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Published by: Datamonitor
Published: May. 23, 2003 - 32 Pages
Table of Contents
INTRODUCTION
Catalyst
Methodology
MARKET CONTEXT
What are lifestyle services?
An emerging trend?
Current state of play
Demand side drivers
Supply side drivers
Who is offering lifestyle services?
A wide variety of companies are seeking to offer lifestyle services
…but they need not be direct competition for wealth managers
Suitability for wealth managers
Potential benefits
Market conditions require the development of alternative revenue lines
Lifestyle services also have important defensive qualities
A tool for deepening client knowledge
Improving customer loyalty and the perception of service are key benefits
Potential difficulties
Cultural barriers may need to be negotiated
Subject to the performance of a third party
Perception of trying to push additional unwanted services
The risk of brand dilution in expanding into areas outside of financial services
STRATEGIC APPROACH
Overview
Delivering lifestyle services
Strategic options
Lifestyle Service Provider: Developing their own lifestyle services
Main advantages
Main drawbacks
Implications
Lifestyle Service Coordinator: Building up a network of third party providers
Main advantages
Main drawbacks
Implications
Lifestyle Service Partner: Outsourcing to a full service lifestyle services provider
Main advantages
Main drawbacks
Implications
Lifestyle Service Connector: Linking up with credit card providers
Main advantages
Main drawbacks
Implications
Marketing lifestyle services
Key selling points
Target Markets
Expatriates have strong needs based around time, information and trust
Luxury asset acquisition services will be mainly the preserve of the wealthiest clients
Landowners are a strong target for real estate services
Marketing and branding approach
Lifestyle services must be carefully positioned in the offering
Sensitive delivery from a trusted source is key
Seamless integration of financial and lifestyle services should be the ultimate aim
Case studies: potential partners
A range of credit card providers offer lifestyle services possibilities
A&K Registry’s Privilege Portfolio offers a comprehensive range of luxury lifestyle services aimed at the upper end of the wealth market
VIP Desk offers companies a customer loyalty program based around lifestyle services
Case studies: wealth managers
Coutts opens up travel and concierge services to its clients through the World Signia card
HSBC Republic offer property services through subsidiary Property Vision
Lasalle Bank offers a concierge service to its wealth management customers
Barclays Private Clients offers concierge services for some of its international customers
UBS Private banking offers a range of art advisory services
ACTION POINTS
APPENDIX
Further reading
Datamonitor Reports
Datamonitor Global Wealth Service: Strategic Briefs
Datamonitor Global Wealth Service: Competitor Tracking
Do you need further information?
Datamonitor financial services consulting
SPP writing team
List of Tables
List of Figures
Figure 1: There is an extensive range of lifestyle services available
Figure 2: The different options for wealth managers seeking to offer lifestyle services
Figure 3: Datamonitor’s Four Gap Theory: the four gaps that lifestyle services seek to bridge
AbstractIntroduction:
Datamonitor’s brief, Incorporating lifestyle services into the wealth management proposition, assesses the merits and drawbacks for wealth managers seeking to offer their clients such services. It evaluates the current market context, customer receptiveness and explores the range of strategic options open to wealth managers for marketing and delivering these services to their wealthy clients.
Scope:
* Provides an overview of the lifestyle services market place and evaluates the suitability of offering lifestyle services for wealth managers
* Highlights the advantages and disadvantages of four different strategic approaches for delivering these services to clients
* Provides a number of case studies and examples of potential lifestyle services partners and current wealth managers' lifestyle offerings
* An issue-based brief with geographic coverage including the UK, Europe and the US
Report Highlights:
The increasing tendency for wealth managers to offer lifestyle services is being driven by a number of factors including an increasingly busy and demanding customer base, technological development, increasing aggregation of lifestyle service suppliers, reduced customer loyalty and increasing competition between wealth managers
There a series of potential benefits for wealth managers in offering lifestyle service including improving and diversifying revenue flows, increased customer insight, greater customer loyalty, and a stronger perception of customer service, but there are also a number of drawbacks that need to be avoided
Datamonitor believes that relationship managers are likely to be the key sales channel for lifestyle services and will also play a major role in adopting an integrated view of clients financial services and lifestyle needs and the various links between them
Reasons to Purchase:
* Independent analysis of the benefits and drawbacks allows wealth managers to make an informed decision about whether to offer lifestyle services;
* A detailed assessment of the strategic options delivers clear insight into the implications of diffferent approaches to offering lifestyle services;
* Competitive examples provide wealth managers with ideas for partners and the development of their own lifestyle services offerings.
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