According to the World Wealth Report 2013, 60% of high-net-worth clients have expressed a high degree of trust in both their wealth managers and their firms.
Over half of high-net-worth clients – 52.6% – prefer a one-stop-shop and to work with a single firm to manage all of their financial needs, according to the report, a snapshot of global wealth by Capgemini and RBC Wealth Management.
As well as clear client communications that outline value proposition cost of services and high fiduciary standards, the report found a number of other opportunities for wealth management firms to improve their client services — including improved technology in such areas as reporting and risk management, as well as redesigned processes for onboarding and wealth manager training.
According to the report, the greatest single challenge wealth managers must deal with in the future will be the high volume and cost of regulatory change. The rapid pace of change is transforming the industry, the report found, sparking consolidation and transforming service models.
Personnel, documentation, infrastructure and opportunity costs are all expected to rise as a result of regulation, while non-compliance could bring fines, a ban on business activities, additional legal costs and harm to a firm’s reputation resulting in lower brand value, client and employee attrition and a negative impact on the stock price.
“Helping wealth managers to understand how to effectively discuss and navigate the regulatory changes with clients is an opportunity to differentiate,” the report said.
Source: Royal Bank of Canada/Capgemini/Financial-Planning.com
