Ongoing regulatory and cost pressures are changing the competitive face of Australias wealth market drastically and permanently, which makes it essential for industry participants to have robust strategies for building a stronger business. In this report Verdict Financial takes an in-depth look at the competitive scene in Australian wealth management.
Understand the market through analysis of different business models and how they derive income.
Analyze the current recruitment situation for private bankers and average salaries.
Interpret competitive trends in the market through a breakdown of M&A, organic growth and partnerships developments.
What business model is most prominent in the Australian wealth management industry?
How easy is it to recruit relationship managers and what are they paid?
What are foreign and domestic players doing to access the Australian affluent population?
What strategies are the competition employing to win and keep affluent clients?
Australias wealth market features a multitude of different types of players, but the countrys Big Four incumbent banks and AMP claim the bulk of the market share. As a result of heightened regulatory pressure, there has been an increased level of industry consolidation driven by recent mergers and acquisitions among smaller players in the market.
Increased regulatory pressure also led to subdued hiring activity in the wealth management space during 2012 and the beginning of 2013 as providers shifted their focus to the rollout and completion of Future of Financial Advice and MySuper projects.
Significant barriers to entry, such as fierce competition and the need for economies of scale, are deterring many potential competitors from establishing a presence in Australia.