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Redefining the wealth management customer journey is critical to success, says latest Futurewealth Report

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Scorpio Partnership, Standard Chartered Private Bank and SEI have launched the 2012 Futurewealth Report: A Client Revolution. This third worldwide Futurewealth survey captures insight from 3,300 high-net-worth individuals and finds wealth creators in all regions are less confident about their ability to make money in the coming year.

The report concludes that those who target this elite customer group will have to try harder as these clients will be less willing to part with their hard-earned cash.

The report is part of the ongoing Futurewealth Project undertaken by Scorpio Partnership and sponsored by Standard Chartered Private Bank and SEI. The project is a longterm initiative to uncover the attitudes and expectations of wealth creators around the world. In spite of negative sentiment, this year there was an 83% growth in the number of high-net-worth consumers who took part in the survey. Overall, more than 8,000 high-net-worth individuals have now taken part in the Futurewealth Project, making it one of the largest continuous research studies on this valuable but hard-to-reach customer group.

The Futurewealth Project has been tracking the wealth confidence of international wealth creators since 2009 asking how much they made in the last year and how much they expect to make in the next year. On a 100point scale, confidence for the future has slipped 10 points in the last year, even though actual performance was better this year than last.

Even in Asia, where increasing numbers of Futurewealthy are reporting actual wealth growth, short-term wealth confidence has fallen back seven points. The gap between actual and expected performance is also narrower for those in this region, implying a more cautious optimism.

As the Futurwealthy become more conservative about money, the report looks at how high-end firms can tailor the customer experience to ensure they continue to attract and hold on to this valuable client group. It finds on average, clients spend USD17,300 on major purchases or donations and take 43 days to decide. While generally firms deliver a customer experience that is 10% better than their Futurewealthy clients expect, more focus on staff efficiency and smooth order processing would ensure a more consistent customer experience.

Additionally, if firms want to provide a tailored customer experience using client segmentation approaches, the attitudes of the Futurewealthy differ most by age, behavioural profile and geography, rather than by wealth level, gender or whether individuals are executives or entrepreneurs. Understanding the nuances between Generation X and Generation Y would enable firms to deepen their connection with existing clients, as well as more effectively manage client retention on the death of the primary wealth holder.

“The Futurewealth Project is continuing to pioneer the way to a customer revolution, where companies are able to deliver consistently on the promise of tailored and personal service. More than 8,000 high-net-worth individuals have now taken part in the Futurewealth Project. With this unprecedented volume of information about customer behaviour we can now see how different groups of wealthy individuals think and act when making decisions about spending, investing and giving away their money,” says Sebastian Dovey (pictured), managing partner, Scorpio Partnership.

“It is encouraging to find in this research that private banks are meeting and beating client expectations in spite of the many challenges of recent years. However, more can and should be done. Beyond the initial marketing and hospitality touch points, private banks also need to focus on the transactional steps throughout the entire client journey. It is this longterm, consistent focus on delivering above and beyond every step of the way that will be crucial to deepening our engagements with the clients we serve today. We hope this research will continue to inspire new thinking about how we can achieve this for each of our clients,” says Shayne Nelson, Global Head, Standard Chartered Private Bank.

“Many of the Futurewealth themes sync with our own experience of working with private banks and wealth managers, in that they want better and more efficient ways of handling and processing transaction and client data. We genuinely believe that technology can be used to power the client experience of financial services and this report provides plenty of food for thought on what the future of that experience might be,” says Joseph P Ujobai, Executive Vice President, SEI Global Wealth Services.

The Futurewealth Project was launched in 2009 as an annual initiative to investigate the attitudes and buying preferences of the world’s upandcoming wealthy. As ambitious wealth accumulators, the Futurewealthy will become the most prized customers of the future. On average they are worth USD2 million today with a target to triple or quadruple that wealth within 10 years. The objective of the research is to understand what makes this customer group tick today so that highend business can prepare and adapt for the future.
 

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