The Futurewealth report 2012-2013: Stepping into the communication age

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The Futurewealth Report 2012-2013
Stepping into the
communication age
Part 2
January 2013

FOREWORD
In Future Shock, Alvin Toffler famously wrote about the need for adaptability in the 21st
century.
People, he argued, would need to be able to learn, unlearn and relearn to keep pace with the
information flow.
In this second paper in our 2012/2013 Futurewealth series, we find the Futurewealthy are
applying these very skills to their changing communication patterns. Not only are they rapidly
adopting new technologies, as we found in our first paper; they also have a clear understanding
of how new communication tools can enhance their interactions with others.
Their use of email, web portals, social networking and other digital communication is set to
increase significantly, but not as a replacement for more traditional approaches. Instead, these
new tools are a supplement offering different qualities and different ways to connect.
This research has significant implications for those who serve this valued group of customers. It
highlights that delivering the personal touch in future will require the ability to make connections
with clients in many different forms, not to replace time spent face-to-face, but rather to enhance
that personal experience.
Interestingly, we also find again that it is the wealthiest and those in Asia who are adapting their
communication habits most quickly. All this suggests that the race is now on to deliver the
communication experience that wealthy clients already expect.
Sebastian Dovey
Managing Partner,
Scorpio Partnership
Shayne Nelson
Global Head, High Value
Client Coverage
& CEO,
Standard Chartered Private
Bank
Alfred P. West, Jr.
Chairman and Chief
Executive Officer,
SEI

The Futurewealth Report
Stepping into the communication age
IN BRIEF
This is the second paper in our 2012/2013 Futurewealth series, which is based on the views of
3,477 of the world’s fast-trackers whose average wealth tops USD1.9 million. We know them as
the Futurewealthy and have been tracing their footsteps for the past four years.
This year’s series of four reports aims to uncover the digital habits of the Futurewealthy at work,
at play and managing their complex lives. In our first paper, we found the Futurewealthy have
woven digital technologies into the fabric of their lives. In this paper, we examine this theme
further to see just how far they have stepped into the communication age.
Consumate communicators
What we find is the Futurewealthy are not just effective communicators; they are, in fact, virtuosi
in the art, devoting the time and mastering the skills to make their voices heard. They have, it
seems, an intuitive understanding of the qualities of different kinds of communication. So,
perhaps it comes as no surprise that the potential of digital communication excites them.
Zero to hero communications
While age-old styles of communication remain central to their interactions, new approaches like
email, web portals, messaging and social networking are moving quickly from zero to hero status.
Over a third of the Futurewealthy expect to use these new approaches much more over the next
five years.
This trend extends to their financial relationships, where email and secure web portals look set to
become key communication channels of the future.
Über-wealthy trailblazers
Moreover, it is the very wealthiest of the Futurewealthy – those with over USD4 million – who are
the earliest adopters of these new communication styles. They spend 28 hours on digital forms of
communication per week, compared with 19 hours among the group as a whole.
What is more, they have high hopes that their wealth managers will enter into digital dialogue with
them much more in future.

One conversation with a wise man
is worth ten years of study
In brief
 The Futurewealthy are passionate about many things, including getting their point across. As
a group, they spend 30.5 hours each week in some form of communication or dialogue and
this figure rises to 43 hours among those whose wealth exceeds USD4 million.
 Of this total time, digital communication on email, web portals, social networking, SMS,
instant messaging and VOIP calls accounts for 19 hours. This figure rises to 28 hours for the
richest. In other words, the wealthiest of the Futurewealthy are already significantly more
likely to be active online conversationalists.
 In the future, these figures rise sharply. Over a third of the Futurewealthy expect to use digital
communications significantly more in the next five years. And, they expect their wealth
managers to follow suit.
THERE ARE NO STRANGERS HERE; ONLY FRIENDS YOU HAVEN’T YET MET
From cave painting to cuneiform, type-setting to tweeting, every age has had its communication
revolution. All have been driven by the human need to share information and each has opened
new possibilities for self-expression and new levels of personal interaction. As we step into the
new communication age, the possibilities now seem endless and the letters www have become a
call sign to the world.
In the past four years, we too have taken measured steps into this brave new world using these
same little letters to reach out and start a conversation with the world’s wealth creators – or as we
know them – the Futurewealthy. Through an ongoing digital dialogue, we have been able to listen
to their hopes, dreams and expectations for the future.
In our latest research, we found that new technologies have become central to the lives and
working habits of the Futurewealthy1
. Now, we ask whether they have become virtuosi when it
comes to their virtual communication.
1. The Digital World of the Futurewealthy, November 2012

#FW2012/2013
Those worth under USD500,000
spend 25 hours a week
communicating with others, 18
hours less than their
counterparts worth more than
USD4 million.
CONVERSATION IS AN ART IN WHICH MAN COMPETES WITH ALL MANKIND
Humans developed speech for a simple reason; we have a lot to say. So, is it any wonder that the
world’s most influential people are also those who are the most communicative?
For the Futurewealthy, communication is vital in all its forms
and they spend over 30 hours a week connecting with
others.
The wealthier they are, the more they have to talk about.
Those with over USD4 million devote almost 43 hours to
their weekly correspondence using a variety of different
communication methods.
For these wealthiest of the global elite, email is the frontrunner, accounting for almost six hours of
their weekly interactions. Other kinds of communication are not far behind, including new digital
channels like web portals, social networking and instant messaging. They are also ready pioneers
of new approaches spending, for example, almost three hours a week more on VOIP calls than
those Futurewealthy who have personal wealth less than USD500,000 [Figure 1].
Figure 1: Communication usage (by worth)
How much time do you spend using the following methods of communication each week?

The Asia Pacific region also stands out for its online experimentalists. The Futurewealthy in these
countries spend significantly more time in digital dialogue than their counterparts in Europe or the
Americas.
Interestingly, social networking is their second most popular digital communication behind email.
Asia’s Futurewealthy devote more than 4 hours to social media channels, which is almost double
the time spent by those in Europe or the Americas.
Figure 2: Regional communication usage
How much time do you spend using the following methods of communication each week?

Looking into the future, however, it is not just Asia’s elite who are exploring the possibilities of
new technology. All the Futurewealthy expect to spend significantly more time on digital
communications by 2017.
Email, it seems, is everyone’s staple. Within five years, almost half the Futurewealthy expect to
spend significantly more time on email each week. Indeed, digital connections will almost
certainly be the hero communications of the future for this group as they envisage increasing their
use of a whole range of digital channels. [Figure 3].
However, none of this will take away from traditional methods. The Futurewealthy also expect a
steady increase in their meeting and phone time, not to mention good old-fashioned snail-mail.
In fact, while over a third of the global wealthy intend to increase their usage of hero
communications in the short term, a further quarter plan to hike in their use of core
communications. What this implies is that the world’s wealthy are not so-much changing how
they communicate today, they are simply adding new tools to their arsenal.
Anyone looking to join their circle of influence will need to keep up in this friendly arms race – in a
very real and a very virtual sense.
Figure 3: Communication usage increase
How long do you currently spend using the following communications each week and do you plan to use
these communications more in five years’ time?
Time spent communicating each week (hours)
%ofrespondentswhowilluse‘muchmore’infiveyears

#FW2012/2013
Asia’s wealthy currently spend
four hours every week
communicating via social
networks, an hour and a half
more than those in Europe and
America.
THE SMARTPHONE REVOLUTION IS UNDER-HYPED. MORE PEOPLE HAVE
ACCESS TO PHONES THAN TO RUNNING WATER.
As many have observed, it is the scale of digital access around the world that is driving the global
communication revolution. And, if we look at the habits of the world’s wealth creators, it is clear
that for them the revolution is only just getting started.
Those in the Asia Pacific countries are leading the charge. 56%
of them expect to use email much more in the future and this
pattern of proliferation is repeated for each communication
channel, with a notable emphasis on social networking, web
portals, instant messaging and SMS [Figure 4].
By contrast, those in Europe seem to have had their interest
piqued by specific options. Web portals and VOIP calls stand
out among their tools of the future. Whereas those in the Americas have a notable bias toward
email and web portals, expecting these to be their channels of choice by 2017.
Indeed, the message is coming through loud and clear: the world’s elite expect to communicate
more, in more forms and more often as the next few years unfold.

How long do you currently spend using the following communications each week and do you plan to use these communications more in five years’ time?
Percentageplanningtouse‘muchmore’
infiveyears’time
Email Meeting Face to
Face
Telephone Calls Secure Web
Portal
Social
Networking
Written SMS Instant
Messaging
VOIP (Skype)
56% 36% 40% 46% 47% 28% 40% 44% 33% Asia Pacific
41% 24% 19% 31% 23% 17% 25% 19% 19% Americas
33% 20% 19% 30% 22% 16% 19% 19% 28% Europe
Currentweeklyusage
4.9 hours 4.5 hours 3.9 hours 3.5 hours 3.2 hours 3.0 hours 3.0 hours 2.6 hours 1.9 hours
Figure 4: Regional communication usage

THE ILLITERATE OF THE 21ST
CENTURY WILL NOT BE THOSE WHO CANNOT
READ AND WRITE, BUT THOSE WHO CANNOT UNLEARN AND RELEARN
Not only are the Futurewealthy adopting more tools, these consummate conversationists are
quickly adapting their skills into this new communication environment. It seems they recognise
that to become a spider in the world wide web requires an intricate knowledge of where and how
to place each thread.
Their success is due in part to an inate understanding of what works well when it comes to
getting a message across.
Email is undoubtedly the bridge thread of the communication web, taking the most strain. This is
no coincidence, as they recognise that email is a communication tool that has many strengths. It
is easy to access and efficient, which are all-important qualities for those who are time poor. It
can also be highly personal, reasonably secure and the string of interactions act as both a log and
a prompt for those who have a lot on their minds.
What email lacks, however, is a visual quality. Face-to-face contact remains the second most
popular form of communication for this one vital reason. Meanwhile, telephone calls act as the
frame thread in a supporting position.
Within this structure, digital communications allow the Futurewealthy to capture the attention of a
wider network and connect with friends old and new [Figures 5 & 6].

Figure 5: Hero communication qualities
Which qualities do you associate with each of the following communications? (Percentage of
respondents who linked these qualities to particular communications)
Figure 6: Core communications
Which qualities do you associate with the following communications? (Percentage of respondents who
linked these qualities to particular communications)

CHANGE IS THE PROCESS BY WHICH THE FUTURE ENRICHES LIVES
So, the challenge for those wishing to get close to the centre of their web, is how to make the
right connections with the Futurewealthy. This is a complex conundrum, especially for wealth
managers, because when it comes to money mum has always been the word.
Going forward, the Futurewealthy want to keep a degree of discretion, but not if it keeps them
offline. In fact, we find that they expect to repeat their communication patterns even in this most
sensitive of situations. However, there is one distinct difference: email does not take the top slot.
Rather, they expect in future to converse with their money manager through secure digital
channels much more than today.
Indeed, in the matrix of future communications, secure web portals leap up the list for financial
interactions, knocking email, phone calls and meetings into second, third and fourth places.
Wealth managers also need to be mindful that instant messaging, SMS, social networking and
VOIP are also distinctly evident in the future mix. The Futurewealthy expect to increase their use
of these channels in connection with wealth discussions considerably over the next five years.
It is also worth noting that these connoisseurs of communication have subtly different preferences
depending on the kind of investment they are discussing. As a rule of thumb, the more active the
investment, the more proactive the information flow needs to be. Digital channels feature
particularly prominently for fund-based investments and direct securities [Figure 7].
Figure 7: Future investment communication usage
Over the next five years, do you expect to be using these communications more, less or the same
amount as you do now when interacting with your main financial provider?

And, as a note of caution, wealth providers need to beware of lulling themselves into a false sense
of security that their wealthiest clients are those who most value the personal touch. Because,
while this is true, it is not the whole picture.
The wealthiest of the Futurewealthy – those with over USD4 million – are also those who most
value access to a web portal, email, SMS and social networking features. In fact, once again, we
find it is those in the highest echelons of wealth who expect the most advanced kinds of
communication from their financial providers [Figure 8].
Figure 8: Investment communication usage (by worth)
Over the next 5 years, do you expect to be using these communications more, less or the same amount
as you do now when interacting with your main financial provider?

We also find, once again, that Asia’s zeal for all things technological may result in a very quiet life
for businesses that ignore their passion. The Futurewealthy in this region expect to use all digital
and non-digital channels much more in the future [Figure 9].
Indeed, firms that want to keep up with those sprinting up the wealthy curve will clearly need to
master many forms of communication in the not-too-distant future. Only those that are ready to
adopt this wider repertoire, will be able to forge close connections with Asia’s up-and-coming
elite.
Figure 9: Investment communication usage (by region)
Over the next 5 years, do you expect to be using these communications more, less or the same amount
as you do now when interacting with your main financial provider?

THE WAY WE COMMUNICATE WITH OTHERS ULTIMATELY DETERMINES THE
QUALITY OF OUR OWN LIFE
In our first chapter of this research, we found the world’s wealth creators were optimistic about
the potential of digitial technology to enhance their own future success. In this chapter, we find
that to achieve this ambition they are mastering its communication arts.
They devote considerable amounts of time to this task and they are experimenting with all the
options. More than that, they expect to communicate a lot more in the future using not only new
technology, but also tried-and-trusted techniques.
All this suggests that firms wanting to connect with those on the wealth frontier, will need a wider
repertoire of communication styles as well as broad technological toolkit.
In fact, if we just look at their financial relationships, the Futurewealthy are already straying away
from fail-safe communications to find new ways to stay in touch.
And, as we have found before, it is those with the highest levels of wealth and those in the Asia
Pacific region who are leading this charge. They have the greatest expectations that their future
financial relationships will have multiple touchpoints and will harness new technologies to the
max.
In our next paper, we will explore this theme further still. Taking as our theme the subject of
helpful investment technology, we will ask the Futurewealthy directly what kinds of technology
they expect from their financial providers and what they believe will give them the financial
relationships they really want.

ABOUT THE PARTNERS
Scorpio Partnership
Scorpio Partnership is a pioneer in the art of translating the complex needs of wealthy clients
into practical, innovative and profitable solutions to target these customers. This award-winning
firm has developed client insight from thousands of millionaires and billionaires around the world.
With this knowledge, the firm has implemented strategic research, practical consulting and
business innovation projects in over 35 countries.
Standard Chartered Private Bank
Standard Chartered Private Bank is the private banking division of Standard Chartered Bank.
Headquartered in Singapore, the Private Bank employs over 1,200 staff, including 450
relationship managers, globally. It has 22 offices (with two trust offices) across Asia, Africa,
Middle East and Europe.
The Private Bank leverages the natural strengths of Standard Chartered: A heritage of over 150
years in international banking, a global network across more than 70 countries, and strong local
presence in key growth markets. These put the Private Bank in an advantaged position to grow
steadily and deepen client relationships across its core markets.
SEI
SEI (NASDAQ:SEIC) is a leading global provider of investment processing, fund processing, and
investment management business outsourcing solutions that help corporations, financial
institutions, financial advisors, and ultra-high-net-worth families create and manage wealth. As of
September 30, 2012, through its subsidiaries and partnerships in which the company has a
significant interest, SEI manages or administers $448 billion in mutual fund and pooled or
separately managed assets, including $195 billion in assets under management and $253 billion
in client assets under administration. For more information, visit www.seic.com.
Morar Consulting
Morar Consulting was founded to bring new approaches to brand strategy and brand
measurement to help firms grow the value of their brands. Their work is built on a combination of
four key elements: insight, expertise, technology and action.
Important Information
All graphical and image material in this report are sourced by and to Scorpio Partnership.
Standard Chartered Private Bank is the private banking division of Standard Chartered Bank (“SCB”). Private banking activities may be carried out
internationally by different SCB legal entities and affiliates according to local regulatory requirements. Not all products and services are provided by all
SCB branches, subsidiaries and affiliates. Some of the SCB entities and affiliates only act as representatives of the Standard Chartered Private Bank,
and may not be able to offer products and services, or offer advice to clients. They serve as points of contact only.
Standard Chartered Bank is incorporated in England and Wales with limited liability by Royal Charter 1853, Reference number ZC 18. The Principal
Office of the Company is situated in England at 1 Aldermanbury Square London EC2V 7SB. Standard Chartered Bank is authorised and regulated by
the Financial Services Authority under FSA register number 114276 VAT number: GB 244106593.
SEI solutions may be offered internationally by different SEI Investment Company subsidiaries and affiliates according to local regulatory requirements.
This material has not been approved by any of the SEI subsidiaries or affiliates as a financial promotion or marketing communication for any
prospective investor. The information contained in this document has not been independently verified by SEI or any legal entity of the SEI Group of
Companies. This document is not intended in any circumstances as an offer or solicitation to subscribe for or acquire any securities or sale of any
securities in any jurisdiction.

The Futurewealth report 2012-2013: Stepping into the communication age

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