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Wealth management in belgium and the netherlands 2011
1. Wealth Management in Belgium and the Netherlands 2011
Introduction
Clients lost a lot in the recession: returns, risk tolerance and confidence. Now in a rebuilding phase,
wealth managers that understand their clients' demands and motivations are in the best position to
profit. Datamonitor's analysis provides the data and insight to monitor competitors' strategies, size
their potential customer base, and understand their needs.
Features and benefits
Build your customer targeting strategy using in-depth HNW demographics and needs analysis based
on Datamonitor's annual Global Wealth Manager Survey.
Assess your competition through detailed profiles of notable players, including the customer
targeting, marketing and product strategies they employ.
Size your potential client base using Datamonitor's proprietary data, presenting the number of
affluent individuals by liquid asset band to 2014.
Highlights
Belgium was home to more than 2.1 million mass affluent individuals at the end of 2006, but the credit
crisis wiped almost 400,000 of them out of the mass affluent population by the end of 2009. The Dutch
mass affluent on the other hand population grew or remained fairly stable through to 2008, before
contracting.
The typical Belgo-Dutch HNW customer is over 50, and has earned his wealth through
entrepreneurship. He is conservative, with a lower-than-average financial acumen and low risk
tolerance. As a result he is mistrustful of discretionary mandates, preferring instead to have a say in
the management of his portfolio through advisory services.
Banks in Belgium and the Netherlands were unprepared for the financial crisis and all of the major
banks in the two countries, with the exception of Rabobank, required help from their governments to
survive. The crisis precipitated an overhaul of the banking system.
Table Of Contents
OVERVIEW
Catalyst
Summary
Methodology
2. EXECUTIVE SUMMARY
Bank bailouts weigh on the Belgian and Dutch economies, but their affluent populations are on the
increase again
Belgo-Dutch affluent populations contracted sharply in 2009, and have not recovered to pre-crisis
levels
However, the affluent Belgian and Dutch populations are to see steady growth over the coming years
Belgo-Dutch HNW individuals are typically older, entrepreneurial, and financially conservative
The banking sectors in Belgium and the Netherlands are highly concentrated, and bank failures
impacted the whole market
The top three banks in Belgium hold 80% of the country's assets
The top three banks in the Netherlands hold just under half of the country's assets
The financial crisis resulted in a slew of bailouts and nationalizations
The crisis precipitated an overhaul of the banking system
SIZING AND FORECASTING THE AFFLUENT MARKET IN BELGIUM AND THE NETHERLANDS
Introduction
Macroeconomic overview
Recent trends and performance
GDPBelgium did not fare as badly as much of the rest of Europe during the recession
Inflation
Long-term and short-term interest rates
Stock market capitalization
Income distribution and inequality
Regulation of wealth management in Belgium and the Netherlands
Industry regulators
Industry associations
Recent legislation and regulatory developments
Sizing the onshore affluent population
Belgian and Dutch affluent populations contracted sharply in 2009, and have not recovered to pre-
crisis levels
Onshore liquid assets contracted sharply during the financial crisis
Forecasting the onshore affluent market
The affluent Belgian and Dutch populations are to see steady growth over the coming years
Belgo-Dutch mass affluent AUM will recover from the latest recession in 2011
Belgo-Dutch HNW individuals tend to keep their wealth onshore today
(Untitled sub-section)
HNW CUSTOMERS IN BELGIUM AND THE NETHERLANDS
Introduction
Who is the typical Belgo-Dutch HNW investor?
Belgium and the Netherlands have fewer HNW individuals in their peak earning years
Women account for 42% of HNW individuals in the Belgo-Dutch region
Nearly half of HNW individuals have amassed their fortunes through entrepreneurship
Belgo-Dutch HNW individuals are conservative investors, but will shift somewhat into equities within
two years
Cash and fixed income account for the majority of Belgo-Dutch HNW individuals' portfolios today
3. Detailed asset class analysis shows that Belgian HNW individuals have invested most in equities
Within two years, equities will increase as a proportion of Belgo-Dutch HNW portfolios, while cash will
decrease
Belgo-Dutch HNW clients look to their wealth managers for asset management rather than credit
products
Belgo-Dutch HNW clients are well catered for by their private banks
Discretionary asset management is out of favor among Belgo-Dutch HNW individuals, and will remain
so
Credit demand is concentrated in credit cards
Planning services are very much in demand among Belgo-Dutch HNW individuals, but insurance and
pensions are not
Belgo-Dutch HNW individuals are risk averse and loyal
Risk appetite is very low among HNW individuals
Belgo-Dutch HNW clients place a high premium on face-to-face contact
Despite high demand for face-to-face interaction, local wealth managers meet with clients quarterly
Belgo-Dutch HNW individuals show moderate loyalty to their wealth managers
Belgo-Dutch HNW investors spread their wealth between wealth managers
Internal referrals are the most effective means of customer acquisition
COMPETITOR DEVELOPMENTS IN BELGO-DUTCH WEALTH MANAGEMENT
Introduction
Business models of Belgo-Dutch wealth managers
The retail banking system in Belgium and the Netherlands
Competitor trends
The financial crisis resulted in a slew of bailouts and nationalizations
Competitor profiles
ABN Amro
BNP Paribas Fortis
Delen Private Bank and Bank J. Van Breda
Dexia Private Banking
ING Private Banking
Van Lanschot
APPENDIX
Supplementary data
Definitions
High net worth (HNW)
Liquid assets
Mass affluent
Measures of growth
Methodology
Overall methodology
Global Wealth Model Methodology
Global Wealth Managers Survey 2011
Further reading
Selected bibliography
4. Ask the analyst
Disclaimer
LIST OF TABLES
Table: Key Belgian macroeconomic data
Table: Key Dutch macroeconomic data
Table: Belgian mass affluent population (000s), 2006–10
Table: Dutch mass affluent population (000s), 2006–10
Table: Belgian HNW population (000s), 2006–10
Table: Dutch HNW population (000s), 2006–10
Table: Value of Belgian mass affluent assets by asset band (€bn), 2006–10
Table: Value of Dutch mass affluent assets by asset band (€bn), 2006–10
Table: Value of Belgian HNW assets by asset band (€bn), 2006–10
Table: Value of Dutch HNW assets by asset band (€bn), 2006–10
Table: Forecast of the Belgian mass affluent population (000s), 2010–14
Table: Forecast of the Dutch mass affluent population (000s), 2010–14
Table: Forecast of the Belgian HNW population (000s), 2010–14
Table: Forecast of the Dutch HNW population (000s), 2010–14
Table: Value of Belgian mass affluent liquid assets by asset band (€bn), 2010–14
Table: Value of Dutch mass affluent liquid assets by asset band (€bn), 2010–14
Table: Value of Belgian HNW liquid assets by asset band (€bn), 2010–14
Table: Value of Dutch HNW liquid assets by asset band (€bn), 2010–14
Table: Belgo-Dutch wealth managers, 2010
Table: Belgo-Dutch wealth managers, 2010
Table: ABN Amro wealth management brands, 2011
Table: ABN Amro retail and private banking performance, 2009–10
Table: BNP Paribas Fortis wealth management brands, 2011
Table: Delen Private Bank and J. Van Breda wealth management brands, 2011
Table: Delen Private Bank performance, 2009–10
Table: J. Van Breda performance, 2009–10
Table: Dexia wealth management brands, 2011
Table: ING wealth management brands, 2011
Table: ING retail Belgium performance, 2009–10
Table: Van Lanschot wealth management brands, 2011
Table: Van Lanschot private and business banking performance, 2009–10
Table: Western European stock market capitalization (€bn), 2006–10
LIST OF FIGURES
Figure: Belgium and the Netherlands are relatively small economies, as measured by GDP at 2000
constant prices
Figure: After sharp contractions, GDP growth in Belgium and the Netherlands is positive again
Figure: While Belgian CPI was volatile in 2007–10, Dutch inflation remained relatively steady
Figure: Long-term rates held up during the recession
Figure: Stock markets in Belgium and the Netherlands have not yet recovered from the recession
Figure: Belgium ranks slightly higher in terms of inequality than the Netherlands
Figure: The mass affluent Belgian population contracted more sharply than its Dutch peer group during
5. the recession
Figure: The Dutch HNW population grew during 2006–10 while the Belgian HNW population declined
Figure: Belgo-Dutch mass affluent portfolios contracted sharply in 2009
Figure: Flat growth was seen in Belgo-Dutch HNW portfolios during 2006–10
Figure: The Belgian mass affluent population will grow more strongly than the Dutch mass affluent
population to 2014
Figure: The HNW population will grow robustly in Belgium and the Netherlands to 2014
Figure: Mass affluent portfolios will see strong growth to 2014
Figure: HNW AUM will grow in both Belgium and the Netherlands to 2014
Figure: There are fewer HNW individuals in their peak earning years in Belgium and the Netherlands
Figure: More HNW individuals are women in Belgium and the Netherlands than in the rest of Europe
Figure: Belgo-Dutch HNW individuals are a more entrepreneurial customer base, and are more
inheritance-based than those found in the rest of Europe
Figure: Belgo-Dutch HNW individuals are highly liquid and conservative
Figure: Equities, deposits, and corporate bonds form the core of the Belgo-Dutch HNW investor's
portfolio
Figure: Belgo-Dutch HNW investors will shift from cash to equities in two years
Figure: Belgo-Dutch HNW individuals are well catered for
Figure: Advisory asset management is important to Belgo-Dutch HNW investors
Figure: Advisory asset management will be preferred over discretionary asset management in two
years' time
Figure: Loan demand is low among Belgo-Dutch HNW individuals
Figure: Belgo-Dutch HNW individuals will show a high demand for credit cards from private banks in
two years' time
Figure: Planning services are important to Belgo-Dutch HNW individuals, but pensions are not
Figure: Financial planning will become important for even more Belgo-Dutch HNW individuals in two
years' time
Figure: Belgo-Dutch HNW investors are risk averse and not open to new investments, either onshore
or offshore
Figure: Face-to-face relationship management is important to Belgo-Dutch HNW individuals, but
personal relationships in business are less important
Figure: Belgo-Dutch HNW individuals see their relationship manager quarterly
Figure: Belgo-Dutch HNW individuals are loyal to their wealth manager, and are at low risk of leaving
them
Figure: Most Belgo-Dutch HNW individuals hold 11–20% of their wealth with a single wealth manager
Figure: Internal referrals are a better customer acquisition method than client or intermediary referrals
in the Belgo-Dutch region
Figure: The highest single proportion of banks in Belgium operate as branches under foreign law
Figure: There are many small EU banks offering services to Dutch banking clients
Figure: ABN Amro's wealth management businesses sit within retail and private banking
Figure: BNP Paribas Fortis Private Banking is found throughout Belgium
Figure: Delen Private Bank and J. Van Breda operate as independent banks
Figure: Dexia has private banking offices both onshore and offshore
Figure: Dexia Private Banking's fee and commission results improved in 2010
Figure: ING's private banking Belgium division sits within retail banking Benelux
6. Figure: Van Lanschot's main private banking operations are in the Netherlands
Figure: Global Wealth Managers Survey 2011 geographic coverage
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