Choosing a Wealth Manager: the Decision-Making Process in the UK

Published by Global Data on 22nd November 2018 | Ref: 1107184 | This Report Is In Stock

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Introduction

Choosing a Wealth Manager: the Decision-Making Process in the UK

Summary

While triggers for seeking advice differ across segments, the need for advice is centered on events where the consumer is gaining access to substantial funds, such as retirement or inheritance. Individuals in higher income bands are unsurprisingly more willing to pay for advice, but uptake can be boosted through education and the promotion of a trusted brand. Given HNW investors’ tendency to spread their assets across multiple providers, becoming a one-stop shop is critical as it means investors are less likely to spread their wealth. Given that 70% of the UK HNW population is above the age of 50, wealth managers need to have a strategy in place to appeal to the next generation of investors. Inheritance and estate planning services that include current HNW clients’ children in the planning process are the most straightforward solution.

This report provides a comprehensive analysis of key factors affecting investors’ choice of financial advice and investment services providers in the UK. The report is primarily based on our proprietary surveys.

Specifically the report -

- Uses insight from our surveying of wealth managers and independent financial advisors to learn how competitors target and acquire clients, while assessing the effectiveness of different methods.

- Analyzes key triggers prompting investors to seek advice and the factors affecting their choice of provider.

- Examines the research process undertaken by individuals before making financial decisions.

- Compares investor attitudes towards different communication and onboarding channels.

- Provides recommendations on how to deal with changing investor preferences and how to stay relevant to the next generation.

Scope

- Almost half of UK HNW investors opt for professional advice due to lack of time.

- More than a fifth of UK HNW investors chose their wealth manager based on the provider’s trusted brand image.

- UK HNW investors allocate almost three quarters of their wealth to discretionary mandates.

- Almost a third of UK HNW investors who self-direct do so to save on management fees.

Reasons to buy

- Identify events prompting investors to seek advice in order to better understand your clients.

- Learn about UK consumers’ willingness to pay for advice.

- Identify how investors research investment services providers to evaluate your client acquisition strategy.

- Understand how UK individuals choose their financial advisors to tailor your targeting approach.

- Review your digital strategy by learning how different channels are used by different demographics.

- Explore differences between key client segments and demographics to evaluate your marketing efforts.

Table of Contents

Table of Contents

1. EXECUTIVE SUMMARY 2

1.1. Intergenerational wealth transfer is big business in the UK 2

1.2. Key findings 2

1.3. Critical success factors 2

2. THE CUSTOMER PURCHASING CYCLE AND INVESTMENT MANAGEMENT IN THE UK 9

2.1. All consumers undergo a similar buying process, understanding of which increases client acquisition 9

3. TRIGGERS PROMPTING INVESTORS TO SEEK FINANCIAL ADVICE 11

3.1. Retirement is the most important driver for seeking financial advice 11

3.2. As investors’ income doubles so does their willingness to seek financial advice 13

4. RESEARCH CHANNELS AND OUTREACH 16

4.1. Investor education requires constant attention by wealth managers 16

4.2. Targeting the next generation of HNW investors early is paramount 17

5. PROVIDER SELECTION CRITERIA 22

5.1. Cost and reputation are the key factors when selecting an advisor 22

5.2. Recommendations are critical in the decision-making process, but the effectiveness of acquisition channels varies across segments 27

5.3. A brand image conveying trust and expertise is paramount in the HNW space 29

6. UK INVESTORS ARE CHOOSING FROM A SATURATED MARKET 32

6.1. UK HNW investors are a promiscuous bunch, but efforts to become the main wealth manager will pay off 32

6.2. Few investors have moved all their products to their main wealth manager 34

6.3. To compete with robo-advisors, wealth managers should highlight the benefits of a considered investment strategy 37

7. ADVISOR INTERACTION AND CLIENT INVOLVEMENT 40

7.1. With a foundation of trust, UK HNW clients opt for discretionary mandates 40

8. APPENDIX 47

8.1. Abbreviations and acronyms 47

8.2. Definitions 47

8.3. Supplementary data 48

8.4. Methodology 48

8.5. Further reading 50

Additional Details

Publisher

Global Data

Publisher Information

Reference

1107184 | FS0168IA

Number of Pages

52

Report Format

PDF

This report is published by Global Data

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