Wealth Management

Seven Shifting Client Attitudes in Wealth Management

The setting on how wealth is managed has been changing.

If you are not convinced with these changes, you can look at early years of wealth management or the “robo advisors” like system, betterment and personal capital.

The growth of wealth management has captured the attention of experts which resulted to the formation of helpful strategies and unique offerings.

So the question,

why these newly established wealth management firms targeting investors?

This is because the attitudes of the clients on how they manage wealth and invest it are obviously changing.

And as respond to these changes, new firms are adopting the change and in most cases driving into it.

When equity trading online emerged, firms with online systems become more accessible to clients, this business has been categorized into three types of investors:

  1. the self directed,
  2. the delegators
  3. and validations.

The three persons where the people itself, doing things but they want to validate ideas they have with an expert, and those who have been working on it to someone.

As to record, these investor types are still true till the present day. But, when it talks about wealth management, most of the investors expect a client experience both high touch and high tech.

And for new models in the marketplace, wealth manager needs to take into account the seven shifting attitudes of clients.

Allow us to address seven shifting investor attitudes that every wealth management know:

1. Clients Wants involvement and more control

The clients of wealth management on the present day want’ to feel the process, that they are in control of everything even from the start, and be directly involved in the management process till the end.

It includes on boarding, delivery, planning, prospecting, advice and the monitoring stages of the management of the wealth they have. By moving items on client’s experience, just as what banks do in checking your savings accounts, wealth managers address this if needed.

2. Clients Eagerness to know

New generation client are continuously shifting, this time they want to learn things on how their wealth manager do their task, even from the managing of schedules.

Client desires for knowledge based information that can be researched online before finally do the talking with the experts.

Obviously client don’t just want to be sold on some investment strategies and lecture to some method, they want to take the chance for them to personally understand while experiencing it, so on the process they can even ask questions to the wealth manager.

The need to evaluate the methods based from the current situation they have or on the financial data from the manager, they simply want to it also for them to have an experience.

3. Clients would like to work with an expert

So after clients had this feeling of being knowledgeable with the wealth expert, they also want to know how worthy the expert for them to trust.

The traditional advices and models on what advisors shares, this is supported by a subject matter from experts, tools and the technology in supported backgrounds.

The model that has been started will provide rich experience, because this is supported by the advisor every time when needed. The model concerns to what traditional advisors fear being subordinated or dis-intermediated to the technology experience.

4. Clients becoming Financial Savvy

The speedy growth of ecommerce fundamentally changed the traditional understanding on services and products acquired by people, whether those are just airline tickets, new phone, or car insurance.

Ecommerce is now applied on wealth management, there are number of clients have better understanding on the portfolio management research and how those advices diversify a created portfolio when delivered.

Advisor may be perceived by client as effective and smart manager, but in general, clients knows that these management advisers are just using tools, investments products in third party company and a centralized expert advice came from main firms or their superior if there are.

5. Clients pay for importance

The continual update on knowledge in the community greatly increased the insight of clients in terms of the process of wealth management, this also helps them better understand the real value, and of course they can pay for it since they understand the value.

Good planning, monitoring, advice and portfolio construction can be that worth.

On the other hand, new generation clients are more concerned the amount of total fees that they will pay on the assets that are under management when intrusting to a professional and the delivery of the expected pre packed solutions.

6. Clients become digitally proficient

Digital expertise crosses all demographic segments of the clients, those who are accustomed with online experience integration, multi technology applications and platforms.

They can do these even by just using their android phone, laptop and tablet. So it is expected that both of them will have the same know-how with what the wealth manager have.

The desire to easily connect with their wealth advisor at the same time interacts with their friends and business partners. We are not suggesting that they become your friends on Facebook, however, you can imagine the rich experience of the client in which you have direct communication via chat on them using the social media platform.

7. Clients verify and validate expert advice

They trust but they verify, today’s client want to validate and even verify advice that are given to them, and after that they compare performances a with accountants, peers, benchmarks and even other expert professional that is being referred by them.

The key point here is transparency, providing clients easy access to the performance data of the investments and market information creates a peace of mind from clients on their advisor as they believe in everything and there is nothing to hide at all.

The changing attitudes will continue to create disruption of the wealth management, and even in the finance services.

Smart trendsetters now build new companies that will cater these behavioral shifts, and creates a different approach in responding them.

It is exciting for providers to understand different experiences from clients. From this, it enables the company for them to pack up things for investors to trust in their money.


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