Ledbury Research, the international market research firm specialising in understanding and engaging High Net Worth Individuals, recently interviewed 500 UK HNWIs to look at the relationship of trust between the wealthy and their wealth managers.
It is apparent from this research – and over 80% of HNWIs say they do trust providers to some extent – that the greater the trust clients place in the wealth management practitioner, the more they are inclined to invest.
Overall, however, the general perception of the financial services industry is not as good, as the 2013 Edelman Trust Barometer suggests that the public’s global level of trust in them is only 50%.
If trust is central to the relationship between HNWIs and their wealth managers, in its Trust Trend report, Ledbury’s analysis showed the two most important elements in establishing this core value are communication and proactivity.
Clear communication, which currently receives low satisfaction rates by HNWIs, should be a top priority and a key contribution by wealth managers. This in turn can only be effective if wealth managers are committed to becoming more proactive on behalf of their clients.
The more proactive elements of the wealth management industry are realizing that if they want to attract investors and to keep them loyal then they need to get better at engaging their clients. As Ledbury’s research points out, clients who entrust their wealth to their providers are giving them control over more than just their money, but also their future choices. Good communication and proactivity, leading to greater trust, can ensure this important long-term relationship is better fostered and maintained.
Source: Ledbury Research
