This archive report was first published on 9 July 2019.
On July 9, 2019, Capgemini published the World Wealth Report 2019, revealing a decline in global high net worth individual (HNWI) wealth by 3% in 2018.
The decline, which resulted in a loss of 2 trillion USD worldwide, was largely due to a drop in wealth in the Asia-Pacific region, specifically in China.
Despite this decline, wealth management firms maintained stable levels of customer trust and satisfaction throughout the year, with better personal relationships remaining key for enhanced performance.
The report found that the Asia-Pacific region was hit the hardest, with a 5% decline in HNWI wealth and a 2% decrease in HNWI population.
China alone was responsible for more than half (53%) of Asia-Pacific and more than 25% of global HNWI wealth loss.
Meanwhile, HNWI wealth declined across nearly all other regions, with Latin America declining by 4%, Europe by 3%, and North America by 1%.
However, the Middle East bucked the trend, generating 4% growth in HNWI wealth and increasing its HNWI population by 6% due to strong GDP growth and financial market performance.
According to the report, the ultra-HNWI population declined by 4%, and their wealth declined by around 6%, accounting for 75% of the total global wealth decrease.
Asset allocations shifted significantly, with cash replacing equities to become the most held asset class in Q1 2019, representing 28% of HNWI financial wealth.
Despite declining wealth, HNWI's year-over-year trust and satisfaction in wealth management firms increased by 3 percentage points over already high levels.
However, the report revealed significant opportunity for wealth firms to proactively address rising HNWI expectations, as an unsatisfactory service experience was the biggest reason for HNWIs to switch firms in 2018.
According to Anirban Bose, CEO of Capgemini's Financial Services and Member of the Group Executive Board, future success will depend on the agility of wealth management firms to evolve the client experience and find new ways to add value through more personalized services.
