Contributor: Chris Jones
Hundreds of senior wealth management and trust executives recently gathered at the 2010 ABA Wealth Management and Trust Conference in Phoenix Arizona to discuss the strategies needed to help their firms meet top line goals and better manage new regulations.
In short, everyone is asking, “Is good news on the horizon?” Much has been said about how wealth management and trust businesses have helped sustain many banking companies during the recent economic downturn. Some institutions even say they are reorganizing around three or four core divisions in which the wealth management and trust will be featured prominently. Three common-themed questions came up over and over during the conference:
- What are the emerging drivers for the wealth management and trust business?
- What sets one platform apart from another?
- What will be the differentiating factors that will separate winners from losers?
Industry consultant, Tiburon Strategic Advisors, chaired a panel discussion with two leading banking analysts focusing on answers to these and other critical questions facing the industry today. Three key strategies were put forth during this session to help wealth management and trust organizations better perform in 2010:
Switch to offense – With the recent turmoil in the banking market, many clients have been underserved or ignored completely. Banks need to focus more on client referrals and increase efforts in target and niche marketing.
Move with the new market realities – Times have changed over the past 18 months and investments strategies have followed suit. Transparent, low cost, guaranteed products are in high demand. Organizations might want to consider low cost indexing and exchange traded funds (ETFs) or guaranteed funds when updating investment strategies.
Switch talent focus to acquisitions – By considering the acquisition of a large RIA, for example, an organization can benefit from the investment management and financial planning capabilities many bring to bear. There is still a pool of experienced talent left from the recent bank and wirehouse consolidations that can help bolster trust or wealth management firms.
What do you see as the biggest challenges facing trust and wealth management organizations in 2010? How is your firm managing these challenges?
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April 26th, 2010 at 12:48 am
Good Article. Though I see the greatest expansion is shifting toward the asian markets.
April 28th, 2010 at 2:39 pm
I certainly agree with your assessment regarding the expansion into the Asian markets. Many estimates show that by 2013, Asia Pacific will overtake North America as the largest region for financial wealth. In China, for example, financial institutions like Bank of America and J.P. Morgan Chase are working towards expanding their operations in this fast-growing economy. Businesses looking to tap into these new pools of wealth would do well to partner with a firm with a global presence and the ability to identify and capitalize on these opportunities.