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Wealth Managers Capture Larger Share of Client Wealth Over 20 Year Time Frame

bussmin News

I am always interested in the research and insights that Seb and the Scorpio team and partners produce.  The latest findings are worth reading but this conclusion made me smile.  It confirmed what I was told at Kleinwort Benson over 28 years ago.  (Yes, I’m getting on, but I don’t look it!?).  The conclusion?  “Loyalty pays”.  It’s a shame CEO’s don’t keep that in mind.

According to a study released by SEI (NASDAQ: SEIC), NPG Wealth Management, and Scorpio Partnership,the world’s millionaires increase assets held at a wealth manager by 18% over a 20 year relationship.

The research, entitled The Futurewealth Report 2014: Enhancing the customer service curriculum, is the third paper in a four-part series on the wealth management customer experience. The paper explores the ongoing service factors provided by wealth managers and the growth of the relationship for 3,025 of the global wealthy with an average worth of USD2.9 million.

The paper finds that HNWs who have been with their main financial provider for five years have just 42% of their investable wealth with a firm and would not consider consolidating more than 45% with a single wealth manager.However, as the relationship length increases, so does the openness to increasing assets at a preferred provider. By the time the relationship has reached 20 years, HNWs have 60% of their wealth with a single provider.

“The commercial reward for wealth managers who maintain a consistent ongoing relationship with their client is very real so long as they continue to meet client expectations,” added Sebastian Dovey, Managing Partner of Scorpio Partnership.“These findings highlight why wealth managers need a clear picture of their customer experience. It is crucial to future growth.”

bussminWealth Managers Capture Larger Share of Client Wealth Over 20 Year Time Frame