The Case for Providing Liability Management to the Wealthy

[Amy Cole]

I enclose details of our latest wealth management report.   
   
Wealth managers have traditionally focused on the asset side of their clients financial position, leaving lending to the retail banks. However, wealth management is becoming increasing competitive, leading some innovative wealth managers to build a proposition around liability management. The result is increased revenues, share of wallet and customer base growth.   
   
Scope of this title:   
- The report draws on the results of our Wealth Management Market Leaders Survey, including responses of 88 European wealth managers   
- Extensive research on wealth managers, both in the US and Europe, to determine the extent to which lending products are marketed to high net worths   
- In-depths interviews were carried out with European wealth managers that have already implemented lending as part of their service offering   
   
Highlights of this title:   
- European wealth managers surveyed do not see strong potential in lending business, despite success in US and Australia. Few of them focus resources on mortgages, margin lending and similar products in the next two years.   
- Only a handful of firms are capitalizing on opportunities in lending, among them large financial groups such as Barclays, Credit Suisse, HSBC, Merrill Lynch and UBS. They see lending as key part of a holistic wealth management approach that aims to cover all aspects of client needs.   
- Despite not being part of the wealth management agenda in many markets, lending to the wealthy has strong potential. Industry experts believe that lending as part of a holistic wealth management approach is the way forward and can help to increase both customer base and share of wallet.   
   
Reasons to order your copy:   
- Assesses a very lucrative and underserved business segment that you can exploit   
- Identifies innovations in high net worth lending that can be adopted to fit your business model   
- Presents key conclusions and expert insights to help you decide whether high net worth lending is right for you   
   
For a complete index of this report click on:   
http://www.researchandmarkets.com/product/68770e/the_case_for_providing_liability_management   
   
Report Index:   
   
EXECUTIVE SUMMARY    
Introduction    
Lending to the wealthy    
Markets and competitors    
Why offer liability management?    
   
Chapter 1   
Lending to the wealthy    
Introduction    
Key findings    
Wealth managers seek to broaden their product and service offering but only a few see opportunity in lending    
Wealth managers think new clients and increasing share of wallet will drive revenue    
Lending is not seen as effective means of gaining bigger share of wallet    
Wealth managers think their clients have no interest in financing solutions    
Wealth managers do not see strong potential in lending business    
Only a few wealth managers will focus resources on margin lending in the next two years    
   
Chapter 2   
Markets and competitors    
Introduction    
Key findings    
Liability management is about to become an important part of wealth management    
Only a handful of firms are capitalizing on opportunities in lending    
Wealth managers have started to offer innovative lending products and services    
Barclays    
Credit Suisse    
HSBC    
Merrill Lynch    
UBS    
   
Chapter 3   
Why offer liability management?    
Introduction    
Key findings    
Despite not being part of the wealth management agenda in many markets, lending to the wealthy has strong potential    
Specialist forms of lending, such as margin loans, can relatively easily be added to a wealth managers service offering    
Wealth managers that offer lending have the opportunity to build long-term relationships with their clients    
Industry experts believe that lending as part of a holistic wealth management approach is the way forward    
Financial results reflect increased interest in lending among wealthy clients    
Lending is part of a holistic approach that seeks to deepen client relationships    
A holistic wealth management approach is more than just assets and liabilities    
The key to differentiation from lending competitors is service and flexibility    
There is increasing demand for lending products from wealthy individuals    
Offering liability management is an effective means to increase the client base    
Wealth managers that do not offer liability management will lose clients    
   
APPENDIX    
Supplementary data    
Definitions    
High net worth (HNW)    
Liquid assets    
Liquid asset bands    
Mass affluent    
Further reading    
Global Wealth Management SPP   
Interactive Databases    
Market Reports    
   
List of Tables   
Table 1: Simplified example of how margin (Lombard) lending works¹    
Table 2: What will most determine revenue growth in your market in the next two years?    
Table 3: Please rate the following product areas in terms of their business potential among wealthy clients in your market during the next two years    
Table 4: From the product areas just mentioned, which three will your company focus most resources on in the next two years?    
Table 5: What is the most effective means of increasing share of wallet?    
Table 6: What are clients most interested today?    
Table 7: Wealth managers that offer lending products to private clients    
Table 8: Debts and mortgages in the US by size of net worth,    
   
List of Figures   
Figure 1: Obtaining new clients and increasing share of wallet will most determine revenue growth in the next two years    
Figure 2: Only 10% of respondents believe that focusing on the lending business is an effective means of increasing share of wallet    
Figure 3: Wealth managers believe that only a few clients are interested in financing solutions such as mortgages and margin lending    
Figure 4: Lending products are perceived to have less business potential    
Figure 5: Only few wealth managers will focus on margin lending in the next two years    
Figure 6: On a global scale, there are only a few firms actively promoting and developing their liability management business    
Figure 7: Barclays approach to a complete wealth management service includes banking, investment and credit    
Figure 8: Credit Suisse offers different types of Lombard loans to satisfy individual needs    
Figure 9: HSBCs Property Vision: specialist advisory service to wealthy clients interested in residential property in the UK    
Figure 10: Merrill Lynchs approach to complete wealth management consists of eight key interlinked elements    
Figure 11: UBS private financing solution: The client decides how to use the short-term loan component    
Figure 12: An increasing number of HNWs are attracted by holistic wealth management that includes their assets as well as liabilities    
Figure 13: Wealth managers that do not add lending to their service offering will lose clients and fail to attract new ones   
   
Pricing:   
   
Electronic : EUR 2991   
Site License : EUR 3290   
Enterprisewide : EUR 5981   
   
Ordering - Three easy ways to place your order:   
   
1] Order online at http://www.researchandmarkets.com/product/68770e/the_case_for_providing_liability_management   
   
2] Order by fax: Print an Order form from http://www.researchandmarkets.com/product/68770e/the_case_for_providing_liability_management and Fax to +353 1 4100 980   
   
3] Order by mail: Print an Order form from http://www.researchandmarkets.com/product/68770e/the_case_for_providing_liability_management and post to Research and Markets Ltd. Guinness Center, Taylors Lane, Dublin 8. Ireland   
   
Thank you for your consideration.   
Best Regards,   
   
Amy Cole
   
Senior Manager
   
Research and Markets Ltd
   
amy.cole na researchandmarkets.com   
   
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