Table of Contents
OVERVIEW
- Catalyst
- Summary
- Methodology
EXECUTIVE SUMMARY
- Santander is one European bank that has weathered the storm with a
cohesive identity
- Spanish HNW investors have acted more defensively over the past months
- Spanish HNW investors are looking for their wealth managers to be proactive
- Spanish HNWs want guidance, but will seek more adventurous investment
products in two years' time
SPECIAL FEATURE: THE RISE AND RISE OF SANTANDER
- The turmoil of 2008 has wrought havoc on banks all over the globe
- There have been significant changes among the top global wealth managers
- Santander' s wealth management business is generally well regarded by
wealth managers in Spain
- However, the standing of Santander is regarded as more modest by Spanish
wealth managers
- Santander' s product and service capabilities are well regarded by
Spanish wealth managers
- The quality of Santander' s service capabilities are well regarded by
Spanish wealth managers
- Spain' s banks have largely weathered the storm... so far
- Spanish regulations require higher reserves than has been the case in
other countries
- Santander has a growth model that can be emulated
- In 2008, Santander boosted its presence in the UK by creating Santander
Private Banking UK
- Santander has key strengths underlying its expansion, which others in
the industry recognize
SPAIN' S WEALTH
- Spanish households play it safe and maintain their savings levels, but
still do not manage to increase their net financial assets
- The financial assets of Spanish households deteriorated over 2008
- Spain' s wealth is being driven by a good rate of household savings but
there should be some concern about rising debt levels
- Savings by households in Spain are adequate but debt levels are set to
increase further, putting a brake on wealth expansion
- The Spanish BME Exchanges lost the same percentage in value as other
European exchanges in 2008
- Spanish household balances have moved significantly away from equities in
favor of deposits
- Spanish households show an inclination toward more safe investments
- Wealth Data in 2009
THE SPANISH HNW INVESTOR
- Spanish HNW investors are cautious and need guidance from their wealth
managers
- Spanish HNW investors have moved away from equities and into cash
- Over the next two years, investors will cautiously start to return to
asset classes currently out of favor
- Spanish HNWs demonstrate an appetite for risk but are lacking knowledge of
financial products and consequently rely on their wealth managers
- HNWs exhibit an above average appetite for risk, but are somewhat
confused about the impact of the market turmoil on their investment
portfolios
- Spanish HNWs are loyal to their wealth managers; they are much more
likely to leave to manage their money on their own rather than defect to
another wealth manager
- Spanish HNW investors are overwhelmed by the current uncertainty
- Clients are clearly seeking guidance from their wealth managers
- In two years' time, HNWs will still need some guidance from their wealth
managers across a range of investments
- Spanish investors are looking toward an advisory asset management
service from their wealth managers
- Within an overall desire for guidance from their wealth management
service, Spanish HNWs are seeking more adventurous investment products in
two years' time
THE SPANISH WEALTH MANAGER' S VIEW
- There are three key areas where wealth managers are focusing their
resources in two years' time
- Paying attention to brand, image and reputation and being proactive in
introducing clients to investment ideas are the best routes to customer
acquisition
- Wealth managers can proactively enhance their level of personal service
to help the image of the firm
- Wealth managers in Spain see personal relationships as their biggest
strength and brand, image and reputation as their biggest weakness
- Spanish wealth managers believe that the way to increase share of wallet
is to focus on an enhanced product range
- The key to increasing share of wallet is to encourage clients to hold
more products
- Wealth managers need to give clients several points of contact within
the bank in order to be successful at retaining HNW clients
- Wealth managers in Spain are more likely to talk to their clients by
telephone less than other European wealth managers, with investors mostly
wanting to talk about their portfolio allocations
- Spanish clients are being contacted by phone less frequently than in
other countries
- Spanish wealth managers are better at getting in front of their clients
- Overall Spanish HNWs mostly want to talk about their portfolio
allocations when they speak to their wealth manager
APPENDIX
- Definitions
- The drivers of growth in the wealthy population
- Income growth (combined with inflation, changes in GDP by sector,
household savings rates and debt levels)
- Investment returns (market capitalization, interest rates and bond
yields)
- The following measures are not, in themselves, drivers of wealthy
population growth
- Market capitalization
- GDP
- The following measures are not drivers of wealthy population growth except
under very restricted circumstances
- Primary residence value growth
- Inheritance
- Methodology
- Wealth Management Market Leaders Survey 2009
- Global Wealth Model
- Bibliography
- Further reading
- Ask the analyst
- Datamonitor consulting
- Disclaimer
TABLES
- Table: Wealth managers' views of Santander' s wealth management services
- Table: Wealth managers' views of Santander' s wealth management service
- Table: Wealth managers' views of Santander' s wealth management service
- Table: Personal disposable income per adult in Europe, 2004 - 08
- Table: Household savings rates as a percentage of disposable income, 2004
- 08
- Table: Disposable income per adult and household savings rate, Spain
2004-2008
- Table: Market capitalization of European and US stock exchanges, 2004 - 08
- Table: Deposits increased over 2008, while bonds, equities and mutual
funds all witnessed declines in their levels
- Table: What proportion of your HNWs' portfolios is allocated to the
following five asset classes?
- Table: HNWs' portfolio allocation now versus in two years' time
- Table: HNWs' portfolio allocation by product area now versus in two years'
time
- Table: HNW attributes on a scale of 1 to 4 (1 = very low, 2 = somewhat
low, 3 = somewhat high, 4 = very high)
- Table: HNW attributes on a scale of 1 to 4 (1 = very low, 2 = somewhat
low, 3 = somewhat high, 4 = very high)
- Table: What are HNWs demanding today?
- Table: In two years' time, how much demand do you expect from HNWs for the
following product areas?
- Table: The key messages and relative merits of company and industry
communication
- Table: What product areas will your wealth management service focus most
resources on in the next two years?
- Table: What will determine HNWs' choice of wealth management service over
the next two years?
- Table: What are your company' s biggest strengths and weaknesses today?
- Table: What is the most effective means of increasing share of wallet
today?
- Table: What is the best way to retain clients today?
- Table: On average, how often do your relationship managers speak by phone
to each HNW client?
- Table: On average, how often do your relationship managers speak in person
to each HNW client?
- Table: When speaking with clients, what do they most want to talk about
today?
FIGURES
- Figure: Santander' s standing is only modestly regarded by wealth managers
in Spain
- Figure: Santander is perceived to be strong in its advisory service and
its technology capabilities
- Figure: Santander' s wealth management operation is well regarded in terms
of the quality of its relationships with clients
- Figure: Spain is consistently among those European countries with higher
savings rates
- Figure: Rising disposable income and a fairly constant rate of household
savings boost levels of saving in Spain
- Figure: The BME Spanish exchanges lost a percentage of their market
capitalization in line with the European average
- Figure: There was a significant fall in the overall value of financial
assets held by households in Spain during 2008
- Figure: The majority of HNW wealth in Spain is invested in the ' cash or
near cash' asset category, with this accounting for 27% of all investments
- Figure: In the next two years, Spanish investors will return to asset
classes currently out of favor
- Figure: In 2011, the majority of high net worth assets in Spain will be
invested in equities, accounting for 28% of all investments
- Figure: HNW investors in Spain have a higher risk appetite than the
average European HNW investor
- Figure: There is a greater risk of HNW clients in Spain leaving to find
another wealth manager than the average European HNW investor
- Figure: In Spain, HNW investors' greatest demand is for opportunities to
profit in the current environment
- Figure: In two years' time, the greatest demand amongst HNW investors in
Spain will be for foreign currency investments with 95% of HNW investors
demanding this category of product
- Figure: Wealth managers in Spain will be focusing most of their resources
on financial planning in two years' time
- Figure: HNW investors in Spain are most influenced by brand, image and
reputation in their choice of wealth manager
- Figure: The greatest strength of wealth managers in Spain is their
personal relationships with clients
- Figure: The best way for wealth managers in Spain to increase share of
wallet is to target relationship managers on cross-selling products
- Figure: The best way for wealth mangers in Spain to retain HNW investors
is to give the client several points of contact within the bank
- Figure: In Spain, wealth management relationship managers speak to clients
by phone approximately once a month
- Figure: Wealth management relationship managers speak to clients in person
approximately once a quarter
- Figure: The majority of clients in Spain want to speak to their wealth
manager about their portfolio allocations
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