Avaloq, a tech provider to private banks such as HSBC, Deutsche Bank, Barclays and Edmond de Rothschild, released its Wealth Management Index today. It reveals a new geography of wealth management as modern markets pull away from traditional European powerhouses.

The latest Wealth Management Index from Zurich-headquartered Avaloq reveals that the US, Singapore and the United Arab Emirates rank ahead of the UK. Drawing on more than 60 indicators, the index assesses each market across five key dimensions: macroeconomic conditions, financial market maturity, demographics, regulatory environment, and technology and digital adoption.

The index compares factors shaping wealth management activity across 15 markets: Belgium, Germany, Hong Kong, Italy, Japan, Luxembourg, Malaysia, the Netherlands, Singapore, Switzerland, Thailand, the US, UAE, UK, and Vietnam. 

Rather than measuring market size or assets under management, the index evaluates the underlying conditions that support long-term wealth management activity, offering a comparative view of each market’s structural competitiveness, Avaloq said.

Such indices can feed into ideas about whether wealth managers, looking at international expansion and strategy, should increase resources in particular markets, including hiring staff, shut or open booking centers, and make other moves. This jostling for pre-eminence is a feature of globalization. Earlier this year, data from Boston Consulting Group showed that Hong Kong has now edged ahead of Switzerland as the world's largest cross-border financial hub. Singapore is in third spot, and the US is in fourth. 

Singapore performs consistently across all five dimensions, the US stands out for the depth and participation of its financial markets, while the UAE benefits from favorable demographics and high levels of digital adoption.

Established financial centers such as the UK, Switzerland and Luxembourg continue to benefit from mature financial sectors and regulatory frameworks, while markets such as Singapore and the UAE illustrate how balanced performance of growth drivers can also create attractive wealth opportunities, the report found.

UK profile highlights strengths and constraints
The UK sits within the middle tier of the overall index, reflecting a mix of significant competitive advantages and broader economic constraints, the firm said.

Its strongest performance comes from financial market maturity and regulatory environment, underpinned by the depth of its capital markets, established financial infrastructure and supportive regulatory framework. The UK also performs strongly in technology and digital adoption, reinforcing its position as one of the most advanced wealth management centers.

However, the findings show that a sophisticated financial system does not necessarily translate into equally strong macroeconomic conditions. While the UK scored highly for the maturity of its financial system, comparatively weaker macroeconomic indicators weigh on its overall index performance. The UK is not unique in this regard. Other wealth management centers, including Hong Kong, Switzerland and Luxembourg, also display distinct combinations of strengths and constraints. (The cost of living is high in Switzerland, for example.)

“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,” Suman Rao, managing director, UK and Ireland at Avaloq, said. “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.”