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The paper came in response to data that suggested the number of high net worth individuals had risen at a rate of 8.3 per cent in 2006, to reach 9.5m globally.

Firms need to minimise costs and optimise capital allocations to improve what is essentially a fragmented industry, SEI said.

Rather than the traditional outsourcing model, most organisations should consider co-sourcing, SEI claimed, describing it as "a highly collaborative, strategic, flexible partnership designed to achieve sustainable growth by enabling critical capabilities".

Joseph Ujobai, executive vice president of private banking at SEI, said: "It is clear that transformation of the traditional models is needed, and this evolution cannot be accomplished through today’s concept of outsourcing, which is defined as the purchase of necessary products or services from an outside provider to increase efficiency.

"The co-sourcing model we’ve outlined in the white paper involves an unprecedented degree of collaboration, sharing and learning, not only between the wealth manager and their client, but also in the partnerships of wealth management businesses themselves."