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Cisco wealth management study unveils USD18.6bn revenue opportunity for financial services firms


Wealthy under-50 investors have emerged as a vital market opportunity for financial services firms, which are struggling to find growth following the worst financial crisis since the Great Depression, according to a new survey conducted by Cisco’s Internet Business Solutions Group (IBSG).

IBSG, Cisco’s global consultancy, surveyed more than 1,000 wealthy US investors – those with at least USD500,000 in investable assets – and found that North American financial services institutions have a USD18.6 billion revenue opportunity by adapting a competitive approach to wealthy under-50s. With 63 per cent of wealthy under-50s potentially willing to move some of their assets to a firm that provides enhanced capabilities, such as high-definition video meetings in the office, more than USD2.2 trillion in assets could be "in play" in North America alone. Additional technology-enabled capabilities include home-based video (such as web-cam and high-definition video conferencing), tablet PC, and video messaging.

The Cisco IBSG study assessed the investment attitudes of wealthy investors; their relationships with financial advisers; and how they prefer to interact with financial advisers and financial services firms. With the financial crisis still posing many challenges, Cisco IBSG found that wealthy investors as a whole (all age segments) are concerned about their financial future, and are more skeptical to the efficiency of the financial markets.

The survey found though, that wealthy under-50s frequently use technology and therefore demand faster and more convenient ways of interacting –beyond in-person meetings, phone and e-mail. Wealthy under-50s are challenging wealth management firms to deliver interactions via the most effective and convenient method. They want new services that meet their needs, which include technological advancements for meeting with financial advisers, access to specific expertise, and investment research.

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