Only a quarter of wealth managers offer digital services, beyond email to their clients, the PwC Wealth Management report revealed on Tuesday.
The report was compiled through collecting data from 1 000 high net worth individuals (HNWI) in a questionnaire, and the data was supplemented with focus groups. Financial advisors as well as CEOs and senior managers were also interviewed to contrast what companies are doing and what individuals want, explained Jorge Camarate, head of Strategy for Africa, PwC’s consulting division.
The wealth management sector in Africa is growing. “It is a reflection of the economic reality in the continent. The continent has been growing in a fast rate, but also in a highly unequal way,” said Camarate. In Nigeria, the creation of wealth is particularly skewed towards the top 1%, which is where wealth management services are directed towards.
In South Africa, the wealth management sector is worth R7trn. “South Africa is a wealth management hub for the region,” he said. Insurance products make up 32.7% of the assets, followed by pension funds, which make up 28.9% of assets. The sector is very fragmented and the largest players, such as PSG and Citadel account for 4% of the market share, explained Camarate.