Wealth management is a risky gold rush for banks

Todays markets love nothing more than a growth narrative and, with wealth management, banks finally have one..

Among banks valued above $100 billion, Morgan Stanley and UBS have been the top stock-market performers of the past half-decade..

Among top banks in the U.S. and Europe, wealth and asset management arms had an average return on tangible equity of 21% in 2023, compared with a paltry 12% for investment banking..

Digital technology, artificial intelligence and greater access to private markets seem likely to make large wealth platforms increasingly attractive to clients as well, especially for the mass affluent" who have between $250,000 and $1 million in investible assets..

This is why Goldmans ambitious wealth-management foray under Marc Nachmann, who comes from a markets and investment-banking background, seems riskyeven if so far it is going well..

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