Financial firms could lose more than half of their business if they do not keep up with the latest digital tools, according to Capgemini, a global financial consulting and Technology Company based in Paris.
Fifty-six percent of the average firms’ net income could be at risk due to client attrition if the firms’ technology is not up to date, according to the “2016 World Wealth Report” released Thursday by Capgemini.
At the same time, wealth managers are demanding more up-to-date digital tools at their companies. Fifty-five percent of the managers are not fully satisfied with their firm’s digital capabilities and 39 percent would even consider looking for employment elsewhere as a result, putting firms at risk of not only profit and client attrition, but employee attrition, too, the report says.
The survey included 5,200 high net worth individuals, 50 wealth management firms and 800 wealth managers.
The report also looked at where wealth is concentrated in the world. Global wealth among those with $1 million or more in assets has increased 4 percent since last year, but that is compared to a growth rate of 7.2 percent the previous year.
Wealth growth for that sector in the Asia-Pacific region, which increased by 10 percent, is driving the increase, Capgemini says. Asia-Pacific’s millionaires saw their wealth grow at almost five times North America’s 2 percent wealth growth in 2015. This is a marked decrease from the 9 percent growth rate in the United States for 2014 and was caused by the poor performance of U.S. and Canadian equities, Capgemini says.
Asia-Pacific will represent two-fifths of the world’s HNW individuals’ wealth within 10 years, more than that of Europe, Latin America, the Middle East and Africa combined, the report says.