wwr_2013_wealthdrivers_0

7/28/2019 WWR_2013_WealthDrivers_0

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World WEAlTH rEporT 2013

In the fist qate of 2013, aond 61% of HNWIs saidthey have tst and confidence in thei wealth managesand fims, an incease of oghly fo and thee pecentagepoints, espectively, fom 2012. Stong tst levels sggestHNWIs hold thei wealth manages and fims in elatively high egad when it comes to thei ability to offe valedadvice and sevice sing fai and tanspaent pactices.

Despite contined economic challenges, 75.4% of HNWIs

aond the globe cited confidence in thei ability togeneate wealth ove the next yea, showcasing the stong optimism HNWIs have in the fte. Sch optimism islikely diven by the high tst levels in thei wealthmanages combined with the high maks HNWIs placedon the competency of thei advisos and sppot staff. Wealth manage competency emeged as the single lagestsevice pioity among HNWIs, with 67.5% ating it asmost impotant. Globally, 52.6% of HNWIs gave thei

advisos and sppot staff a stong pefomance ating inthis aea.

Howeve, the financial cisis has had a significant impacton the indsty’s oveall image, leading to oveall low levelsof HNWI tst in financial makets and eglatos. In thefist qate of 2013, only 45.4% of HNWIs had tst infinancial makets and only 39.6% had tst and confidencein eglatoy bodies and instittions. Tst in Eopean

financial makets was especially low (30.4%), likely divenby ongoing economic ncetainty.

FIGurE 11. HNWI Trust and Confidence Levels in Key Stakeholders, Q1 2013

(%)

RegulatoryBodies &

Institutions

FinancialMarkets

WealthManagement

Firm

WealthManager

19.7%

5.3%3.9%

6.0%

6.1%5.9%

3.2%

12.9%

8.4%9.6%

13.5%35.1%

30.9%

15.1%

15.1%

9.2%12.4%

21.3% 20.3% 61.2%

61.4%

45.4%

39.6%

20.4% 23.9% 17.0%

20.1% 13.1%

6.4%

24.8% 14.3%

6.3%

Somewhat Low

Low

Very Low

Very High

High

Somewhat High

Note: Chart numbers do not add up to 100% as the medium trust values (“Neither High”and “Neither Low”) lying between “Somewhat Low” and “Somewhat High” have not been

shown here; Chart numbers may not add up exactly to total figures due to rounding; Theresponses to the question asked (“Currently, to what extent do you agree or disagreewith the following statements? - I have trust and confidence in the …”) for variousstakeholders listed above were analyzed based on agreement and disagreement to arriveat the percentages for HNWI trust and confidence levels

Source: Capgemini, RBC Wealth Management, and Scorpio Partnership Global HNWInsights Survey 2013

TrusT and ConfidenCe



Despite 75.4% of HNWIs citing confidence in theiability to geneate wealth ove the next yea, a pefeence fo a geneally consevative appoach is widely held. A highe pecentage of HNWIs indicatea focs on wealth pesevation (32.7%) compaed to wealth gowth (26.3%). This tendency towad wealth

pesevation is stonge among olde HNWIs andthose in ppe wealth segments, as 44.8% of HNWIs who hold $20 million and above in investable assetsand 34.8% of those who fall into the 60-pls ageband ae focsed on wealth pesevation.

regional diffeences also exist with HNWIs in theemeging makets of Middle East and Afica elatively moe focsed on wealth gowth. The majoity of

Japanese HNWIs did not show a stong pefeence fo wealth gowth o pesevation, pehaps eflecting anncetain mindset towads thei wealth stategies andleading to lage cash and deposit holdings of 49.4%.

FIGurE 16. Focus on Wealth Growth vs. Wealth Preservation, Q1 2013

(%)

0% 20% 40% 60% 80% 100%

Middle East

and Africa

Latin

America

Japan

Asia-Pacic

(excl. Japan)

Europe

North

America

Global

WealthPreservers

WealthGrowers

No StrongPreference

26.3%41.0%32.7%

27.7%39.6%32.6%

23.3%44.2%32.5%

15.3%60.4%24.3%

31.5%29.6%38.9%

37.7%18.4%43.9%

42.4%24.9%32.7%

Note: Question asked on a 10-point spectrum: Please indicate your focus on growingyour wealth vs. preserving your wealth? “Wealth Preservers” and “Wealth Growers” arepercentage of respondents providing a top three rating across the spectrum extremesfor wealth preservation focus vs. wealth growth focus; “No Strong Preference” are theremaining percentage of respondents with responses near the mid-point on the spectrum

Chart numbers may not add up to 100% due to rounding


WealTh groWTh versus preservaTion




Fo Wealth Manage relationship, we looked at HNWIpefeences aond boad aspects of thei wealthmanagement elationships, sch as whethe they pefe a single toch point o woking with mltiple expets, theipefeence towads seeking pofessional advice foinvestments, and thei feelings abot in-hose podcts.

HNWIs said they pefe to wok with a single wealth

adviso who is accontable fo the oveall elationship andable to coodinate it thoghot the fim. This sppots a finding fom o WWr 2011 Indsty Spotlight onEntepise Vale in which wealth manages believed thatthe most impotant (and nde-seved) vale leve was‘impoved client expeience via the adviso as Single Pointof Contact (SPOC) fo the entepise.’ O 2013 analysisshows this is still the case.

FIGurE 15. HNWI Behaviors and Preferences, Q1 2013

(%)

Preferred Wealth Manager Relationship

34.0% 23.5%42.4%

33.9% 26.9%39.1%

28.4% 27.8%43.8%

Self-ManagedInvestments

Single Touch Point

UncomfortableWith Mostly

In-house Products

Professional Advice

Multiple Experts

ComfortableWith Mostly

In-house Products

Strong Preference forParameters on Left No Strong Preference

Strong Preference forParameters on Right

Note: Chart numbers may not add up to 100% due to rounding


WealTh ManageMenT relaTionship




Fo Wealth Manage Sevice, we stdied HNWIpefeences egading thei day-to-day inteactions with wealth manages, sch as how they pefe to eceive epotsand commnicate with thei wealth advisos.

When it comes to sevice pefeences, o svey fondHNWIs ae looking fo additional levels of conveniencebeyond taditional face-to-face elationships. While a lage

pecentage of HNWIs still place geate impotance ondiect contact, nealy one-qate said that digitalinteactions ae moe impotant. Asia-Pacific (exclding Japan) is leading the way in the desie fo digitalinteactivity, with 38.2% of HNWIs thee placing geateimpotance on digital contact, compaed to 23.8% fodiect.

In keeping with the gowing desie fo digital contact,

moe HNWIs pefe eal-time, anytime epoting vesseceiving pape-based, schedled epots. Howeve,HNWIs place a mch stonge impotance on diect,pesonal contact in the highest wealth segment wheecomplex inteactions ae moe pevalent. In geneal,moving towad eal-time, digital enablement will help wealth manages bette meet evolving HNWI needs.

FIGurE 15. HNWI Behaviors and Preferences, Q1 2013

(%)

HNWI Preferred Wealth Manager Service

44.5% 20.0%35.6%

30.7% 23.7%45.6%

30.9% 26.0%43.1%

26.8% 26.0%47.2%

Direct Contact

Real-Time / Anytime Reporting

Comprehensive

Communication

StandardizedServices

Digital Contact

ScheduledReporting

Filtered

Communication

CustomizedServices

Strong Preference forParameters on Left No Strong Preference

Strong Preference forParameters on Right

Note: Chart numbers may not add up to 100% due to rounding


WealTh Manager serviCe




Th svy indicats a potntial shift fom th taditionalblif that HNWIs gnally xpct and plac gatimpotanc on fac-to-fac intactions. Whil mo HNWIsidntifid dict contact as most impotant, th impotancof digital contact was stong than xpctd, with 23.7% of th global spondnts placing mo impotanc on digitalcontact than dict.

Not spisingly, yong HNWIs xpssd a gatimpotanc in intacting with thi walth managsthogh digital connctions. With th wid polifation of mobil and Intnt-connctd dvics aond th wold, itfollows that digital connctions wold mak in-oads in walth managmnt, paticlaly among yong ag sts.Globally, 29.1% of spondnts nd 40 yas old pfdigital contact, whil only 20.2% pf dict contact.

Th impotanc fo digital contact was mo pominnt inmging makts, spcially Asia- Pacific (xclding Japan) wh 38.2% of th HNWIs viwd digital contact moimpotant, compad to 23.8% pioitizing dict contact.Howv, dict contact mains mo impotant than digitalcontact in oth gions and fo HNWIs in high walthand ag bands. Considing HNWIs’ naow cnt gap of pfnc btwn dict and digital contact and th ising nmb of yong HNWIs in th mging makts, it is

likly a matt of whn, not if, th impotanc of digitalcontact will spass dict fo som sgmnts.

FIGure 19. HNWI Preference for Direct Contact vs. Digital Contact by Age Band, Q1 2013

(%)

Age 60+

Age 50-59

Age 40-49

Under 40

Global30.7%

20.2%

24.0%

32.0%

38.2%

23.7%

29.1%

24.8%

22.9%

21.7%

Direct Contact Digital Contact

Note: Question asked on a 10-point spectrum: Please indicate whether direct andpersonal contact is more important to you than digital contact (internet, mobile, email)vs. digital contact (internet, mobile, email) more important to you than direct and personal

contact?

As we asked for preferences across a 10-point spectrum containing two extreme points,the above numbers in the figure indicate the percentage of respondents providing

top three ratings at each extreme


Direct versus Digital contact

wwr_2013_wealthdrivers_0

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