Finding Wealth Management Opportunities in the Market Downturn

Published by: Datamonitor

Published: Oct. 9, 2008 - 24 Pages

Table of Contents

DATAMONITOR VIEW

CATALYST

SUMMARY

THE CHANGING CUSTOMER AND COMPETITOR LANDSCAPE

The seismic shocks in the financial world have caused real changes in the nature and attitudes of HNWs, while exposing some major competitor weaknesses

Clients have become more defensive and demanding

The protection of wealth is a key priority for HNWs

Clients are shifting their portfolios towards safer havens

HNWs are increasingly demanding when it comes to their wealth management service

Wealth managers around the world are vulnerable to competition

Wealth managers have not got the basics right in the downturn

The damage to the brands of leading wealth managers makes them particularly vulnerable

Affected private banks face increased dangers of staff defection

EXPLOITING THE MARKET OPPORTUNITIES

There are at least 10 ways for wealth managers to profit in this new environment

Customer acquisition opportunities

Actively recruit good relationship managers from competitors

Raise your public profile by using the media

Leverage customer relationship management to identify HNW clients

Redouble efforts at attracting entrepreneurs

Launch range of 'safe' products

Share of wallet opportunities

Focus on lending to HNWs

Help clients reduce the cost and risk of mortgages

Assist clients to position themselves for the eventual recovery

Increase the level of communication with customers

Educate clients about alternative investments

APPENDIX

Definitions

Capital protected funds

Absolute return funds

Exchange traded product

Methodology

Bibliography

Further reading

Ask the analyst

Datamonitor consulting

Disclaimer

List of Figures

Figure 1: HNWs have become more defensive in nature

Figure 2: The expected change to the allocation of HNW customers' portfolios in two years' time

Figure 3: Wealth managers have focused on housekeeping while the house has been burning

Figure 4: Brand, image and reputation are key in deciding which wealth manager to use

Figure 5: The defection of key staff often precipitates the defection of clients

Figure 6: HNWs are looking for proactive advice

Figure 7: Leveraging CRM is key to attracting new clients

Figure 8: Business/entrepreneurship is particularly important in the emerging economies

Figure 9: HNWs are very focused on protecting their wealth

Figure 10: The importance of financing needs varies between countries

Figure 11: HNWs across the globe are generally open to new ideas

Figure 12: Face to face contact is more important in troubled times

Figure 13: There is a positive correlation between HNWs' financial knowledge and their uptake of alternative investment products

Abstract

• Draws on Datamonitor's Wealth Management Market Leaders Surveys in Europe and Asia Pacific.
• Makes use of extensive secondary research

• Discover strategies for winning in the marketplace.
• Increase share of wallet and attract new customers.

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