Scope
Sizing and forecasting of mass affluent and high net worth individuals were generated from Datamonitor's proprietary Global Wealth Model
Data presented for 10 liquid asset bands, from EUR50-75K to EUR3m+
17 French wealth managers were surveyed during Datamonitor's Wealth Management Market Leaders Survey 2005
Survey questions covered business and product/service development, client trends and attitudes and general market issues
Highlights
In 2004 wealthy clients accounted for 9.2 per cent of France's total adult population, equivalent to 4.5 million individuals. Within this, 1.1 per cent were classified as high net worth individuals, while the remaining 8.1 per cent fell within the mass affluent category.
The French market has witnessed moves towards consolidation, primarily as a result of growing cost pressures. Many of the private banks now being merged have long histories and strong brand images, which suggests there must be a powerful cost incentive to bring them together.
Despite having relatively long-term relationships with their clients, the majority of French wealth managers believe that wealthy clients are more prone to switching now than five years ago, with over 70% of survey respondents agreeing with this statement.
Reasons to Purchase
Assess market attractiveness by reviewing size and growth forecasts up to 2009
Improve client service through greater awareness of their attitudes and concerns
Assess the threats and opportunities for wealth managers in the market
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French mass affluents and high net worths
Competitive background 4
Opportunities and threats for wealth managers
Clients
Future market developments
CHAPTER 2 INTRODUCTION
What is this report about?
Who is the target reader?
How to use this report
Note to readers
CHAPTER 3 FRENCH MASS AFFLUENTS AND HIGH NET WORTHS
The growth of French mass affluents and HNWs since the downturn of 2000-2002 has been slow compared with the European averages
French mass affluents and the assets they hold grew by 0.9 and 1.6 per cent respectively since 2000
French High Net Worths and the assets they hold grew by 15.6 and 18.6 per cent respectively since 2000
French mass affluent account for 8.1 per cent of the total population
Mass affluent individuals hold EUR433 billion in liquid assets
French HNW represent just 1.1 per cent of the country’s adult population
HNW individuals hold EUR450 billion in onshore liquid assets
Data tables
CHAPTER 4 COMPETITIVE BACKGROUND
The French wealth management market is relatively mature compared to its European neighbors
The competitive make-up of the French wealth management market has undergone some notable changes in 2004-2005
The French wealth management market is one of the most coveted in Europe
A number of new players have entered the domestic wealth management market in 2004/2005
Other competitive developments were a result of restructuring programs and partnerships between existing domestic players
Some domestic players embarked on a strategy of aggressive international expansion
Products and service trends
It’s BNP Paribas all the way…
CHAPTER 5 OPPORTUNITIES AND THREATS FOR WEALTH MANAGERS IN FRANCE
New clients and stronger product range are the best sources for revenue growth in the next two years
Marketing/branding push and improvement of CRM and support systems are the key strategic initiatives on the French wealth managers’ agendas
Regulatory compliance and domestic competition are major issues for French wealth managers
Cost of base salaries and increase in overhead due to business growth will cause the greatest concern for cost base management
Data tables
CHAPTER 6 WEALTHY CLIENTS
Service quality and personal relationship are the main factors in determining a client’s choice of wealth management service
Wealthy French clients rate service ahead of investment performance and advisory capability
Referrals from existing clients remain most effective for client acquisition
French wealthy clients tend to be fairly loyal to their wealth managers but are more prepared to defect than five years ago
Over 80 per cent of wealth managers in France have an average client relationship of more than five years
French clients are more likely to change their wealth manager today than five years ago
French clients are demanding more knowledge about their investments
Adequate investment performance is now the key to retaining wealthy French clients
Achieving higher returns is the key for French wealthy clients
Owners and managers of businesses offer the greatest potential for future custom
French wealth managers control a relatively small proportion of their clients’ wealth
A significant proportion of French wealth managers do not apply thresholds to their client bases
Data tables
CHAPTER 7 FUTURE MARKET DEVELOPMENTS
Alternative investments and foreign exchange products are seen to hold significant business potential among wealthy French clients over the next two years
Inheritance planning products, on the other hand, are seen as having very little potential over the next two years
Developing manager selection capabilities is at the top of the list when it comes to enhancing investment offering
Larger banks and niche wealth managers are expected to increase their market share over the next two years
Wealthy French and their assets are forecast to increase strongly over the next five years
Combined value of French mass affluent and HNW assets is forecast to reach EUR1,204bn in 2009
Combined number of French mass affluent and HNW inviduals is forecast to reach 5.6m in 2009
Data tables
Forecast tables
CHAPTER 8 APPENDIX
Methodology
Survey methodology
Definitions
Further Reading
Datamonitor Global Wealth Service SPP: Reports
Datamonitor Global Wealth Service SPP: Insight Reports
Datamonitor Wealth Management Competitor Tracker
Datamonitor Asia Pacific Wealth Management SPP: Reports
Datamonitor Savings & Investments SPP: Reports & Briefs
Datamonitor Savings, Investments and Protection SPP: Interactive Models
SPP writing team
LIST OF TABLES
Table 1: Europe: the number of mass affluent and HNW individuals and the value of their liquid assets, 2000-2004
Table 2: France: Number of mass affluent individuals, segmented by liquid asset band, 2000-2004
Table 3: France: Value of mass affluent liquid wealth, segmented by liquid asset band, 2000-2004
Table 4: France: Number of HNW individuals, segmented by liquid asset band, 2000-2004
Table 5: France : Value of HNW liquid wealth, segmented by liquid asset band, 2000-2004
Table 6: What will most determine revenue growth in the French market in the next two years?
Table 7: What strategic initiatives are you considering or implementing in the next year?
Table 8: What are the most pressing concerns for your business at present?
Table 9: What are your main areas of concern in controlling your cost base?
Table 10: In your experience, what are the key influences that determine a French client’s choice of wealth management service?
Table 11: In your experience, what are the most effective customer acquisitions techniques in the French market?
Table 12: How long has your client base, on average, been with you?
Table 13: To what extent do you agree with the following statements?
Table 14: In your experience, what are the most likely reasons for clients to leave a wealth management service?
Table 15: What are your clients most interested in today?
Table 16: Which client types offer the greatest potential in the next five years?
Table 17: Approximately what share of your clients’ wallet do you think you have on average?
Table 18: In relation to thresholds, approximately what proportion of your client base is currently below it?
Table 19: On average, what proportion of your clients would you estimate have their primary wealth management relationship with you?
Table 20: Please rate the following products areas in terms of their business potential among wealthy clients in your market during the next two years
Table 21: From the following products areas, on which three will your company be focusing most resources in the next two years?
Table 22: How are you planning to develop your investment offering in the next two years?
Table 23: To what extent do you agree with the following statements?
Table 24: French mass affluent forecasts
Table 25: French high net worth forecasts
LIST OF FIGURES
Figure 1: 8.1% of those aged over 15 in France are classified as mass affluent individuals 3
Figure 2: 71% of French wealth managers believe owners/managers of businesses will be a key client group for the next five years 6
Figure 1: France is far ahead of the European average in terms of the number of mass affluent and the value of their liquid assets, 2000-2004
Figure 2: France also outperforms Europe where the growth of the HNW individuals and their liquid assets is concerned, 2000-2004
Figure 3: The majority of French mass affluent fall into the lowest asset bracket, 2000-2004
Figure 4: The overwhelming majority of Italian mass affluent liquid assets lies in the top wealth bracket, 2000-2004
Figure 5: The majority of French HNW individuals fall into the lowest wealth bracket, 2000-2004
Figure 6: Wealthiest French HNW individuals hold 28 per cent of the total liquid HNW assets, 2000-2004
Figure 7: New clients and improved products range are the key sources for revenue growth in the French wealth management market over the next two years
Figure 8: Improvement of CRM and support systems and marketing/branding push are the key strategic initiatives being considered by French wealth managers
Figure 9: Increasing regulatory pressures and growing domestic competition are the main concerns for French wealth managers
Figure 10: 64.7% of French wealth managers agree that a wave of mergers and acquisitions will intensify domestic competition
Figure 11: Cost of base salaries and increase in overhead are the key concerns for French wealth managers in controlling their cost base
Figure 12: Service quality and personal relationship are seen as key influences in a client’s choice of wealth manager
Figure 13: Almost 90% of French wealth managers consider client referrals to be one of the most effective customer acquisition techniques
Figure 14: For over 80% of French wealth managers, their average client base has been with them for more than five years
Figure 15: Over 70% of French wealth managers believe that clients are more likely to change their wealth manager today than five years ago
Figure 16: The overwhelming majority of respondents stated that clients are demanding to know more about the management of their funds
Figure 17: Over 70% of French wealth managers believe that inadequate investment performance is one of the most likely reasons for clients to leave a wealth management service
Figure 18: Achieving higher returns and tax optimization are the key interests for French clients at present
Figure 19: 71% of French wealth managers believe owners/managers of businesses will be a key client group for the next five years
Figure 20: Just over 20% of French wealth managers believe they control over a half of their clients’ assets
Figure 21: 53% of French wealth managers have the majority of their client bases above the thresholds levels
Figure 22: Alternative investments and foreign exchange products are seen as those with the most potential for French wealthy clients over the next two years
Figure 23: Inheritance planning and life insurance products are seen as those with the least business potential over the next two years
Figure 24: 50% of wealth managers in France will be developing their manager selection capabilities over the next two years
Figure 25: Niche wealth managers are widely expected to play a greater role in the French wealth management market in the next two years
Figure 26: Liquid assets owned by mass affluent and HNW French individuals are forecast to grow by an average of 6.4 per cent each year to 2009
Figure 27: The number of mass affluent and HWN French individuals is forecast to grow by an average of 7.8 per cent each year to 2009
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