Expert: Matt Lonsdale, Director, Davies Group Facilitator: Niall Buggy, Consultant
Headlines:
- Various fee structures were debated, highlighting regulatory concerns and value-for-money challenges
- Significant waste and inefficiencies in wealth management firms were identified as areas for improvement
- The challenge of appropriately pricing and servicing different client segments was a recurring theme
- Brief mentions of AI, M&A activity, and gaps in financial education lacked depth or resolution
Discussion points:
Pricing models in financial services
Discussions on fee structures included performance fees, fixed fees, and percentage-based fees.
Regulatory concerns around pricing transparency and value for money emerged as key themes.
Challenges highlighted on the difficulties in balancing profitability and fairness in fee models.
Productivity and efficiency in wealth management
It was noted that costs from errors, rework and waste can be substantial.
Improving productivity could significantly impact pricing models and profitability.
Client segmentation and service models
Segmentation challenges and how to price and service clients with varying asset levels and needs were debated, with profitability issues around servicing less profitable client segment flagged as a persistent challenge.
Key takeaways:
- Simplify pricing structures to improve client transparency and regulatory compliance
- Address waste and rework within wealth management firms to enhance productivity and reduce costs
- Ensure pricing and service models align with client needs and profitability
- Emerging topics like AI, M&A, and advice gaps require dedicated discussions to drive actionable insights
