Editors Note: There is one video and one image associated with this press release.
Digital has become the pressing mandate for meeting client expectations, reducing flight risks and increasing profitability in the wealth management industry, finds the World Wealth Report 2014 (WWR), released today by Capgemini and
HNWIs across all geographies are demanding digital capabilities from firms, led by those in emerging markets. Eighty-two percent of HNWIs in
Digital demands shatter some long-held beliefs
Long-held beliefs that digital is only for the young, less-wealthy or self-directed have been shattered as HNWIs expressed their digital preferences in this year's survey.
-- Wealth: Even the wealthiest HNWIs are demanding digital, with over half (55 percent) of those with over
US$20 millionin investable assets and three-quarters (74 percent) of those with US$ 10-20 millionexpecting a largely digital wealth management relationship in five years. -- Age: While demand is highest among HNWIs under 40, older HNWIs are also demanding digital: 57 percent of those over 40 would consider leaving their firm if an integrated experience is not provided (compared to 80 percent of under 40s). -- Need for advice: It is not just self-directed HNWIs who are seeking digital capabilities from firms. More than half (57 percent) of HNWIs
who seek professional advice expect their wealth management relationship
to be primarily run digitally in five years (compared to 78 percent of self-directed HNWIs).
"Demands for digital capabilities know no boundaries when it comes to age, wealth, or geography. Clients want their touch points with wealth management firms to be seamless and fully-integrated every time," said Jean Lassignardie, Chief Sales and Marketing Officer,
Digital capabilities that inform or enable transactions most important for HNWIs
Globally, HNWIs prioritize digital interactions that either keep them informed or enable transactions. HNWIs place more importance on accessing information such as portfolio updates or investment research via websites than through in-person or phone meetings. Online capabilities are also favored when it comes to executing transactions, a preference led by those in
HNWI preferences become more personal, shifting to face-to-face and phone interactions when it comes to engaging with their wealth managers, particularly for advice. However, the WWR notes that this is likely to change given a high demand for digital capabilities from HNWIs under 40 across all types of interactions with firms, including twice the demand for mobile, video and social media capabilities compared to their over 40 counterparts. This heightened demand puts increased pressure on firms to adopt a digital mindset as younger HNWIs acquire greater wealth and prominence.
"Digital capabilities offer significant opportunities for wealth management firms to enhance their relationships with clients," said
Firms need to shift their mindset and engrain digital throughout the client experience
To remain competitive in the future and to fully capitalize on all that digital has to offer to wealth management firms and their clients, firms need to adopt a transformative mindset that engrains digital throughout their interactions with clients. Forward thinking firms will recognize that having advanced digital capability is not optional and will focus on building a digital vision that adapts to how HNWIs want to interact.
Firms that successfully make this digital transformation can deepen client relationships, reduce administrative tasks for wealth managers, drive significant savings, build a reputation as a forward-thinking firm, and ultimately improve the client experience, and boost client retention.
The World Wealth Report 2014
The World Wealth Report from Capgemini and
For more information, explore our new interactive website at www.worldwealthreport.com.
With more than 130,000 people in over 40 countries, Capgemini is one of the world's foremost providers of consulting, technology and outsourcing services. The Group reported 2013 global revenues of
Rightshore(R) is a trademark belonging to Capgemini
About Capgemini's Financial Services Global Business Unit
Capgemini's Global Financial Services Business Unit brings deep industry experience, innovative service offerings and next generation global delivery to serve the financial services industry. With a network of 24,000 professionals serving over 900 clients worldwide Capgemini collaborates with leading banks, insurers and capital market companies to deliver business and IT solutions and thought leadership which create tangible value. More information is available at: www.capgemini.com/financialservices.
Connect with our wealth management experts in the Financial Services section of Capgemini Expert Connect at http://www.capgemini.com/experts/financial-services.
The World Wealth Report 2014 and other Capgemini thought leadership is available for your iPad through Capgemini's Financial Services Insights app. Download it through iTunes at https://itunes.apple.com/us/app/capgeminis-financial-services/id668885174?mt=8.
Connect with Capgemini:
RBC supports a broad range of community initiatives through donations, sponsorships and employee volunteer activities. In 2013, we contributed more than
(i)Scorpio Partnership Global Private Banking KPI Benchmark 2013. In
To view the video associated with this press release, please visit the following link:
To view the image associated with this press release, please visit the following link:
(2) HNWIs are defined as those having investable assets of
FOR FURTHER INFORMATION PLEASE CONTACT: Capgemini
Mary-Ellen Harn( North America) +1 704 490 4146 firstname.lastname@example.org Capgemini Contacts: Weber Shandwick for Capgemini Courtney Finn( North America) +1 952 346 6206 email@example.com Weber Shandwick for Capgemini Cortney Lusignan(EMEA) +44 (0) 20 7067 0764 firstname.lastname@example.org RBC Wealth Management Contacts: Claire Holland( North America) +1 416 974 2239 email@example.com Timi Oni (EMEA) +44 (0) 20 7653 4516 firstname.lastname@example.org Source: RBC Wealth Management