How Wealth Managers/Family Offices Should Engage NextGen UHNW/HNW


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Learn more about HNW trends in wealth management and family office. How can you run a multi-generational practice to meet the needs of babyboomers and next gen! This was my presentation in Shanghai January/2014

How Wealth Managers/Family Offices Should Engage NextGen UHNW/HNW

  1. 1. Adapt or Die How to profit from a financial services future that is younger, more global, more regulated and more networked. Second Annual Offshore Financial Investment & Wealth Management Summit, 16th of January 2014, Shanghai.
  2. 2. April Rudin April Rudin is the founder of The Rudin Group, a wealth marketing firm that helps financial services firms attract the high-net-worth clients they deserve. A recognized expert in UHNW/HNW financial services marketing: Frequent public speaker for groups such as the Family Office Exchange (FOX), Tiger 21, and industry conferences. Frequent contributor to Huffington Post, Family Wealth Report and many other publications on wealth, next gen and technology. Chair of HNW Advisory Board for the HFA (Hedge Fund Association). Member of Advisory Board for PAM (Private Asset Management).
  3. 3. Financial services firms face Regulatory Burdens Demographic Shifts Technology Hurdles
  4. 4. The Game Plan Cultivate Next-Gen Clients Maintain Retirement-Age Clients Provide Transparency Invest in Digital Technology and Social Media
  5. 5. Capitalizing on Regulation Turn integrity, transparency and ethics into the cultural pillars of your business—not just in the boardroom, but among your employees.
  6. 6. A Call to Action “we do it this way because we always have…” must be replaced by “We do it this way because it is the right thing to do - and we still make money”
  7. 7. A Tectonic Shift Wealth transfer to inheritors thru 2052: U.S.: $18 trillion Asia-Pacific: $6+ trillion 98% of inheritors switch advisors.
  8. 8. Stuck in the Past Marketing & services of yesterday Marketing & services of today
  9. 9. Golden Oldies Baby Boomers (Born post WWII to mid ’60s) Trust in authority Value reliability, longevity Belief in experts, specialists Prefer in-person, local expertise Bigger is better Loyal/reluctant to “disrupt” relationships Like to “be served” Peer advice = word of mouth
  10. 10. Kids Today Gen X & Gen Y(Born late ’60s to mid ’90s) Don’t trust “suits” post-2008 Smaller is better Confident, educated Want transparency in fees, reporting Global/mobile and technology oriented Value community, authenticity Like to have “self-serve” option Peer advice = social media
  11. 11. Next Gen Competition Non-traditional web-based advisory companies New media information providers Luxury/leisure service providers
  12. 12. Playing Catch Up Global wealth managers/financial services firms are far behind their clients in digital and social media adoption. Affluent Investors: 34% use social media for personal finance and actual investing 24% have changed investment providers or reallocated investments due to social media. HNW Investors 25% seek investment advice from social media.
  13. 13. AsiaPac Digital Heavyweights Affluent Investors: 40% of HNW prefer digital contact over face-to-face or phone. 28% of Internet users would buy a brand if a friend "liked" it on a social networking site. Only 50% of Chinese believe you have to be cautious online.
  14. 14. Technology Rising Wealth managers predict that: Their use of social networks will climb 40% by 2014 Mobile & tablets will account for 85% of CRM technology
  15. 15. Marketing Spend By Channel Brochures & Sales tools (11%) Brochures & Sales tools (28%) PR, Media & Print (28%) 2009 Digital & Social (38%) Digital & Social (19%) Offline Events (18%) PR, Media & Print (31%) 2014 Offline Events (20%)
  16. 16. Social Media’s Reach Financial services firms can use social media to: conduct product/service research deliver branded messaging vet referrals & source referrals create compelling digital profiles publish content and thought-leadership
  17. 17. Q&A + Discussion
  18. 18. Thank You! Contact: