ambMany wealth managers are only marginally profitable, and a lot of wealth businesses appear to make more money than they actually do. That’s because they are effectively subsidized, using the assets and infrastructures of other parts of their parent companies without paying the full cost. Financial institutions often underperform in wealth management for five reasons. First, they don’t have a clear picture of their own economic performance and how it varies by customer segment. Because they segment their customers poorly, they fail to target those customers that genuinely fit their business models. Second, many financial institutions’ wealth offerings are subscale and need more customers and assets to be truly profitable. Third, wealthy investors aren’t always the dream customers they might seem. They often drive a hard bargain, negotiating lower fees and demanding more services. Fourth, financial institutions today find themselves…
awirbsCORPORATE FAILURES may be increasing globally and the fortunes of dotcom entrepreneurs may be vanishing faster than it takes to utter the words “initial public offering” on Nasdaq, but neither economic recession nor the bursting of the technology bubble is going to halt the rising tide of affluent and newly wealthy individuals in Europe, the US and elsewhere, according to business forecasters. Obituaries of the so-called mass affluent are simply fanciful, along with the reported demise of the wealth management industry that is springing up to serve this expanding segment of the population. True, the industry has seen some casualties among the specialist financial firms and bank subsidiaries that have struggled to find the right mix of services for this potentially lucrative segment. None are yet delivering a complete wealth management service that caters for all needs — that may…
Forget all those doom-and-gloom articles about BC being a have-not province. BC leads Canada in the only number that counts – we have the most millionaires per capita! bcIt’s time to banish once and for all Toronto’s CN-tower-as-centre-of-the-financial-universe condescending image of BCers as backwater hewer-of-wood hicks and Birkenstocked green-peaced-out hippies. Wake up and smell the stock options, you Yorkdale yokels – BC’s millionaires control 30 percent more provincial wealth than Ontario’s! And no jokes about BC’s top-rating in the bottom-line department being due entirely to our well-cached crop of BC Bud (or too much toking thereof). BC millionaires are an incredibly diverse bunch: hi-tech gameboys (Don “E=MyCash2 Arts” Mattrick), old-money sugar daddies (Stephen “Life is Sweet” Rogers), transplanted real-estate tycoons (Terry “Lil’ Ka-ching” Hui), ex-Olympian ski-hill moguls (Nancy “Gold-Grubber” Greene), media mini-magnates (David “No-Not-That” Black), conglomerated captains of industry (Jimmy…