Customer Retention in Wealth Management 2009

Table of Contents

DATAMONITOR VIEW

• CATALYST
• SUMMARY

ANALYSIS

• Customer retention is a key strategic issue in the wealth management business today
  • Customer retention needs to be a defined business strategy
  • There are differing risks associated with HNWs leaving their wealth manager to manage their own money or to find another wealth manager
• Wealth managers need to understand the determinants of HNWs' choice of provider
  • Features of the wealth management firm outside of service most influence HNWs' choice of provider in both Europe and APAC
  • Wealth management service implication: Wealth managers can proactively enhance their level of personal service to help the image of the firm
  • Although the reputation of a firm dominates investors' concerns, service aspects of the wealth management business are also important to HNW clients
• In both Europe and APAC, wealth managers should be careful to give correct analysis and insight to retain their HNW clients
  • In the downturn, wealth managers know that they need to not make errors to retain their HNW clients
  • In both Europe and APAC, several points of client contact within the bank is also important to retain customers, as is resolving issues efficiently
  • HNW clients are concerned about their portfolio performance
• Wealth managers need to maintain frequent contact with their clients as they steer them towards new investment opportunities
  • Telephone contact is maintained more frequently in APAC than in Europe
  • Face to face contact is also maintained more frequently in APAC than in Europe
  • Wealth managers need to be innovative in their contact with clients to build a strong working relationship
• To effectively retain clients, wealth managers need to really get to know their clients
  • There are regulatory requirements that necessitate wealth managers getting to know their clients
  • Getting to know clients goes beyond capture of data to support regulatory requirements
  • Innovative examples from around the globe where wealth managers create special events to get to know their clients better

APPENDIX

• Methodology
  • Wealth Management Market Leaders Survey 2009
• Bibliography
• Further reading
• Ask the analyst
• Datamonitor consulting
• Disclaimer

TABLES

• Table: Please rate your high net worth clients' characteristics
• Table: What will determine HNWs' choice of wealth management service over the next 2 years?
• Table: What is the best way to retain HNW clients today?
• Table: When you speak with your HNW clients, what do they most want to discuss?
• Table: How frequently on average do you have telephone contact with your HNW clients?
• Table: How frequently on average do you have face to face contact with your HNW clients?

FIGURES

• Figure: HNWs in APAC are more likely to leave their wealth manager to manage their own money
• Figure: In Europe, German HNWs are most likely to leave to find another wealth manager and least likely to leave to manage their money on their own
• Figure: In APAC, Hong Kong HNWs are most likely to leave their wealth manager to manage their money on their own and least likely to leave to find another wealth manager
• Figure: Features of the wealth management firm external to service most influence HNWs' choice of provider in both Europe and APAC
• Figure: In Europe, the financial stability of the company is the most important determinant of HNWs' choice of wealth manager
• Figure: In Asia Pacific, the brand, image and reputation of the firm is the most important determinant of HNWs' choice of wealth manager
• Figure: In both Europe and APAC, wealth managers should be careful to give correct analysis and insight to best retain HNW clients
• Figure: Wealth managers in Europe need to ensure that they do not make errors in order to retain HNW clients
• Figure: Wealth managers in APAC need to ensure that they resolve client problems as efficiently as possible
• Figure: HNWs in Europe and Asia wish to talk with their wealth managers about portfolio performance
• Figure: European HNWs are concerned about the performance of their portfolios and anxious about the future
• Figure: HNW investors in APAC are concerned with the performance of their portfolios but are also looking for investment opportunities in the current market
• Figure: Wealth managers in APAC are more likely to have weekly telephone contact with their HNW clients than their European counterparts
• Figure: Wealth managers in Germany, Italy and France lead the way in Europe for weekly telephone contact with their HNW clients
• Figure: Wealth managers in India, Hong Kong and Australia are more likely to have weekly telephone contact with their HNW clients than wealth managers in other APAC countries
• Figure: Wealth managers in APAC are more likely to meet with their HNW clients on a monthly basis than is the case for their European counterparts
• Figure: Quarterly meetings between wealth managers and HNW clients are most likely in Europe
• Figure: APAC is divided between monthly and quarterly meetings between wealth managers and HNW clients