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The HNWI challenge in offshore wealth management

By Ben Revill, Financial Services Business Manager, Xpedition

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by Xpedition
| 25/04/2017 12:00:00

In offshore wealth management, excellent client advisory management and client business development means a very different thing when it comes to the new generation of HNWIs

It may seem counterintuitive, but personal, direct contact is no longer the only key to strong trusted relationships and perceived service distinction. Now, this needs to be backed up by digital accessibility and a demonstration that your firm is digitally capable.

Don’t get me wrong: the personal contact is still important. But younger and more digitally savvy clients have the best of everything, technology-wise. They are confident using multiple devices that give them access to all the information, services and contacts they want for any area of their personal and professional life, wherever they are in the world. So the trusted relationship needs reinforcing by digital means.

Offshore wealth management providers need to wise up to this, fast, or risk losing second and third generation clients. A recent PwC survey suggested that up to 50% of successors taking over responsibility for family wealth transfer their business elsewhere, eschewing the old-school wealth manager favoured for decades by their forebears.

The likelihood is that this is driven by the new HNWI’s perception that those traditional, safe hands lack progressiveness, agility and understanding of the modern HNWI lifestyle.

How do offshore wealth managers bridge this perception gap, to reduce the risk of lost clients that threatens their business?
OK, we all know the answer lies in digital solutions – meeting the new HNWIs on their own ground means providing information, contact and service through a range of digital channels.

Wealth Managers have been rapidly investing in digital solutions, to address this perception ‘gap’ and appear more modern to clients. Secure web and mobile for updates, market news and decision-making, as well as for direct, one-to-one contact.

But the real challenge is finding a joined-up way to deliver this digital wealth management experience cost effectively, securely and rapidly. These need to be investments and projects whose strategic objective is to directly enhance the digital client experience, make transactions smart – ‘friction-less’ via the web and reinforce confidence in the trusted relationship within clients’ digital environments online.

Many recent reactive investments have added new discreet systems; new data silos of client data for specific self-service online tasks such as portfolio management, eMarketing and so forth, but so often these have added the overhead without leveraging the vast amount of client data available for achieving the strategic objective that enhances the client relationship in their digital world.

Wealth Management – If you lack the expertise in house to make these choices, now is the time to seek advice.
The trusted advisor relationship will always have value. Track record, expertise and transparently shared financial goals still count. But it’s not just what the wealth manager does for them, it’s how they do it that makes the difference. And the ‘how’ that these savvy investors want for offshore wealth management is… digital.

See original blog: https://www.xpedition.co.uk/article/hnwi-challenge-offshore-wealth-managers/