Record Year Seen For Wealth Creation

Wealth management firms and financial advisors need strong knowledge of growth areas such as sustainable investing and crypto-related assets going forward despite the biggest growth in wealth in more than a decade (10.6 per cent), says a Boston Consulting Group (BCG) report. These helped push 2021 to a record total of US$530 trillion, with $26 trillion of new private wealth created in the year, says ‘Global Wealth 2022: Standing Still Is Not an Option.’ It predicts that $80 trillion in new wealth will be created over the next five years, including almost $2 trillion in Canada to a total of $9.4 trillion. How the wealth management industry responds to this, through strategic choices, compelling products, and service for clients – and the ability to attract and retain clients – will be key to remaining competitive, it says. “Wealth clients are looking for next-generation offers and next-level service ‒ including net zero, crypto, personalization, and digitization. The most important question facing wealth managers today is not which initiatives to prioritize, but how best to implement them,” says Anna Zakrzewski, global leader of BCG’s wealth management segment and a co-author of the report.