The value of high net worth individuals (HNWIs) has continued to increase in 2019 but is expected to have declined due to the impacts of COVID-19, according to a report.
According to the World Wealth Report 2020 from Capgemini, the number of HNWI’s for Australia – those with assets totally over US$1 million (AUD$1.43m) or more – increased 6.8% in 2019, while their collective financial wealth increased 4.2%.
North America saw a 11% rise, followed by Europe (9%), surpassing Asia-Pacific (8%) for the first time since 2012.
Capgemini projected a decline of between 6-8% in global wealth at the end of April 2020, compared to December 2019.
Anirban Bose, Capgemini financial services chief executive, said wealth managers and firms are finding themselves in uncharted waters.
“This unpredictable period may also present opportunities for firms to reassess and reinvent their business and operating models to be more agile and resilient,” Bose said.
“Analytics and automation as well as emerging technologies like artificial intelligence, can enable firms to enhance revenues through better client experiences while reducing costs by streamlining processes.”
Its analysis also found investment priorities have also shifted as sustainable investments that uphold environmental and social priorities, had gained significant prominence post-pandemic with 40 of HNWI planning to put cash into sustainably investments.