The Deloitte International Wealth Management Centre Ranking 2024
Seismic waves impacting leading financial centres
Since our previous edition in 2021, the COVID-19 pandemic has ended, and there has been a resurgence of inflation and increase in geopolitical tensions. Rising interest rates have played a significant role in wealth management, influencing investment strategies, portfolio performance and financial planning decisions. Several notable bank failures occurred concurrently, causing disruption in the wealth management businesses. These failures were mostly due to liquidity mismatches, mishandling of interest rate risks, and broader economic pressures. In such a dynamic and uncertain environment, international wealth management has a crucial role in protecting, preserving and growing client wealth.
As the world changes rapidly, so too must wealth managers. The improving macro environment for wealth generation in 2023 is driving growth levels back to the historical trend, after a setback in 2022. Moreover, the advent of new technologies, particularly generative AI, is opening up new possibilities. Technology-driven interactions between clients and banks are becoming the norm, necessitating costly investments in the digital transformation of business. Questions arise about whether these investments in differentiated propositions and partnerships are being spent wisely, and if they will lead to improved performance – or whether they are just table stakes.
To face these challenges and capture new pockets of growth, international wealth managers are prioritising innovative collaboration models with clients and local partners, more sophisticated product offerings, automation for efficiency, and robust yet flexible technological platforms.
This fifth edition of our ranking report focuses on three main questions:
- How has the competitiveness of each wealth management centre changed since 2021?
- How have the centres performed in terms of volume from international clients and growth?
- What are the business priorities of wealth managers and the capabilities they need to succeed in the future?
The future of global wealth management
The future of global wealth management is poised to be shaped by significant technological advancements, regulatory changes, geopolitical risks, and macroeconomic shifts. As wealth centres navigate these dynamics, countries like the UK and Hong Kong may face long-term challenges to their competitiveness, while Singapore and the US appear positioned to emerge as potential leaders. Switzerland, today’s leader, must focus on enhancing its regulatory frameworks and re-establish trust following the Credit Suisse debacle, and invest in digital transformation and optimising operational efficiencies, to defend its leading status in the global market.
