Wealth Management Industry in U.S. - Changing Trends, Opportunities, & Strategies

  • ID: 1290408
  • August 2010
  • Region: United States
  • 84 Pages
  • Markets and Markets
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The recent economic crisis significantly decreased client trust in wealth management firms, resulting in a shift toward personalized services and safer products such as fixed income securities. However, the mass affluent offer the wealth management industry high growth opportunities. In the U.S., this segment has around 33 million individuals, representing around 43% of the country's investable assets. However, only 18% of the mass affluent are estimated to have availed financial planning services.

Over half of the baby boomer population (those born between 1945-1965) is included in the mass affluent segment. Having accumulated significant wealth, this population is expected to require financial advice for retirement planning in the coming decade, presenting further opportunities for wealth management firms.

Firms are opting for new operational models in order to recover losses and compete effectively in the changing scenario. They are increasingly forming consolidations and focusing on client relationship management to retain clients and attract new assets. The retainer fee pricing strategy has also caught up, replacing the traditional transaction fee based model.


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Executive Summary

1 Introduction
1.1 Report Catalyst
1.2 Report Structure

2 Strategy Formulation
2.1 Market Structure
2.2 Market Sizing And Segmentation
2.2.1 Global And U.S. Wealth
2.2.2 Segmentation Of U.S. Households By Wealth
2.3 Market Share Analysis , By Private Client Assets
2.4 Market Share Analysis, By Types Of Wealth Management Firms
2.4.1 Wirehouses Market Share Analysis Of Wirehouse Firms
2.4.2 Ria Custodians
2.4.3 Self-Clearing Retail Brokerage
2.4.4 Fully-Disclosed Retail Brokerage
2.4.5 Online Brokerage
2.4.6 Comparison Of Firms By Client Assets
2.5 Wealth Management – Mass Affluent Segment
2.5.1 Financial Institutions Targeting Mass Affluent Segment
2.5.2 Strategies To Attract Mass Affluent Segment
2.5.3 Winning Model To Tap Mass Affluent Segment
2.5.4 Mass Affluent And Baby Boomer Retirement Planning Increasing Share Of Baby Boomers Population The Challenges In Targeting Baby Boomers
2.6 Change In Wealth Management Practices Post Financial Crises
2.6.1 Change In Client Behavior & Patterns Post Crisis Clients Are Dissatisfied With Current Advisors Clients Shifting Preference To Safer Products, Forgoing Margins
2.6.2 Change In Customer Offerings
2.6.3 Increased Focus On Crm
2.6.4 Advisors Moving From Wirehouse To Ria
2.6.5 Tightened Government Regulations
2.6.6 Change In Operational Model
2.6.7 Change In Technology Outsourcing Integration/Aggregation
2.6.8 Transition To Fee Based Approach

3 Case Studies
3.1 Case Study: Hilliard Lyon
3.1.1 Objectives About Hilliard Lyon About Sungard Data Systems Inc.
3.1.2 Challenges Faced By Hilliard Lyon
3.1.3 Overcoming The Challenges
3.1.4 Outcome Of Implementing Sungard'S Wealthstation
3.1.5 Conclusion
3.2 Case Study: Northstar Systems International
3.2.1 Objectives About Northstar Systems International About The Client
3.2.2 Challenges Faced By Client
3.2.3 Overcoming The Challenges
3.2.4 Outcomes To The Client
3.2.5 Conclusion

4 Vendor Analysis And Profiling
4.1 Vendor Benchmarking
4.1.1 Functional Benchmarking
4.1.2 Tactical Benchmarking
4.1.3 Benchmarking By Customer Segments Covered
4.1.4 Wealth Management Vendor Ranking
4.2 Vendor Profiling
4.2.1 Adviceamerica Products And Services Recent Developments
4.2.2 Advent Software Products Offerings And Services Recent Developments
4.2.3 Investedge Products And Services Recent Developments
4.2.4 Northstar System International Products And Services Recent Developments
4.2.5 Sungard Data Systems Inc. Products And Services Recent Developments
4.2.6 Thomson Reuters Products And Services Recent Developments
4.2.7 Xeye (Odyssey Group) Products And Services Recent Developments


List Of Tables:

Table 1 Financial Institutions Catering To Mass Affluent Segment
Table 2 Profit Share Of Various Product Categories ($ Billion)
Table 3 Baby Boomers Share In Total U.S. Population (2010 – 2030)
Table 4 Functional Benchmarking Of Wealth Management Solution Providers
Table 5 Benchmarking Wealth Management Vendors, By Customer Segments Served
Table 6 Market Share And Aum On The Basis Of Private Client Assets (2009)
Table 7 Market Share And Aum On The Basis Of Private Client Assets (2008)

List Of Figures:

Figure 1 Wealth Management Market Structure
Figure 2 Wealth And Population Distribution Of U.S. Households (2009)
Figure 3 High Networth Individuals And Wealth (2005-2013)
Figure 4 Market Share Analysis Of Top Players (2008-2009)
Figure 5 Market Shares Of Wealth Management Industry Segments, By Client Assets (2009)
Figure 6 Market Shares Of Top Wirehouse Firms (2009)
Figure 7 Market Share Of Ria Custodian Firms (2009)
Figure 8 Client Assets Of Top Firms In Self-Clearing Retail Brokerage (2007 – 2009)
Figure 9 Market Shares Of Self-Clearing Retail Brokerage, By Client Assets And Number Of Advisors (2009)
Figure 10 Market Shares Of Top Online Brokerage Firms, By Client Assets (2007 To 2009)
Figure 11 Changing Share Of Industry Segments (2008 To 2009)
Figure 12 Client Assets And Number Of Financial Advisors (2009)
Figure 13 Total Client Assets By Types Of Wealth Management Firms (2007 – 2009)
Figure 14 Distribution Of Wealthy Households And Their Respective Wealth (2009)
Figure 15 Firms Targeting Mass Affluent Segment
Figure 16 Accumulation And Distribution Of Baby Boomer Assets
Figure 17 Customer Survey: Preparedness Of Wealth Management Firms To Handle Influx Of Retiree Assets (2009)
Figure 18 Customer Survey: A Comprehensive Plan Addressing Lifetime Goals (2009)
Figure 19 Customer Survey: Indicating Wealth Management Firms' Focus On Relationship Management (2009)
Figure 20 Customer Survey: Wealth Management Firms' Satisfaction With Current Tools To Serve Clients (2009)
Figure 21 Shifting Client Focus Towards Safer And Traditional Products
Figure 22 Assets Invested In Wealth Management Products (2007-2008)
Figure 23 Client Satisfaction Index Of Wealthy Households
Figure 24 Change In Wealth Management Advisors' Headcount (2004 – 2008)
Figure 25 Comparison Of Top Business Objectives Of Wealth Management Firms (2009 And 2011)
Figure 26 Preferred Use Of Crm For Various Operations
Figure 27 Demand For Various Wealth Management Solutions (2007 – 2009)
Figure 28 Comparison Of Various Vendors On Strategic Aspects
Figure 29 Ranking Of Vendors Offering Wealth Management Solutions

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