The pandemic has not hampered the rise in global wealth, according to a press release from a new report by the Boston Consulting Group (BCG).
Global wealth reached $ 250 trillion last year due to spikes in household savings, and markets showed unexpected resistance to global economic troubles, the press release said.
The report, titled “Global Wealth 2021: When Clients Take the Lead,” assumes that global wealth has grown over the past year and will continue to grow over the next five years, according to the press release.
North America, Asia – not including Japan – and Western Europe are likely to be the main contributors to wealth, the press release said.
According to the press release, there is a category of people with “simple needs” that could be of use to asset managers. These people have between $ 100,000 and $ 3 million. This segment of people has $ 59 trillion in investable wealth and could potentially add $ 118 billion to the world’s revenue pool.
“Asset managers are often undersupplied in the segment of simple needs with a standardized range of products, and the result is a bad customer experience with no ‘wow’ factor”, Anna Zakrzewski, BCG managing director and partner, global head of the company’s asset management segment and co-author of the report, said in the press release. “This is essentially a missed opportunity. To better serve this key segment, asset managers need to take a new approach that allows them to reach a larger audience in a cost-effective and scalable way, but with a highly personalized offering. “
Along with rising wealth, savings were held in store during the pandemic, especially as people were stuck inside and also worried about the possibility of economic volatility.
PYMNTS reported that global savings reached $ 5.4 trillion in 2020. Now that the economy is recovering and the pandemic appears to be receding, consumers are likely to start spending more again, analysts say. In the first quarter of 2021, the Conference Board’s global consumer confidence index hit its highest level since 2005, and the world saw new rate hikes.
NEW PYMNTS DATA: AI IN FOCUS: THE BANKING TECHNOLOGY ROADMAP
About the course: The AI In Focus: The Bank Technology Roadmap is a research- and interview-based report that examines how banks are using artificial intelligence and other advanced computer systems to improve credit risk management and other aspects of their business. The playbook is based on a survey of 100 bank managers and is part of a larger series evaluating the potential of AI in finance, healthcare and other sectors.