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

The latest Wealth Management Index from Zurich-headquartered Avaloq finds that the UK ranks behind the US, Singapore and the United Arab Emirates across a range of measures and is in the Index’s so-called "middle tier." Drawing on more than 60 indicators, the index assesses each market on five key dimensions: macroeconomic conditions, financial market maturity, demographics, regulatory environment, and technology and digital adoption.

The index provides a data-driven comparison of the factors shaping wealth management activity across 15 selected markets. These include Belgium, Germany, Hong Kong, Italy, Japan, Luxembourg, Malaysia, the Netherlands, Singapore, Switzerland, Thailand, the US, the UAE, the 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.

The index highlights that leading markets achieve strong outcomes through different combinations of structural advantages. 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 favourable demographics and high levels of digital adoption.

Established financial centres 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 figures are likely to be seized on by critics of UK tax and wider economic policy who say that the country has become increasingly inhospitable for HNW individuals and businesses, citing developments such as rises in tax and the ending of the UK's centuries-old resident non-domicile system. Against that, it could be argued that other, once less potent financial hubs have caught up, fuelled by a rising affluent middle class in regions such as Asia.

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, changing booking centres, and other moves. This jostling for pre-eminence is a feature of globalisation. 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. 

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 centres.

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 leading wealth management centres, including Hong Kong, Switzerland and Luxembourg, also display distinct combinations of strengths and constraints. The findings reinforce that wealth management opportunity is shaped by multiple structural factors rather than excellence in any single area, the firm continued.

“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.”

Looking ahead, the firm highlighted that success is likely to depend less on any single characteristic or historical advantage and more on how effectively markets combine complementary strengths. The index shows the importance of looking beyond headline rankings to understand the factors that underpin long-term market competitiveness.