Latest news with #MichaelKahlich
Business Times
12 hours ago
- Business
- Business Times
Swiss losing ground faster to Asian rivals in wealth, BCG says
[ZURICH] Switzerland is facing a stiffer challenge to its position as the world's top wealth management centre from Asian rivals, according to a Boston Consulting Group (BCG) report. Assets last year increased by 6 per cent to US$2.7 trillion, compared with a 9.6 per cent gain at main competitor Hong Kong, which is fast closing in on its Swiss rival, according to BCG's Global Wealth Report published on Tuesday (Jun 24). Singapore and the United Arab Emirates recorded the strongest growth in assets, at 11.9 per cent and 11.1 per cent respectively. The report pointed to increased macroeconomic uncertainty, pushing up money flows across borders. It also comes amid a rising chorus of voices warning that European financial players, and Switzerland in particular, risk falling behind global rivals due to increased regulation. The Swiss government kicked off a broad revamp of financial regulation in the wake of the collapse of Credit Suisse in 2023, which includes more powers for the watchdog Finma as well as sharply higher capital requirements for the country's biggest bank, UBS Group. Still, the nation's reputation as a safe haven has been dented – evidenced by the stance of major investors such as Saudi Arabia's Public Investment Fund. The fund said in May that it would not invest further in Switzerland. Wealthy Swiss residents have also threatened to move away over a looming vote which could tax half of any passed-on wealth above 50 million Swiss francs (S$79 million). 'Investors increasingly use safe havens abroad in turbulent phases,' said Michael Kahlich, a BCG partner and co-author of the study. 'This is particularly true for the very wealthy clients of asset managers.' Global net wealth in 2024 went up by 4 per cent, mostly driven by growth in North America, and parts of Asia and the Middle East, according to the BCG report. BLOOMBERG
Malaysian Reserve
17 hours ago
- Business
- Malaysian Reserve
Organic Growth Will Be a Defining Advantage as Financial Wealth Hits Record-High $305 Trillion
BOSTON, June 24, 2025 /PRNewswire/ — Global financial wealth surged to a record $305 trillion in 2024, propelled by an 8.1% rise in financial assets amid strong equity market performance. Yet beneath this headline growth, the industry's underlying engine, namely organic expansion, needs renewed strategic focus. New proprietary analysis by Boston Consulting Group (BCG) reveals that just 28% of wealth manager asset growth over the past decade came from existing advisors, falling to 22% in mature markets. Instead, firms leaned heavily on external levers such as M&A, market performance, and advisor recruitment—all of which can no longer be relied on to increase revenue. 'What defines winners today is no longer exposure to market performance or the ability to poach senior bankers, but their ability to grow from within,' said Michael Kahlich, managing director and partner at BCG. 'Firms that deliberately invest in advisor enablement, brand identity, and next-gen client strategies are outperforming peers—not just in revenue, but also in valuation multiples.' These are among the key findings of BCG's Global Wealth Report 2025: Rethinking the Rules for Growth: Asia-Pacific is poised to lead wealth creation, with projected financial wealth growth of 9% compounded annual growth rate (CAGR) through 2029—outpacing North America (4%) and Western Europe (5%). Cross-border wealth surged by 8.7%, reaching $14.4 trillion in 2024. This is an acceleration over the prior four-year average annual growth of 6.3%, given increasing demand for geographic diversification and safe havens. Singapore (11.9% growth) and the UAE (11.1%) emerged as standout booking centers, with Switzerland, Hong Kong, and Singapore expected to absorb two-thirds of all new cross-border wealth by 2029. Wealth management assets under management (AuM) expanded by 13% in 2024, significantly faster than overall financial wealth (8.1%), yet revenue growth lagged at 7.1%, as many firms saw falling margins on the back of a changing rate environment. Universal banks outpaced pure-plays in organic growth, generating 32% of their AuM growth from existing advisors—double that of pure-play firms (15%) benefiting from structural advantages in lead generation. Firms are starting to deploy GenAI for prospecting, with some early movers reporting fivefold increases in lead generation and a doubling of conversion rates. Meanwhile, those integrating data-driven client retention systems saw up to 15% increases in product revenue and 20–30% boosts in productivity. Strategic Imperatives The report identifies four high-impact levers for firms looking to elevate their organic growth engines: Brand Differentiation: Building trust and relevance through clear identity and messaging while strengthening digital marketing GenAI-Driven Client Acquisition: Using agentic AI to identify high-potential prospects, build comprehensive profiles, and enable highly personal outreaches Data-Driven Recommendation Systems: By integrating data across all business lines, wealth managers can build a comprehensive view full of signals about what a client might need next. Next-Gen Client Engagement: Personalizing the client journey for younger investors with digital-native expectations 'The rules of the game are shifting. Firms that embrace AI-enabled prospecting, personalized onboarding, and digital tools that boost productivity will be the ones to capture the next wave of growth,' said Daniel Kessler, managing director and senior partner at BCG and co-author of the report. 'Wealth is being created globally, but the challenge for wealth managers will be to capture it.' Download a copy of the report here: Media Contacts:Eric Gregoire+1 617 850 About Boston Consulting GroupBoston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders—empowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact. Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place.
Yahoo
19 hours ago
- Business
- Yahoo
Organic Growth Will Be a Defining Advantage as Financial Wealth Hits Record-High $305 Trillion
BOSTON, June 24, 2025 /PRNewswire/ -- Global financial wealth surged to a record $305 trillion in 2024, propelled by an 8.1% rise in financial assets amid strong equity market performance. Yet beneath this headline growth, the industry's underlying engine, namely organic expansion, needs renewed strategic focus. New proprietary analysis by Boston Consulting Group (BCG) reveals that just 28% of wealth manager asset growth over the past decade came from existing advisors, falling to 22% in mature markets. Instead, firms leaned heavily on external levers such as M&A, market performance, and advisor recruitment—all of which can no longer be relied on to increase revenue. "What defines winners today is no longer exposure to market performance or the ability to poach senior bankers, but their ability to grow from within," said Michael Kahlich, managing director and partner at BCG. "Firms that deliberately invest in advisor enablement, brand identity, and next-gen client strategies are outperforming peers—not just in revenue, but also in valuation multiples." These are among the key findings of BCG's Global Wealth Report 2025: Rethinking the Rules for Growth: Asia-Pacific is poised to lead wealth creation, with projected financial wealth growth of 9% compounded annual growth rate (CAGR) through 2029—outpacing North America (4%) and Western Europe (5%). Cross-border wealth surged by 8.7%, reaching $14.4 trillion in 2024. This is an acceleration over the prior four-year average annual growth of 6.3%, given increasing demand for geographic diversification and safe havens. Singapore (11.9% growth) and the UAE (11.1%) emerged as standout booking centers, with Switzerland, Hong Kong, and Singapore expected to absorb two-thirds of all new cross-border wealth by 2029. Wealth management assets under management (AuM) expanded by 13% in 2024, significantly faster than overall financial wealth (8.1%), yet revenue growth lagged at 7.1%, as many firms saw falling margins on the back of a changing rate environment. Universal banks outpaced pure-plays in organic growth, generating 32% of their AuM growth from existing advisors—double that of pure-play firms (15%) benefiting from structural advantages in lead generation. Firms are starting to deploy GenAI for prospecting, with some early movers reporting fivefold increases in lead generation and a doubling of conversion rates. Meanwhile, those integrating data-driven client retention systems saw up to 15% increases in product revenue and 20–30% boosts in productivity. Strategic Imperatives The report identifies four high-impact levers for firms looking to elevate their organic growth engines: Brand Differentiation: Building trust and relevance through clear identity and messaging while strengthening digital marketing GenAI-Driven Client Acquisition: Using agentic AI to identify high-potential prospects, build comprehensive profiles, and enable highly personal outreaches Data-Driven Recommendation Systems: By integrating data across all business lines, wealth managers can build a comprehensive view full of signals about what a client might need next. Next-Gen Client Engagement: Personalizing the client journey for younger investors with digital-native expectations "The rules of the game are shifting. Firms that embrace AI-enabled prospecting, personalized onboarding, and digital tools that boost productivity will be the ones to capture the next wave of growth," said Daniel Kessler, managing director and senior partner at BCG and co-author of the report. "Wealth is being created globally, but the challenge for wealth managers will be to capture it." Download a copy of the report here: Media Contacts:Eric Gregoire+1 617 850 About Boston Consulting GroupBoston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders—empowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact. Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place. View original content to download multimedia: SOURCE Boston Consulting Group (BCG)
Yahoo
19 hours ago
- Business
- Yahoo
Organic Growth Will Be a Defining Advantage as Financial Wealth Hits Record-High $305 Trillion
BOSTON, June 24, 2025 /PRNewswire/ -- Global financial wealth surged to a record $305 trillion in 2024, propelled by an 8.1% rise in financial assets amid strong equity market performance. Yet beneath this headline growth, the industry's underlying engine, namely organic expansion, needs renewed strategic focus. New proprietary analysis by Boston Consulting Group (BCG) reveals that just 28% of wealth manager asset growth over the past decade came from existing advisors, falling to 22% in mature markets. Instead, firms leaned heavily on external levers such as M&A, market performance, and advisor recruitment—all of which can no longer be relied on to increase revenue. "What defines winners today is no longer exposure to market performance or the ability to poach senior bankers, but their ability to grow from within," said Michael Kahlich, managing director and partner at BCG. "Firms that deliberately invest in advisor enablement, brand identity, and next-gen client strategies are outperforming peers—not just in revenue, but also in valuation multiples." These are among the key findings of BCG's Global Wealth Report 2025: Rethinking the Rules for Growth: Asia-Pacific is poised to lead wealth creation, with projected financial wealth growth of 9% compounded annual growth rate (CAGR) through 2029—outpacing North America (4%) and Western Europe (5%). Cross-border wealth surged by 8.7%, reaching $14.4 trillion in 2024. This is an acceleration over the prior four-year average annual growth of 6.3%, given increasing demand for geographic diversification and safe havens. Singapore (11.9% growth) and the UAE (11.1%) emerged as standout booking centers, with Switzerland, Hong Kong, and Singapore expected to absorb two-thirds of all new cross-border wealth by 2029. Wealth management assets under management (AuM) expanded by 13% in 2024, significantly faster than overall financial wealth (8.1%), yet revenue growth lagged at 7.1%, as many firms saw falling margins on the back of a changing rate environment. Universal banks outpaced pure-plays in organic growth, generating 32% of their AuM growth from existing advisors—double that of pure-play firms (15%) benefiting from structural advantages in lead generation. Firms are starting to deploy GenAI for prospecting, with some early movers reporting fivefold increases in lead generation and a doubling of conversion rates. Meanwhile, those integrating data-driven client retention systems saw up to 15% increases in product revenue and 20–30% boosts in productivity. Strategic Imperatives The report identifies four high-impact levers for firms looking to elevate their organic growth engines: Brand Differentiation: Building trust and relevance through clear identity and messaging while strengthening digital marketing GenAI-Driven Client Acquisition: Using agentic AI to identify high-potential prospects, build comprehensive profiles, and enable highly personal outreaches Data-Driven Recommendation Systems: By integrating data across all business lines, wealth managers can build a comprehensive view full of signals about what a client might need next. Next-Gen Client Engagement: Personalizing the client journey for younger investors with digital-native expectations "The rules of the game are shifting. Firms that embrace AI-enabled prospecting, personalized onboarding, and digital tools that boost productivity will be the ones to capture the next wave of growth," said Daniel Kessler, managing director and senior partner at BCG and co-author of the report. "Wealth is being created globally, but the challenge for wealth managers will be to capture it." Download a copy of the report here: Media Contacts:Eric Gregoire+1 617 850 About Boston Consulting GroupBoston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders—empowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact. Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place. View original content to download multimedia: SOURCE Boston Consulting Group (BCG)
