Product Description
Introduction
Clients lost a lot in the recession: returns, risk tolerance and confidence. Now in a rebuilding phase, wealth managers that understand their clients' demands and motivations are in the best position to profit. Datamonitor' s analysis provides the data and insight to monitor competitors' strategies, size their potential customer base, and understand their needs.
Features And Benefits
• Build your customer targeting strategy using in-depth HNW demographics and needs analysis based on Datamonitor' s annual Global Wealth Manager Survey.
• Assess your competition through detailed profiles of notable players, including the customer targeting, marketing and product strategies they employ.
• Size your potential client base using Datamonitor' s proprietary data, presenting the number of affluent individuals by liquid asset band to 2014.
Highlights
There were more than 6 million mass affluent individuals in France at the end of 2008, a robust population for the country' s banks to target. However, the credit crisis led to almost 1 million of those individuals having dropped out of the mass affluent population by the end of 2009.
The French HNW customer is typically male and aged between 51 and 65 years old. He earned his wealth through entrepreneurship and, judging by his portfolio, he is conservative, holding most of his liquid wealth in bonds and cash. However, these broad asset classes mask a certain risk tolerance.
BNP Paribas and Société Générale are dominant players in French wealth management. Both have dedicated entrepreneurial services, and BNP Paribas also concentrates on the ultra high net worth market (UHNW). In this area its promotion of philanthropy services through its annual Awards for Personal Philanthropy is highly effective.
Your Key Questions Answered
• What strategies are my competition employing to win and keep affluent clients?
• Which products and services will affluent clients in France want in the next two years?
• How is the French wealth management structured? What role do banks and asset managers play?
• How many potential clients in France have onshore liquid assets that would allow me to run a very profitable business?
Table of Contents
Executive Summary
France suffered along with the rest of Europe over the past three years, but its affluent population is now on the rise
France' s affluent population took a sharp hit in 2009
Affluent French individuals are on the rise again
French HNW investors are older, entrepreneurial, and financially sophisticated
Wealth management competition is balanced between public and private and local and foreign-owned banks
The mutual and co-operative banks have separately branded private banking services
Along with strong domestic players, foreign-owned banks are prevalent in French wealth management
OVERVIEW
Catalyst
Summary
Methodology
SIZING AND FORECASTING THE AFFLUENT MARKET IN FRANCE
Introduction
Key macroeconomic and demographic data
Macroeconomic trends and performance
GDP
Real GDP growth
Inflation
Long-term and short-term interest rates
Stock market capitalization
Income distribution and inequality
Regulation of wealth management in France
Key institutions and players
Sizing the onshore affluent population
France' s affluent population took a hit in 2009, and their population has not yet recovered
Onshore liquid assets contracted sharply during the financial crisis, wiping €106bn from mass affluent portfolios in 2009 alone
Forecasting the onshore affluent market
France' s mass affluent population will see steady growth over the coming years
The AUM of French mass affluent investors will only fully recover in 2012
Offshore tax evasion probe continues to rumble
HNW CUSTOMERS IN FRANCE
Introduction
Who is the French HNW investor?
Most French HNW individuals are between 51 and 65 years old
Women account for just over 30% of HNW individuals in France
The majority of HNW individuals amassed their wealth through entrepreneurship
At present French HNW individuals invest conservatively, but will move back into equities in two years
In broad asset class terms, France' s HNW investors are conservative, with almost half of their portfolios held in fixed income and cash
Detailed analysis shows that the wealth of French HNW individuals is spread across a wide range of asset classes
Within two years, equities will increase as a proportion of French HNW portfolios, while fixed income will decrease
Financial planning is offered much less frequently in France than in the rest of Western Europe
French HNW individuals are planners who strongly demand credit products, but take an all-or-nothing approach to advice
While already popular with French HNW individuals, discretionary asset management is expected to see growing demand
Credit demand is concentrated in credit cards and personal loans
Costly taxation and inheritance laws give French HNW investors an enduring incentive to utilize planning services, well above the Western European average
French HNW individuals are financially sophisticated and tend to be loyal
French investors are financially knowledgeable, with a strong understanding of risk and return
French HNW investors value face-to-face contact
Loyalty to wealth managers is high among French HNW individuals
The majority of French HNW investors hold 51-70% of their portfolio with one wealth manager
Internal referrals are the most effective means of customer acquisition
Credit Suisse' s One Bank strategy is reaping significant rewards
COMPETITOR DEVELOPMENTS IN FRENCH WEALTH MANAGEMENT
Introduction
Business models of France' s wealth managers
Commercial banks account for a majority of France' s banks but only a minority of the branch footprint
France' s asset managers and insurers have an appreciable wealth market share
The French wealth management market is predominantly bank-led
Competitor trends
[Missing title]
Foreign-owned banks are prevalent in French wealth management
Competitor profiles
Oddo Banque Privée
Performance: growth in AUM but continued declines in net banking income
Banque Privée 1818
BNP Paribas Wealth Management
Société Générale Private Banking
Crédit Agricole
Appendix
Supplementary data
Definitions
High net worth (HNW)
Mass affluent
Liquid assets
Measures of growth
Onshore
Methodology
Overall methodology
Global Wealth Managers Survey 2011
Global Wealth Model Methodology
Selected bibliography
Further reading
Ask the analyst
Datamonitor consulting
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