For the old offshore centers, it is a question of renewing the Customer experience and implementing differently the dogma of “UHNWI”

The strengthening of tax cooperation, the establishment of tax harmonization projects (ex BEPS project) and the fight against tax evasion, have once again modified the existing balances and required an adaptation of the players in place.

The disappearance of the border between offshore and domestic places has helped to create a more competitive and integrated market. The response of the wealth management players in Luxembourg was to target a UHNWI segment, a strategy or even for some a dogma, which for the time being has only obtained qualified results in terms of profitability of assets and value growth:

• LIn February 2020, Statec posted its indicator reflecting the change in Gross Value Added for private banks active in Wealth Management at -59% over the period 2015-2018; ;
• The profitability of Wealth Managers in Europe estimated by Deloitte has fallen by nearly 40% over the last 20 years despite asset growth of 60%; ;

Focusing on this mantra-repeated customer segment doesn’t seem to be paying off. It is therefore necessary to think about an adaptation of this strategy and the means of implementation of a linkage with the creation of a commercial device on a European scale based on an ecosystem-type cooperation in order to attract more diversified segments ( Tributary).