SCORPIO PARTNERSHIP GLOBAL PRIVATE BANKING BENCHMARK 2015

The global wealth KPI source – in brief

The Scorpio Partnership Global Private Banking Benchmark 2015 is the latest industry wide key performance indicator assessment of the global wealth management sector from leading wealth management strategist, Scorpio Partnership.

The report provides a detailed industry analysis based on results from 203 private banks around the world who manage a total of USD16.4 trillion of client assets. The report estimates the total number of client assets managed by the industry is USD20.6 trillion. The report is compiled by an experienced team of consultants and analysts who are constantly engaged with the international private banking market. The report itself includes analysis of more than 18,000 data points on the private banking industry’s key performance indicators.

The Private Banking Benchmark 2015 is therefore essential reading for private banking management, private banking strategy teams and financial analysts as well as service providers to the private banking market including asset managers, investment banks, trust companies and specialist professionals such as lawyers, accountants and consultants.

Further information about the Global Private Banking Benchmark 2015

The Scorpio Partnership Global Private Banking Benchmark is the leading analysis of the international wealth management market from strategists Scorpio Partnership.

  • Orders received before 10th of July will be eligible for the early bird discount of 10%
  • Scorpio Partnership now receives orders directly through the website www.scorpiopartnership.com and easy payment via PayPal
  • Enterprise licence buyers will also receive extended data tables of NNM, cost income ratios and profits. The top 50 firms by AUM is included as standard in the report.

Global private banking benchmark 2015

For further details, content inquiries or to discuss the report in detail please contact:

James Horrax at +44 207 086 5205 or james@scorpiopartnership.com

 

Benchmark is the most authoritative narrative of global wealth

global private banking benchmark 2007 - 2015

 

 

Key findings from the Private Banking Benchmark 2015

Based on analysis of reported financials from over 200 wealth management business lines across the globe, this year’s worldwide ranking saw few changes among the top cohort. Aside from UBS and Morgan Stanley breaking through the USD2trn barrier, the majority of the market leaders remained in stasis.

Now in its 14th year, the influential annual Scorpio Partnership Private Banking Benchmark, estimates that the global industry now manages USD20.6 trillion in investable assets on behalf of high net worth investors. Amid this total industry AUM data point, the market share concentration among the largest houses is significant. The top 10 global operators in AUM terms collectively manage 47.1% of the market. UBS holds a 9.9% industry share.

global private bank key performance indicators KPIs 2015

“Looking ahead, in the intensively competitive market it will be the details that make the margin of difference. The winners will be those that pay the most detailed attention to the optimised commercialisation of the client journey and benchmarking this among peers. Aside from the annual benchmarking, our unique collation of HNW and UHNW client satisfaction ratings of firms identifies who is leading in this context,” added Scorpio Partnership’s Managing Partner Sebastian Dovey.

 

Section two:
Foreword, table of contents and list of figures

Scorpio Partnership private bank benchmark

 

 

 

 

 

Foreword – The Evolution of KPI Benchmarking

The Scorpio Partnership Private Banking Benchmark is now in its 14th year of providing analysis of key performance indicators across the international wealth management industry. The past 14 years have revealed insights into the industry through a stream of financial data. For those familiar with the structure of the document, the focus of analysis is on the aggregated results for key performance indicators (KPIs).

Each year presents an opportunity to push the industry understanding of the benefits of KPIs. When the first edition was launched we frequently received queries from senior industry leaders about what KPIs and AUM both stood for! 23 banks were assessed. By year three there were questions surrounding the meaning of NNM and the merit of assessing profits. Over 100 firms were evaluated. By year eight, more than 200 financial institutions were reporting against many standard KPI criteria and an accurate form of market share was assessed. Our push for greater industry granularity never ceases.

Overall, the findings demonstrate that the international wealth management sector has strengthened. Last year was all about the ‘new normal’ and so it is fitting that this year it is about new opportunities and with it new challenges. While annual growth results may not be as buoyant as last year, they are still positive. Strong assets under management (AUM) figures from the leading wealth managers have become part of convention, but it is costs of the wider banking universe that continue to add burdens on operating performances.

This year, for the first time, the Global Private Banking Benchmark Report debuts analysis surrounding public client satisfaction data covering the leading wealth management firms collated by our research programs. This new business KPI, in our opinion, will open a new dimension of understanding on the drivers of growth and performance. The incorporation of the perspective will benchmark institutions against client feedback and expectations. The analysis will identify how these factors correlate to AUM growth, income, cost and profitability.

There is every reason to the market will forge ahead. Yet, there should be a constant quest to understand and embrace the driving forces of growth. The main forces include demand, competition, regulation, markets, consolidation, differentiated target operating models and costs. The critical dynamic of all these forces for strategic leaders is to achieve an optimised balance between costs and income. The traditional post GFC industry approach of future growth through a relentless cost management by reducing overheads maintains popularity among many firms. Coupling this to adjusting income levels where possible is considered the most appropriate way forward. However, it is our view now that a new crucial third dimension of tracking and understanding client insight presents a competitive advantage for those that pursue it.

For those with a thirst of comparable evidence in a complex industry, we recommend this report to you and wish you success in your quest to lead.

 

Contents

global private banking benchmark 2015 contents

 

 

List of figures

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Section three:
Sample of Benchmark data

average operating income private banks 2007 - 2014

 

 

breakdown of private bank operating income 2007 - 2014

 

 

private bank average operating income