Of Special Interest
- Consumer confidence in banks, credit card providers and investments remain stable as demand supercharges digital finance says Toluna research
- Nuapay data reveals strong consumer demand for Open Banking and better payment experience
- US banks see IT modernisation as a way to improve customer experience
- Risk mitigation in global trade depends on digitisation-Andrew Raymond, CEO, Bolero International comments
- Juniper Research new study says the volume of B2B payments facilitated by non-banks will exceed 53 billion in 2022, from a COVID-related low of 38 billion in 2020
- CMA issues fifth publication over 3 years of the service quality league table of personal and business current account providers
- Barclays says scammers take advantage of COVID-19, cashing in on nations’ uncertainty
- S&P Global report says financial market infrastructure sector's earnings likely to cool off In second half
- Global banking market capitalisation slumps by over 30% amid pandemic says Buyshares research
- Digital wallet spend in Europe & North America to increase by 40% in 2019, finds study
- Juniper forecasts mobile money transactions will exceed 200 billion by 2024
- Banks can save the world from climate change, says former UN climate chief
- Research by NatWest reveals gender divide over attitudes to saving
- Europe’s big bank problem: too much capital is trapped in the US, says Scope
- Later-Life lending market set to almost double in the next 10 years, finds report
- Barclays/Cebr report challenges nation to think differently about wealth
- Fifth of UK investors looking to debt investment, new research reveals
- Regtech will play a more important role in PSD2, says Mitek
- Banks turn to Fintech partnerships to improve customer experience, finds Fraedom
- New industry code to tackle fraud must deliver, says Which?
- New TTF report highlights loss of trust in financial services
- Arxan highlights financial app vulnerability epidemic
- SAS asks whether banks really need to choose between operations and innovation
- Which? raises alarm as almost 1,700 free ATMs become fee-charging
- Financial wellness affects half of peoples’ mental or physical health, finds report
- Study finds traditional financial institutions embrace Fintech disruption
- Grass is greener for environmentally friendly businesses, finds Barclays
- Prospective homeowners would consider a 40-year mortgage to escape renting, finds Santander
- Millennials’ needs are changing the face of banking industry, says new report
- FS is putting consumer data at risk by failing to protect mobile apps, says Arxan
- A lack of belief in their ability holds 28% women back in work, says Cambridge & Counties
- ‘Which?’ reveals Scotland has lost over a third of its bank branches in eight years
- Next downturn unlikely to be as bad as 2008, according to S&P
- FCA reveals findings from first cryptoassets consumer research
- US consumers favour single mobile app for banking and payments
- Banks suffering major IT shutdowns every day, ‘Which?’ reveals
- The US will be a key offshore centre in 2019, says GlobalData
- Debit industry changes markedly in 10 years of the Debit Issuer Study
- UK's ‘Big Five’ face ‘too big to compete’ as small challengers secure stellar returns
- Banks as vulnerable now as before crash, says new study
- Leverage ratio a constant conundrum for European and US banks, says SNL
1st March 2019
The US will be a key offshore centre in 2019, says GlobalData
Investment managers should be rethinking portfolio diversification strategies for their HNW clients as recent regulatory changes will encourage flows of assets to the US, already leading as the world’s biggest offshore market, according to GlobalData.
The company’s latest report, "2019: Trends to Watch in Global Wealth Management", identified four main trends to come in the year:
• In the wake of CRS, non-participating countries such as the US will continue to grow as offshore centres.
• Volatility will require a rethink of diversification.
• As use of technology increases, wealth managers will have to take more serious action towards cybersecurity.
• New client demographics will become more prevalent.
Although there are some delays, in 2019 the vast majority of committed countries will be exchanging information under the Organisation for Economic Co-operation and Development’s (OECD) common reporting standard (CRS).
Sergel Woldemichael, Wealth Management Analyst at GlobalData, said: “The OECD’s CRS has a focus on clamping down on tax evasion but it will not largely disrupt the offshore market. Tax benefits are not the only motivator to look overseas for investments, geographic diversification, and access to a better range of investments, are all unaffected by CRS. Nevertheless, the US market which is exempt from CRS, will continue to benefit from not participating. The country already has 27 per cent of HNW global offshore wealth, and this proportion can increase.”
Further flow of assets to the US might jeopardise investment managers’ efforts to geographically diversify client portfolios. According to the report, only a third of wealth managers GlobalData surveyed are concerned about a potential market downturn. However, it will be paramount that wealth managers make their clients aware of its possibility, to avoid them being taken by surprise if the markets do descend.
Mr Woldemichael adds: “Advisors should encourage diversification both onshore and offshore. In particular, alternatives will be a key way to diversify portfolios as they cope with market downturns better than traditional asset classes. In order to drive uptake in alternatives, client trust and education will be vital.”