Customer retention in wealth management 2009

Content

• Datamonitor View
• Catalyst
• Summary
• Analysis
  • Customer retention is a key strategic issue in the wealth management business today
  • Customer retention needs to be a defined business strategy
  • There are differing risks associated with HNWs leaving their wealth manager to manage their own money or to find another wealth manager
  • Wealth managers need to get to know their customers in order to improve retention
  • Wealth management service implication: HNWs are a diverse group and 'one size will not fit all'
  • Wealth managers need to understand the determinants of HNWs' choice of provider
  • Features of the wealth management firm outside of service most influence HNWs' choice of provider in both Europe and APAC
  • European wealth managers need to focus on the financial stability of the company
  • Wealth management service implication: Actively raise with clients their concerns about financial stability
  • A country specific analysis shows that Europe has a significant variation in choice of provider determinants
• Apac Wealth Managers Need to Concentrate on Raising The Brand, Image and Reputation of Their Firm in The Minds of Hnw Clients
  • A country specific analysis shows that there is a marked variation in choice of provider determinants
  • Wealth management service implication: Wealth managers can proactively enhance their level of personal service to help the image of the firm
  • Brand equity is important for the retention of customers in wealth management
  • Although the reputation of a firm dominates investors' concerns, service aspects of the wealth management business are also important to HNW clients
  • Wealth management service implication: Wealth managers should aim to raise the bar and educate clients more about investment matters
  • Innovative example from Switzerland: UBS is investing in educating its clients
  • in both Europe and APAC, wealth managers should be careful to give correct analysis and insight to retain their HNW clients
  • in the downturn, wealth managers know that they need to not make errors to retain their HNW clients
  • in both Europe and APAC, several points of client contact within the bank is also important to retain customers, as is resolving issues efficiently
  • Wealth management service implication: wealth managers can deliver superior returns by broadening their clients' horizons and holdings
  • Innovative example from the UK: HSBC hosts emerging markets investment seminar for its Premier customers
• Hnw Clients Are Concerned about Their Portfolio Performance
  • Wealth managers need to maintain frequent contact with their clients as they steer them towards new investment opportunities
  • Telephone contact is maintained more frequently in APAC than in Europe
  • Face to face contact is also maintained more frequently in APAC than in Europe
  • Wealth managers need to be innovative in their contact with clients to build a strong working relationship
  • to effectively retain clients, wealth managers need to really get to know their clients
  • There are regulatory requirements that necessitate wealth managers getting to know their clients
  • Getting to know clients goes beyond capture of data to support regulatory requirements
  • Innovative examples from around the globe where wealth managers create special events to get to know their clients better
  • The Private Banking and Wealth Management Australia conference
  • The Glenmede Trust uses common interests to bring current and potential clients together
• Appendix
• Methodology
• Wealth Management Market Leaders Survey 2009
• Bibliography
• Further Reading
• Ask The Analyst
• Datamonitor Consulting
• Disclaimer
• List of Tables
  • Table 1: Please rate your high net worth clients' characteristics
  • Table 2: What will determine HNWs' choice of wealth management service over the next 2 years?
  • Table 3: What is the best way to retain HNW clients today?
  • Table 4: When you speak with your HNW clients, what do they most want to discuss?
  • Table 5: How frequently on average do you have telephone contact with your HNW clients?
  • Table 6: How frequently on average do you have face to face contact with your HNW clients?
• List of Figures
  • Figure 1: HNWs in APAC are more likely to leave their wealth manager to manage their own money
  • Figure 2: in Europe, German HNWs are most likely to leave to find another wealth manager and least likely to leave to manage their money on their own
  • Figure 3: in APAC, Hong Kong HNWs are most likely to leave their wealth manager to manage their money on their own and least likely to leave to find another wealth manager
  • Figure 4: Features of the wealth management firm external to service most influence HNWs' choice of provider in both Europe and APAC
  • Figure 5: in Europe, the financial stability of the company is the most important determinant of HNWs' choice of wealth manager
  • Figure 6: in Asia Pacific, the brand, image and reputation of the firm is the most important determinant of HNWs' choice of wealth manager
  • Figure 7: in both Europe and APAC, wealth managers should be careful to give correct analysis and insight to best retain HNW clients
  • Figure 8: Wealth managers in Europe need to ensure that they do not make errors in order to retain HNW clients
  • Figure 9: Wealth managers in APAC need to ensure that they resolve client problems as efficiently as possible
  • Figure 10: HNWs in Europe and Asia wish to talk with their wealth managers about portfolio performance
  • Figure 11: European HNWs are concerned about the performance of their portfolios and anxious about the future
  • Figure 12: HNW investors in APAC are concerned with the performance of their portfolios but are also looking for investment opportunities in the current market
  • Figure 13: Wealth managers in APAC are more likely to have weekly telephone contact with their HNW clients than their European counterparts
  • Figure 14: Wealth managers in Germany, Italy and France lead the way in Europe for weekly telephone contact with their HNW clients
  • Figure 15: Wealth managers in India, Hong Kong and Australia are more likely to have weekly telephone contact with their HNW clients than wealth managers in other APAC countries
  • Figure 16: Wealth managers in APAC are more likely to meet with their HNW clients on a monthly basis than is the case for their European counterparts
  • Figure 17: Quarterly meetings between wealth managers and HNW clients are most likely in Europe
  • Figure 18: APAC is divided between monthly and quarterly meetings between wealth managers and HNW clients