In this issue of Peak Wealth, we take a look at some of the big trends affecting private banking and wealth management, and what that might mean a decade from now.
Some trends are familiar. Nicola Churchouse considers what effect that high-flying world of fintech will have on the much more discrete and closed off world of family offices. Others are less obvious but certainly startling. Richard Lord takes an in-depth look at the growing world of alldigital banks. They can be found in China, where large tech players are keen to move further into finance, as well as emerging markets like Vietnam, where small players are having an outsized impact.
Of course, the world’s biggest economic story is the rise of China. In all areas of business activity, China’s companies have demonstrated nerve and ambition. But up until now, private banking and wealth management have largely been the preserve of Swiss, British and American banks. But as Devanshi Bhatnagar finds, China’s banks are keen to add this business to their roster of services, both as China’s own wealth develops, and as a way to reach out to the larger world. By 2027, could we see European clients looking to Chinese private banks for wealth management?
One of the big trends over the last eight or nine years has been the drive to open up so-called “tax havens” – legal jurisdictions that allowed extreme discretion in ownership and tax structures. Western governments, stung by the effects of the global financial crisis and PR disasters like the Panama Papers, undertook to open the books on such countries with information sharing and reporting standards. So what does the future hold for the tax haven?
No discussion about wealth can go on without looking at the ever-present issue of asset allocation. For some, it’s the coolest part of wealth management. Nicky Burridge talks to some investment analysts and gets their views on where the smart money goes when considering a ten-year investment timeline. Technology of course is important, but on this timeline, so is demographics.
Finally, succession planning is always a big issue for families. Christy Choi tackles this subject from a new angle: what is the best type of job to groom a business successor? Numerous third and fourth generation kids are trying their hand at running start-ups, rather than a stint in an investment bank. Is it better? Christy gets to the heart of the matter in discussion with three veteran entrepeneurs.
The twin trends of wealth creation in new markets and the onset of digital technology make it harder than ever to peer into the future. And yet, it’s all the more important to try.