Wealth Management Clients Want Simple and Connected Solutions
New technologies, innovative business models and disruptive brands are changing customers' relationship with the wealth management industry.
Wealth management providers need to better align with what their clients value in order to retain their business and win new ones, international advisory firm Ernst & Young (EY) said in its 2019 Global Wealth Management Research Report.
More people are willing to pay for financial advice, but what clients value is changing rapidly. Additionally, clients now have a large variety of options for wealth management providers, and combined with stronger competition among incumbents and new entrants, firms will need to continuously raise the bar for satisfying client demands, EY said in the report.
Asia-Pacific in a Period of Change
According to EY, banking and wealth relationships are in a period of change in the Asia-Pacific region, where new, emerging digital methods and habits are being driven by fresh digital solutions.
«A significant movement of clients is underway as the percentage of clients expecting to transfer assets is expected to more than double in this region, from 15 percent over the last three years to 34 percent in the next three, particularly in Australia and China,» Mark Wightman, EY ASEAN Industry Leader and APAC Advisory Leader, Wealth and Asset Management, said.
Survey Findings
The survey, which encompassed 2,000 wealth management clients across 26 countries, revealed several findings such as:
- One-third of clients – largely the youngest and wealthiest ones – plan to switch wealth management providers over the next three years.
- Individuals are turning to a diverse and complex mix of providers to help them manage their financial needs.
- Voice-enabled tools and digital assistants are replacing traditional client engagement channels.
- Clients want different pricing models.
- Most clients prefer simple, personalized and connected solutions over individual products and services.
