<\/p>\n
Rising costs, revenue competition to drive search for added scale.<\/p>\n
Amid rising costs and competition, the European wealth management sector is ripe for further consolidation, says Fitch Ratings.<\/p>\n
In a report published Thursday, the rating agency said firms in the wealth and asset management sector are facing an array of challenges to their bottom lines, including intensifying competitive pressure on fees and rising costs due to higher technology and compliance demands \u2014 alongside growing external competition for net inflows.<\/p>\n
\u201cProfitability will be under most pressure at firms focused on higher-margin active asset management products for mass retail clients, as these clients increase their allocation to lower-margin exchange-traded funds, passive investment products and bank deposits,\u201d the report said.<\/p>\n
Against that backdrop, Fitch is expecting further consolidation in the sector as firms seek added scale and increased diversification to cope with these forces \u2014 in an effort to mitigate the impact of weaker inflows and potential market declines.<\/p>\n
Despite these challenges, the rating agency said it expects European wealth and asset managers \u201cto remain some of the most resilient financial institutions\u201d in the year ahead.<\/p>\n
\u201cTheir stable credit profiles, underpinned by generally low leverage, sound profit margins, and resilient assets under management, contribute to the sector\u2019s resilience to the current economic environment,\u201d it said.<\/p>\n
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Rising costs, revenue competition to drive search for added scale. Amid rising costs and competition, the European wealth management sector is ripe for further consolidation, says Fitch Ratings. In a report published Thursday, the rating agency said firms in the wealth and asset management sector are facing an array of challenges to their bottom lines, […]<\/p>\n","protected":false},"author":1,"featured_media":3631,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3630","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bez-rubriki"],"featured_image_src":{"landsacpe":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2025\/03\/Global-economy-62-1140x445.jpeg",1140,445,true],"list":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2025\/03\/Global-economy-62-463x348.jpeg",463,348,true],"medium":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2025\/03\/Global-economy-62-300x200.jpeg",300,200,true],"full":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2025\/03\/Global-economy-62.jpeg",2000,1333,false]},"_links":{"self":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/3630","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/comments?post=3630"}],"version-history":[{"count":1,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/3630\/revisions"}],"predecessor-version":[{"id":3632,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/3630\/revisions\/3632"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media\/3631"}],"wp:attachment":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media?parent=3630"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/categories?post=3630"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/tags?post=3630"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}