Across industries, consumers worldwide are changing where they shop, how they discover products, and what they ultimately buy, thanks to new technologies, innovative business models, and disruptive brands. The wealth management industry is acutely experiencing these trends. As the value perceptions of their clients shift, service providers—from firms with rich legacies to innovative new entrants—are faced with new challenges along with opportunities.
To help wealth managers navigate the changes in the marketplace and to deliver enhanced value, ESI ThoughtLab, on behalf of EY, conducted a comprehensive global survey of 2,000 clients in 26 countries. We profiled clients not just by traditional segments, such as age, gender, wealth, and location, but also by level of education, profession, investment knowledge, risk appetite, and psychographic profile. The goal was to understand their changing needs, behaviors, and value perceptions, and to provide actionable insights to service providers.
ESI ThoughtLab also conducted interviews with executives at leading wealth management firms around the world to understand how they are rethinking their value propositions and business strategies.
Among the key findings of the 2019 Global Wealth Management Research Report are the following:
Know what clients want and when. Clients are switching service providers to capture better value. They see the highest overall value for financial advice during major life events and as their wealth and level of investment knowledge increases.
The wealthiest and youngest are most apt to switch. Overall, one-third of clients plan to move money to new wealth managers over the next three years. In their search for value, clients are forming relationships with multiple providers. Independents and FinTechs benefit the most.
Solutions are more important than products and services. Clients want more advice and planning, but many are holding back. Most clients value simple, personalized, and connected solutions over individual products and services.
The future is voice. Client preferences are rapidly evolving toward digital and voice-enabled assistants for managing wealth and receiving financial advice.
Pricing models need to change. Many clients do not trust that they are charged fairly by their provider, and a majority want to pay differently.
To learn more about the 2019 Global Wealth Management Research Report, click here.