Zero-based Budgeting in Wealth Management

This technical report discusses the implementation of zero-based budgeting (ZBB) within the wealth management sector, emphasizing its role in addressing cost pressures, operational complexity, and regulatory demands. The report outlines the importance of transitioning from merely achieving transparency through ZBB to actively executing its outcomes. It presents practical use cases across the wealth management value chain, illustrating how AI, automation, and innovative operational methods can facilitate scalable growth and enhance efficiency. The document details the critical success factors and common pitfalls associated with ZBB, stressing that insights gained from ZBB are only valuable when acted upon. It also highlights the need for a structured approach to transformation, focusing on simplification and automation across various functions, including client onboarding and compliance. The report serves as a guide for wealth management firms aiming to leverage ZBB as a strategic enabler of change rather than a one-off budgeting exercise.