Executive Summary
Targeting wealthy customers
Strategies for acquisition and retention
Distribution of wealth management services
Benchmarking wealth managers
Chapter 1 Introduction
Introduction
Report Purpose
Report structure
Targeting wealthy customers
Strategies for acquisition and retention
Distribution of wealth management services
Benchmarking wealth managers
Research methodology
Primary research
IMPACT
Secondary research
Methodology for forecasts
Chapter 2 Targeting wealthy customers
Summary
Introduction
Understanding the nature of a wealthy customer
Sourcing product information
Making the application
After sales service
High earner device ownership
Products and channels
Conclusions
The top tier: ultra high net worths, the UK experience
Earners versus Inheritors
Age of earners and inheritors
The middle tier: high net worths in Europe
Analysis of country dynamics
Concentration of wealth
Further segmentation by country and asset band
The bottom tier - the mass affluents
The mass affluent market
Demographic analysis of the mass affluents
Financial products already held by the mass affluent
Service expectations
Chapter 3 Strategies for acquisition and retention
Summary
Introduction
Lifestage marketing in wealth management
The wealth manager’s advantage
Worksite marketing in wealth management
Introduction
Examples of worksite marketing initiatives in Europe
Close Wealth Management
Sal. Oppenheim
Some recommendations
Customer acquisition in wealth management
Introduction
Target markets
Investment thresholds
Strategies for customer acquisition
Coutts illustrates the pros and cons of a strong reputation
Sponsorship opportunities are broad
Cold calling wealth managers - a sign of the times?
Advertising wealth management services
Seminars are a more subtle but effective approach
Niche marketing
External referrals
Internal referrals
Advisor recruitment
Intermediaries
Consolidation for growth?
Chapter 4 Distribution of wealth management services
Summary
Introduction
Multi-channel strategies
Introduction
Multi-channel management
Development of branch networks
Call centres and websites
Channel costs
Conclusions
Tailoring services to channels
How different companies use different channels
How channel usage varies between countries
Volumes that channels attract
Country differences
Competitor differences
Conclusions
Generating business from referrals
Comparison of referral business
Referrals from internal businesses
Word of mouth referrals
Third party advisors as sources of business
Financial professional referrals
Conclusions
Future development
The future of the branch network
The future of referrals
Internal referrals
Word of mouth referrals
Third party referrals
Referrals from professional services
Companies launching websites and call centres
Development of existing remote channels
Conclusions
Chapter 5 Benchmarking wealth managers
Summary
Introduction
Assets under management
Acquisition drives growth in assets under management
Operating income benchmarking
Operating income growth
Interest vs. fee and commission income
Wealth manager efficiency
Management of expenses growth
The price of good staff
Cost efficiency of wealth management
Changing fortunes
Chapter 6 Appendix
Index
List of Tables
Table 2.1: Preferred channel for getting product information, by total household income
Table 2.2: Preferred channel for discussing an application, by total household income
Table 2.3: Preferred channel for discussing service issues after purchase, by total household
income
Table 2.4: Number of technological devices owned, by total household income
Table 2.5: Preferred method for setting up a bank account, by total household income
Table 2.6: Preferred method for arranging a mortgage, by total household income
Table 2.7: ‘I don’t like having one supplier controlling too high a proportion of what I buy’, by
total household income
Table 2.8: Number of ultra high net worth individuals in the UK
Table 2.9: UK Ultra high net worth individuals
Table 2.10: Source of wealth UK ultra high net worths
Table 2.11: UK Ultra high net worth’s by source of wealth
Table 2.12: Average age of UK ultra high net worths
Table 2.13: Age of high net worth earners and inheritors
Table 2.14: Number of European high net worth individuals by country, 1997-2001
Table 2.15: Aggregate liquid assets of European high net worth individuals by country, 1997-2001
Table 2.16: Number of European high net worth individuals by liquid asset band, 1997-2001
Table 2.17: Aggregate liquid assets of European high net worth individuals by asset band, 1997-
2001
Table 2.18: Number of European high net worth individuals across European countries, segmented
by liquid asset band, 2001
Table 2.19: Aggregate liquid assets of European high net worth individuals across European
countries, by liquid asset band, 2001
Table 2.20: UK mass affluent population by liquid asset band, 1997-2001
Table 2.21: Total liquid assets of UK mass affluent customers by asset band, 1997-2001
Table 2.22: The age profile of the mass affluent, 2000
Table 2.23: Financial products held by mass affluents, 2000
Table 2.24: “What level of service have you received from financial services companies?”, 2001
Table 4.25: Percentage of wealth managers with each distribution channel, by country, Q3 2002
Table 4.26: Percentage of wealth managers with each distribution channel, by competitor type, Q3
2002
Table 4.27: Average number of clients per client facing office, by competitor type, Q3 2002
Table 4.28: Percentage of wealth managers that have increased/decreased the number of client
facing offices in the last 2 years, by competitor type, Q3 2002
Table 4.29: Percentage of wealth managers that have increased/decreased the number of client
facing offices in the last two years, by competitor type, Q3 2002
Table 4.30: Wealth managers’ stated reasons for reducing the number of client facing offices in the
last 2 years, Q3 2002
Table 4.31: Wealth managers’ stated reasons for introducing the new distribution channel, by
channel, Q3 2002
Table 4.32: Average percentage of distribution costs accounted for by each distribution channel in
2001, by country, Q3 2002
Table 4.33: Average percentage of distribution costs accounted for by each distribution channel in
2001, by country, Q3 2002
Table 4.34: Importance of channel for acquiring new customers, by competitor type, Q3 2002 73
Table 4.35: Importance of channel for managing client relationships, by competitor type, Q3 2002
Table 4.36: Importance of channel for handling transactions and account maintenance, by
competitor type, Q3 2002
Table 4.37: Importance of channel for acquiring new customers, by country, Q3 2002
Table 4.38: Importance of channel for managing client relationships, by country, Q3 2002
Table 4.39: Importance of channel for handling transactions and account maintenance, by country,
Q3 2002
Table 4.40: Frequency of website usage, Q3 2002
Table 4.41: Average number of branch visits per year, by country Q3 2002
Table 4.42: Average number of home visits per year, by country, Q3 2002
Table 4.43: Average number of branch visits per year, by competitor type, Q3 2002
Table 4.44: Average number of home visits per year, by competitor type, Q3 2002
Table 4.45: For referrals what proportion of your new clients are referred from other parts of the
company/group?- by country, Q3 2002
Table 4.46: For referrals what proportion of your new clients are referred from other parts of the
company/group?- by competitor type, Q3 2002
Table 4.47: For referrals what proportion of your new clients are referred from existing clients?- by
country, Q3 2002
Table 4.48: For referrals what proportion of your new clients are referred from existing clients?- by
competitor type, Q3 2002
Table 4.49: For referrals what proportion of your new clients are referred from financial
intermediaries/advisors?- by country, Q3 2002
Table 4.50: For referrals what proportion of your new clients are referred from financial
intermediaries/advisors?- by competitor type, Q3 2002
Table 4.51: For referrals what proportion of your new clients are referred from lawyers and
accountants?- by country, Q3 2002
Table 4.52: For referrals what proportion of your new clients are referred from lawyers and
accountants?- by competitor type, Q3 2002
Table 4.53: Future size of branch network over next two years, by country, Q3 2002
Table 4.54: Future size of branch network over next two years, by competitor type, Q3 2002
Table 4.55: Future importance of internal referrals over next two years, by competitor type, Q3
2002
Table 4.56: Future importance of internal referrals over next two years, by country, Q3 2002
Table 4.57: The future of word of mouth referrals over the next two years, by country, Q3 2002
Table 4.58: The future of word of mouth referrals over the next two years, by competitor type, Q3
2002
Table 4.59: The future of third party referrals over the next two years, by country, Q3 2002
Table 4.60: The future of third party referrals over the next two years, by competitor type, Q3 2002
Table 4.61: The future of professional services referrals over the next two years, by country, Q3
2002
Table 4.62: The future of professional services referrals over the next two years, by competitor
type, Q3 2002
Table 4.63: Do you envisage having a dedicated wealth management website in the next 2 years? -
by competitor type, Q3 2002
Table 4.64: Do you envisage having a transactional wealth management website in the next 2
years? - by country, Q3 2002
Table 4.65: Do you envisage having a transactional wealth management website in the next 2
years? - by competitor type, Q3 2002
Table 4.66: Do you envisage having a dedicated wealth management call centre in the next 2 years?
- by country, Q3 2002
Table 4.67: Do you envisage having a dedicated wealth management call centre in the next 2 years?
- by competitor type, Q3 2002
Table 4.68: Growth in importance of channel over next two years, Europe, Q3 2002
Table 5.69: The thirty companies and their categories, 2003
Table 5.70: Financial measures used in benchmarking exercise, 2003
Table 5.71: The benchmark for assets under management, 2001
Table 5.72: Assets under management growth benchmarked, 2000-01
Table 5.73: Operating income, including number of staff and operating income per staff member
benchmarked, 2001
Table 5.74: Operating income 2000 and operating income 2001, with growth benchmarked
Table 5.75: Net interest income, net fee income and the percentage of the total made up of net
interest income benchmarked, 2001
Table 5.76: Fees and commissions income per asset under management benchmarked, 2001
Table 5.77: Operating expenses 2000-01 and percentage change benchmarked
Table 5.78: Personnel expense, staff numbers and expense per staff, 2001
Table 5.79: Cost/income ratio 2000 and 2001 (benchmarked) with percentage point change
Table 5.80: Results 2001 and percentage change from previous year benchmarked
