Jacques Els, head of wealth and investment at Standard Bank, discussed the rise of first-generation wealth across Africa and said the phenomenon was being driven by three archetypes that shaped distinct client priorities and service requirements.
MAPPING THE NEW WEALTH LANDSCAPE
In commentary carried by Moneyweb SA, Els outlined how demographic and economic shifts had produced a larger cohort of wealthy individuals who did not inherit capital but instead created it through business activity, professional careers or asset ownership. He positioned that cohort as materially different from traditional wealth holders in their objectives, appetites for risk and expectations of financial services providers.
The rise of these new wealth creators forced banks and wealth managers to reassess client segmentation, product design and advice models, Els said. Banks were encountering clients who required a combination of corporate advisory, personal wealth structuring and multi-jurisdictional planning. That combination created demand for integrated service models spanning investment management, cash management, financing and succession planning.
Els framed the conversation in client psychology rather than purely in balance sheet terms. He observed that motivations and attitudes toward wealth determined service needs as much as the size of investable assets. For wealth teams, that meant building capabilities in areas such as governance structures for family enterprises, bespoke lending solutions and advice on reputation management and philanthropy.
PRACTICAL IMPLICATIONS FOR BANKS AND WEALTH MANAGERS
For banks operating in Africa, Els said the implications were operational and strategic. Operationally, relationship managers and advisory teams required deeper sectoral expertise and familiarity with cross-border tax and regulatory frameworks. Strategically, institutions needed to decide whether to scale specialist teams, form partnerships or consolidate services under a single private banking franchise.
Els highlighted that wealth creation on the continent often coincided with concentrated exposures to single industries or companies, creating specific wealth management challenges. Those included managing liquidity for personal needs while maintaining capital tied up in business operations, and structuring wealth to mitigate governance and succession risks. Banks, he said, needed to offer pragmatic solutions that reflected clients' business realities.
Market implications extended beyond product structuring. The growth in first-generation wealth affected capital flows, demand for domiciliation services and interest in investment opportunities on the continent. Wealth managers saw rising interest in Africa-focused allocations as clients sought to retain economic participation in the markets where they had generated wealth. At the same time, the need for international diversification remained an important theme for many clients.
Regulators and policymakers also faced implications, according to Els. As wealth became more broadly distributed, pressure increased on frameworks for tax transparency, anti-money laundering controls and cross-border cooperation. Banks operating across jurisdictions had to adapt compliance and reporting capabilities to manage complex client structures while maintaining service levels.
Within Standard Bank, the emphasis on psychology and client archetypes informed how the wealth unit approached segmentation and product development. Wealth managers were encouraged to combine financial planning with enterprise advisory and to engage with clients on legacy and governance issues earlier in the relationship lifecycle. That approach aimed to reduce friction at points such as business exits or intergenerational transfer of assets.
Els's discussion reflected a broader trend among African financial institutions that were recalibrating wealth management offerings for a new generation of clients. The approach required balancing local market intelligence with global best practice in fiduciary services, discretionary investment management and bespoke advisory.
For institutional investors and banks, the shift signalled both opportunity and complexity. New wealth created a pipeline of investable assets and demand for wealth services, but it also raised the bar for advisory capabilities, compliance infrastructure and cross-border product distribution. Firms that adapted to the psychological and practical needs of these clients stood to capture long-term relationships, Els argued.
Sources: Moneyweb SA