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Targeting ex soviet wealthy customers

With the global recession having knocked billions off affluent investors' portfolios, wealth managers are looking to rebuild their businesses, and the former Soviet Bloc countries provide fertile hunting ground for wealth managers, both local and foreign, to find new clients.
As a result of the 'enforced marriage' of the Soviet Union for 70 years, the state structures and many of the underlying determinants of wealth are similar across Russia, Kazakhstan, and Ukraine. Despite all being part of the CIS, there are important differences between their economies today, their prospects for future growth, and the composition and needs of their affluent citizens.

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Targeting ex soviet wealthy customers

  1. 1. Targeting Key Ex-Soviet Bloc Clients in Wealth Management Wealth management for Russian, Kazakh, and Ukrainian clients Use this report to understand how best to target each nationality with the right products and services Report summary • Use our Global Wealth Model data to find out how many potential clients are in your target customer base and build your business plans for 2011-14 • Use our analysis of client characteristics to understand how best to target each nationality with the right products and services • Understand your competition, including the strategies they are using to build business, using our competitive profiles Buy this report online now at www.datamonitor.com/store RESEARCHSTORE
  2. 2. Targeting Key Ex-Soviet Bloc Clients in Wealth Management RESEARCHSTORE With the global recession having knocked billions off affluent investors' portfolios, wealth managers are looking to rebuild their businesses, and the former Soviet Bloc countries provide fertile hunting ground for wealth managers, both local and foreign, to find new clients. As a result of the 'enforced marriage' of the Soviet Union for 70 years, the state structures and many of the underlying determinants of wealth are similar across Russia, Kazakhstan, and Ukraine. Despite all being part of the CIS, there are important differences between their economies today, their prospects for future growth, and the composition and needs of their affluent citizens. Key findings and highlights • When it comes to service and contact expectations, Russians are the most demanding, according to their banks. Russia's affluent population, like those in Kazakhstan and Ukraine, is financially unsophisticated and conservative. The reasons for this have to do with these countries' histories and the source of most of the wealth there today. • All three nationalities hold the vast majority of their onshore liquid wealth in deposits, and only in Russia do investors put any money in equities, • The wealthy Russian, Kazakh, and Ukrainian client bases have historically been the preserve of the international banks, as local offerings were, until recently, thin on the ground. Global banks such as Coutts, Société Générale Private Banking, and Citigroup tend to target these customers from outside their home market. Key questions answered • How many onshore clients are there in Russia, Kazakhsta, and the Ukraine whose liquid assets exceed my threshold? • What are the investment and cultural characteristics of these clients and how do they translate into demand for products and services? “All three nationalities hold the vast majority of their onshore liquid wealth in deposits, and only in Russia do investors put any money in equities, mutual funds, or bonds.” Buy this report online now at • What innovative strategies are my competition for these customers (both local and international) pursuing? www.datamonitor.com/store About this report Introduction mutual funds, or bonds; these products barely exist for Kazakh or Ukrainian investors onshore. Datamonitor Report Published: Oct 10 | Code: CM00007-002 Targeting Key Ex-Soviet Bloc Clients in Wealth Management 2010
  3. 3. Targeting Key Ex-Soviet Bloc Clients in Wealth Management RESEARCHSTORE “The wealthy Russian, Kazakh, and Ukrainian client bases have historically been the preserve of the international banks, as local offerings were, until recently, thin on the ground.” Buy this report online now at www.datamonitor.com/store Sample pages Datamonitor Report Published: Oct 10 | Code: CM00007-002 Targeting Key Ex-Soviet Bloc Clients in Wealth Management 2010
  4. 4. Targeting Key Ex-Soviet Bloc Clients in Wealth Management RESEARCHSTORE Buy this report online now at www.datamonitor.com/store Table of contents OVERVIEW • Catalyst • Summary • Methodology EXECUTIVE SUMMARY • The wealthy in Kazakhstan, Russia, and Ukraine are first generation entrepreneurs, reflecting the economic changes their countries have undergone in the past 20 years • The opportunity is significant, with nearly 1.4 million affluent individuals onshore, and offshore holdings of at least $55 billion • Despite taking big risks in building their fortunes, clients prefer investments they consider to be 'safe' • Wealth management is a new concept in the region • International banks dominate wealth management for Russians, Kazakhs, and Ukrainians MARKET OPPORTUNITY • The onshore customer base in Russia, Kazakhstan, and Ukraine • The offshore customer base INVESTOR CHARACTERISTICS • Behavioral characteristics • Product and service needs COMPETITOR DEVELOPMENTS • There is increased focus on this lucrative customer segment • Russia's onshore wealth management market is the most developed in the region • Kazakhstan has virtually no onshore wealth management • Ukraine's embryonic onshore wealth management market is being developed • International banks have well developed services for wealthy Russian, Kazakh, and Ukrainian clients Datamonitor Report Published: Oct 10 | Code: CM00007-002 APPENDIX • Definitions • Methodology • Further reading • Ask the analyst • Datamonitor consulting • Disclaimer LIST OF FIGURES Figure 1: Russia's affluent population will see growth again in 2010f Figure 2: Kazakhstan's affluent population will not recover until 2011 Figure 3: The affluent population in Ukraine will resume growth again in 2010f Figure 4: Switzerland dwarfs the Channel Islands/Isle of Man as the most popular destination for CEE deposits and funds in 2009 Figure 5: At least 150,000 Russians and Ukrainians have leave to enter the UK each year LIST OF TABLES Table 1: Russia: aggregate onshore liquid assets segmented by asset band (€bn), 2005–09 Table 2: Russia: number of individuals segmented by asset band (000s), 2005–09 Table 3: Russia: aggregate onshore liquid assets segmented by asset band (€bn), 2010f–14f Table 4: Russia: number of individuals segmented by asset band (000s), 2010f–14f Table 5: Kazakhstan: aggregate onshore liquid assets segmented by asset band (€bn), 2005–09 Table 6: Kazakhstan: number of individuals segmented by asset band (000s), 2005–09 Table 7: Kazakhstan: aggregate onshore liquid assets segmented by asset band (€bn), 2010f–14f Table 8: Kazakhstan: number of individuals segmented by asset band (000s), 2010f–14f Table 9: Ukraine: aggregate onshore liquid assets segmented by asset band (€bn), 2005–09 Table 10: Ukraine: number of individuals segmented by asset band (000s), 2005–09 Table 11: Ukraine: aggregate onshore liquid assets segmented by asset band (€bn), 2010f–14f Table 12: Ukraine: number of individuals segmented by asset band (000s), 2010f–14f
  5. 5. Targeting Key Ex-Soviet Bloc Clients in Wealth Management RESEARCHSTORE The Datamonitor Group is a world-leading provider of premium global business information, delivering independent data, analysis, and opinion across the Automotive, Consumer Markets, Energy & Utilities, Financial Services, Logistics & Express, Pharmaceuticals & Healthcare, Retail, Technology and Telecoms industries. Combining our industry knowledge and experience, we assist over 6,000 of the world’s leading companies in making better strategic and operational decisions. Delivered online via our user-friendly web platforms, our market intelligence products and services ensure that you will achieve your desired commercial goals by giving you the insight you need to best respond to your competitive environment. Other reports in this series Offshore Financial Services in Switzerland Presents first-of-its-kind data on the portfolios, nature, and attitudes of offshore clients, and strategies for banking success among this segment based on a survey of offshore bankers in the location. For more information about these products or to browse and purchase from our huge range of research, please visit www.datamonitor.com/store. Buy this report online now at Europe tel: +44 20 7675 7764 fax: +44 20 7990 9988 email: reports@datamonitor.com Americas tel: +1 212 686 7400 fax: +1 646 365 3362 email: reports@datamonitor.com Middle East tel: +971 4 408 2832 fax: +971 4 335 2647 email: reports@datamonitor.com Asia Pacific tel: +61 2 8705 6900 fax: +61 2 8705 6901 email: reports@datamonitor.com www.datamonitor.com/store About us Published: Jun-10 | Code: BFFS0827 Contact our customer service team today... Datamonitor Report Published: Oct 10 | Code: CM00007-002
  6. 6. Targeting Key Ex-Soviet Bloc Clients in Wealth Management RESEARCHSTORE Single-user license Multi-user license (Please refer to www.datamonitor.com/store for up-to-date prices) Buy this report online now at 1) Confirm the license type you require Targeting Key Ex-Soviet Bloc Clients in Wealth Management 2010 2) Complete your details Title Mr / Mrs / Ms (delete as appropriate) Name........................................................................................................ Job Title ................................................................................................... Department .............................................................................................. Company ................................................................................................. Address ................................................................................................... City .......................................................................................................... State/Province ......................................................................................... Post Code/ZIP ......................................................................................... Country .................................................................................................... Email ........................................................................................................ Telephone ................................................................................................ Datamonitor products and services are supplied under Datamonitor’s standard terms and conditions, copies of which are available on request. Payment must be received within 28 days of receipt of invoice. I do not want to receive future mailings from Datamonitor and its related companies. I do not wish to receive phone calls from Datamonitor. Occasionally, our client list is made available to other companies for carefully selected mailings. Please check here if you do not wish to receive such mailings. .................................................................................................................. Date............................................ www.datamonitor.com/store Place your order now... 4) Sign below to confirm your order Datamonitor Report Published: Oct 10 | Code: CM00007-002 3) Complete your payment details What is your preferred currency option? UK£ Euro€ US$ Yen¥ How would you like to pay? I enclose a check payable to Datamonitor for .................... Please invoice my company for .................... Please supply purchase order number (if required) .................................................................................................................. If you are an EU company (except UK) please supply your VAT / BTW / MOMS / MWST / IVA / FPA number .................................................................................................................. X 5) Fax this completed form back +44 20 7675 7016 (Europe) +1 646 365 3362 (Americas) +971 4 335 2647 (Middle East) +61 8705 6901 (Asia Pacific) Alternatively you can scan and email this form to reports@datamonitor.com

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