how wealth managers/family offices should engage nextgen uhnw/hnw
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Learn more about HNW trends in wealth management and family office. How can you run a multi-generational practice to meet the needs of babyboomers and next gen! This was my presentation in Shanghai January/2014TRANSCRIPT
Adapt or DieHow to profit from a financial services future that is younger, more global, more regulated and more networked.
Second Annual Offshore Financial Investment & Wealth Management Summit, 16th of January 2014, Shanghai.
April RudinApril Rudin is the founder of The Rudin Group, a
wealth marketing firm that helps financial services
firms attract the high-net-worth clients they deserve.
A recognized expert in UHNW/HNW financial services marketing:
Frequent public speaker for groups such as the Family Office Exchange (FOX), Tiger 21, and
industry conferences.
Frequent contributor to Huffington Post, Family Wealth Report and many other publications on
wealth, next gen and technology.
Chair of HNW Advisory Board for the HFA (Hedge Fund Association).
Member of Advisory Board for PAM (Private Asset Management).
Financial services firms face
Regulatory BurdensDemographic ShiftsTechnology Hurdles
The Game Plan
Cultivate Next-Gen Clients Maintain Retirement-Age Clients Provide Transparency Invest in Digital Technology and Social Media
Capitalizing on Regulation
Turn integrity, transparency and ethics into the cultural pillars of your business—not just in the boardroom, but among your employees.
A Call to Action
“we do it this way because we always have…”
must be replaced by
“We do it this way because it is the right thing to do - and we still make money”
A Tectonic Shift
Wealth transfer to inheritors thru 2052:
98% of inheritors switch advisors.
U.S.: $18 trillion Asia-Pacific: $6+ trillion
Stuck in the Past
Marketing & services of yesterday
Marketing & services of today
Golden Oldies
Baby Boomers (Born post WWII to mid ’60s)
Trust in authority
Belief in experts, specialists
Prefer in-person, local expertise
Like to “be served”
Value reliability, longevity
Bigger is better
Loyal/reluctant to “disrupt” relationships
Peer advice = word of mouth
Kids Today
Gen X & Gen Y(Born late ’60s to mid ’90s)
Don’t trust “suits” post-2008
Confident, educated
Global/mobile and technology oriented
Value community, authenticity
Like to have “self-serve” option
Smaller is better
Want transparency in fees, reporting
Peer advice = social media
Next Gen Competition
Non-traditional web-based advisory companiesNew media information providers Luxury/leisure service providers
Playing Catch Up
Affluent Investors:34% use social media for personal finance and actual investing24% have changed investment providers or reallocated investments due to social media.
Global wealth managers/financial services firms are far behind their clients in digital and social media adoption.
HNW Investors25% seek investment advice from social media.
AsiaPac Digital Heavyweights
Affluent Investors:
40% of HNW prefer digital contact over face-to-face or phone.
28% of Internet users would buy a brand if a friend "liked" it on a social networking site.
Only 50% of Chinese believe you have to be cautious online.
Technology Rising
Wealth managers predict that:
Their use of social networks will climb 40% by 2014
Mobile & tablets will account for 85% of CRM technology
Marketing Spend By Channel
Brochures & Sales tools (28%)
PR, Media & Print (28%)
Offline Events(18%)
Digital & Social (19%)
Digital & Social (38%)
Brochures & Sales tools (11%)
Offline Events(20%)
PR, Media & Print (31%)
20142009
Social Media’s Reach
Financial services firms can use social media to:
conduct product/service research
deliver branded messaging
vet referrals & source referrals
create compelling digital profiles
publish content and thought-leadership
Q&A + Discussion
