Wealth managers face two major issues: complying with regulation and adjusting their business model to a changing investment culture. While managing people’s money is generally still profitable, firms need to reassess their strengths as deteriorating economic conditions, heavier banking regulation and client demand put pressure on margins.
And as established firms try to find a new identity and often need to justify their existence to customers, new and nimble players are seducing clients and gaining business from both the highly wealthy and the middle classes.
