in the industry; and more than 50 per cent of them plan to open operations in new countries over the next two years.

Growth targets

It also said that the key to wealth managers achieving their aggressive growth targets is their ability to recruit and retain quality client relationship managers (CRMs).

Mr Purandare said: "Wealth managers in India need to get serious about human resources and talent management must be on the main board's agenda. Retaining and recruiting new CRMs is critical to success. Improving CRMs' skills and capabilities is essential for meeting clients' needs."

Mr Bruce Weatherill, Global Private Banking/Wealth Management Leader, PricewaterhouseCoopers, who led the survey, said that the time has come when strategic choices have to be made and finite resources have to be focused on serving existing clients as well as supporting highly ambitious growth plans.

"A particular strategic issue is how to respond to the fast emergence of wealth management in developing countries, which presents huge opportunities," he said in the report.

The survey is designed to help wealth managers benchmark their organisations against the competition and to provide a useful context for decision-making, he added.

"Reflecting the accelerating wealth of developing economies, it is notable that we have more respondents from countries such as Brazil, India, Singapore and Central/Eastern European nations than ever before."

The survey is split into seven sections: CEOs' views, markets and clients, systems and processes, profitability and performance metrics, human resources, client relationship managers and risk management and compliance.

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