The UK trails behind the likes of the US, Singapore and the UAE when it comes to wealth management, according to a new index from Avaloq.
While the UK benefits from a mature financial ecosystem, supportive regulations and strong digital capabilities, the inaugural Avaloq Wealth Management Index found macroeconomic conditions pose a constraint on its overall competitiveness.
The Index provides a comparison of the factors shaping wealth management activity across 15 selected markets. Drawing on more than 60 indicators, it assesses each market across five key dimensions: macroeconomic conditions, financial market maturity, demographics, regulatory environment, and technology & digital adoption.
It found the UK sits within the middle tier of the overall index, reflecting a mix of significant competitive advantages and broader economic constraints.
While it performs strongest across financial market maturity and regulatory environment, underpinned by the depth of its capital markets, established financial infrastructure and supportive regulatory framework, macroeconomic conditions weigh on its overall index performance, Avaloq said.
Singapore ranked first place overall, performing consistently across all dimensions, followed by the US, UAE, Hong Kong and Switzerland, with the UK ranking sixth.
Suman Rao, managing director, UK and Ireland at Avaloq, said: “The findings highlight the enduring strengths of the UK’s wealth management sector. Strong financial infrastructure, a supportive regulatory framework and advanced digital capabilities continue to provide an attractive foundation for wealth management activity, even as macroeconomic conditions remain challenging.
“For wealth managers, the opportunity lies in building on these strengths through continued investment in technology, operational efficiency and client experience to be better positioned to capture future prospects.”
Looking ahead, Avaloq said success is likely to depend less on any single characteristic or historical advantage and more on how effectively markets combine complementary strengths.
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