The World Wealth Report 2020 from Capgemini has found that High Net Worth Individual (HNWI) wealth and population grew by almost 9% globally in 2019 despite a global economic slowdown, international trade wars and geopolitical tensions. North America and Europe took the lead with around 11% and 9% growth respectively, surpassing Asia-Pacific (with 8%) for the first time in eight years.
The reports makes some interesting observations regarding the reasons for wealth growth in the last year. Whilst acknowledging that the global pandemic has brought unpredictability in 2020, the report notes that regional monetary policy accommodation and tech sector performance optimism has driven growth.
What is even more interesting is how the HNWI segment plans to adapt in 2020. There is a growing demand for sustainable investing, with Environmental, Social and Governance (ESG) investing on the rise. Uncertainty is also driving higher client expectations and scrutiny around advisory fees, with 33% of HNWIs uncomfortable with their fees.
What does this mean for the wealth management industry? The report suggests that to meet HNWI needs, firms should make the most of digital capabilities to provide hyper-personalised offerings and touchpoints.
Capgemini have published an overview of the World Wealth Report 2020 findings in the form of quick-read infographic.