Organic Growth Will Be a Defining Advantage as Financial Wealth Hits Record-High $305 Trillion
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Organic Growth Will Be a Defining Advantage as Financial Wealth Hits Record-High $305 Trillion
Global financial wealth surged to a record $305 trillion in 2024, propelled by an 8.1% rise in financial assets. Yet beneath this headline growth, the industry’s underlying engine, namely organic expansion, needs renewed strategic focus. Just 28% of wealth manager asset growth over the past decade came from existing advisors.
Boston Consulting Group logo (PRNewsfoto/The Boston Consulting Group)
New proprietary analysis by Boston Consulting Group (BCG) reveals that just 28% of wealth manager asset growth over the past decade came from existing advisors, falling to 22% in mature markets. Instead, firms leaned heavily on external levers such as M&A, market performance, and advisor recruitment—all of which can no longer be relied on to increase revenue.
“What defines winners today is no longer exposure to market performance or the ability to poach senior bankers, but their ability to grow from within,” said Michael Kahlich, managing director and partner at BCG. “Firms that deliberately invest in advisor enablement, brand identity, and next-gen client strategies are outperforming peers—not just in revenue, but also in valuation multiples.”
These are among the key findings of BCG’s Global Wealth Report 2025: Rethinking the Rules for Growth:
Source: https://finance.yahoo.com/news/organic-growth-defining-advantage-financial-040100827.html