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This cohort wants financial (investment management and tax planning) and non-financial (philanthropy, concierge services, passion investments and networking opportunities) value-added services, creating potential revenue opportunities for wealth management firms.
With the Great Wealth Transfer underway, aging UHNWIs want their advisors and wealth firms to support them in this and provide greater personalization of advice to align with their changing financial situation.
UHNWIs are also using more wealth management firms (an average of seven in 2023 compared to three in 2020) and more than half want to set up a family office and need help from their primary advisory firm to assist in this.
“Clients are demanding more from their wealth managers and the stakes have never been higher. There are active steps firms can take to engage and retain clients for a personalized, omnichannel experience as the great wealth transfer unfolds and growth of HNWIs continues,” said Nilesh Vaidya, Global Industry Head of Retail Banking and Wealth Management at Capgemini. “While the traditional way of profiling clients is ubiquitous, the application of AI-powered behavioral finance tools, using psychographics, should be considered. They can offer a competitive advantage by understanding individuals’ decision-making to deliver a greater degree of client intimacy. The creation of channels for real-time communication will be crucial to manage biases that sudden, volatile market movements might trigger.”
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