Enjoying a tailwind in a volatile interest rate environment

Private banking and wealth management: today’s market and ideas for new heights

In 2024, German private banking clients held assets of around EUR 6.5 trillion. By 2030, this number is expected to rise to EUR 8.5 trillion.

Income development for banks in this segment has been relatively good in recent years. It will, however, weaken in the future, since this growth was driven primarily by the deposit business, which in turn was driven by the continued relatively high level of interest rates. 

This driving force is likely to decline sharply by 2030. Non-interest income will therefore (have to) play a greater role, be it through mandate business expansion or active real estate portfolio management. We are already seeing the first successes in these areas.

Nevertheless, market and competitive dynamics are creating pressure for private banking providers to rethink value creation at key touchpoints in the customer journey. 
 

Our analysis of the private banking market in Germany reveals key issues that constitute challenges and opportunities:

• Strengthening the presumption of private banking competence – for an exclusive, visible and distinctive value proposition: location, pricing, brand and services
• Supporting clients across channels – for a 360° view of client portfolios, more customized advisory services and greater efficiency
• Managing assets holistically – with artificial intelligence that is based on huge data sets and enables highly personalized solutions
• Engaging the next generation – NextGen management: the 25- to 39-year-olds have different needs than parent generations, but are highly relevant for long-term asset retention

Request our study to find out more about these four focus topics and the resulting needs for action!