.This paper outlines how the private banking and wealth management (PBWM) sector contributes to the UK’s economy, and how the Government can further enable the sector to support national growth and drive better financial outcomes for consumers.

Drawing on interviews with Chief Executives and senior leaders from across the PBWM sector and data from PIMFA, UK Finance, and KPMG, the report reflects a broad industry consensus on the sector’s current growth opportunities and challenges.

The PBWM sector plays a significant role within the UK economy, supporting both individual financial well-being and broader national economic goals. This sector manages over £1.6tn in assets, employs over 60,000 individuals within the UK, and provides tailored financial support to over 4 million UK clients.

The sector has a clear role in supporting the Government’s growth agenda, which broadly aims to contribute to increasing the nation’s productivity and competitiveness, raising living standards, and providing
funding for improving public services.

We welcome the recent initiatives from the Government and regulators in the context of the growth and competitiveness agenda and the strong signal they send. While these initiatives are laying the groundwork for the sector to support the Government’s growth agenda, the sector’s contribution can be further increased.

To support the Government’s focus on growth, this paper identifies four of the most important areas of focus in the context of its upcoming Financial Services Growth and Competitiveness Strategy:

• Policy and Regulatory Environment
• Business and Client Outcomes
• Tax and Incentivisation
• Financial Literacy

By acting in these areas, the Government can further empower the PBWM sector to play a greater role in delivering investment, resilience and prosperity across the UK – driving productivity, boosting tax revenues, and enhancing the country’s competitiveness in a global financial landscape.

PIMFA, UK Finance, and KPMG would like to thank the interviewees and their firms for dedicating their time and input to developing this paper.