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Improving Product, Client, and Advisor Profitability in Wealth Management

Using Profitability Reporting to Drive Top- and Bottom-Line Improvements

  Author: Ed Tracy, Kevin Rose, James Papadopoulos, Francesco Orselli
 January, 2013
  Price: 0.00


With some market segments, including mass affluent clients, are still underexplored; there are areas for future growth that represent important opportunities. Wealth managers should pursue targeted segments that can lead to increases in volume and profitability, instead of margin destruction. Analyzing the current business for improvements and beginning to take action to positively impact main profitability drivers can help managers return to healthy margins serving current and future clients.

To do so, a logically framed approach can provide a useful reference for guiding the improvement process. This five-stage approach addresses fundamental issues and offers incremental points of progress to assist managers to:
1.Begin to assess the challenges of profitability
2.Undertake initial steps to track profitability based on reporting capabilities
3.Develop views of product profitability through the tracking and allocation of costs by activity performed (activity-based costing)
4.Translate an understanding of product profitability into client profitability
5.Use clear views into advisor profitability to identify main improvement areas


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