Regaining the trust of HNW and UHNW investors with advice: independence, objectivity or quality


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Presentation by Sebastian Dovey, Managing Partner of Scorpio Partnership, global leaders in supplying financial research, world wealth reports and HNW insight to the wealth management industry.

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Regaining the trust of HNW and UHNW investors with advice: independence, objectivity or quality

  1. 1. Regaining the trust of customers with advice: independence, objectivity or quality Presentation by Sebastian Dovey, Managing Partner Scorpio Partnership
  2. 2. 4 years of digital insight with opinions from over 12,000 multi-millionaires in over 30 financial markets. These are the world’s most valuable customers. They want to be responded to.
  3. 3. Rising costs Falling revenues Growing competitive influences Flat net new money Client opinion Source: Scorpio Partnership
  4. 4. For HNWs managing wealth today is 90% emotional and 10% mathematical Source: Scorpio Partnership
  5. 5. To reach out to the customer today, and in the future, there needs to be a recalibration of the client centricity in the business model Source: Scorpio Partnership
  6. 6. Empathy Trust Independence ObjectivityCommunication Transparency Source: Scorpio Partnership
  7. 7. What is the most important aspect of wealth management firms to demonstrate empathy to clients? Source: Scorpio Partnership, SEI Empathy
  8. 8. How important is independence to your firm? How important is independence to your client? Source: Scorpio Partnership, SEI Independence
  9. 9. 1% 20% 32% 4% 12% 15% 16% No product pushing Open architecture Business controls Transparent investment process Fee structures Transparent reporting Compensation strategies Client-centric advisory process How do you demonstrate independence to your investors? How can a wealth management firm best demonstrate independence to you? Industry View Investor View Source: Scorpio Partnership, SEI Independence
  10. 10. How would you demonstrate your objectivity in the context of your professional services and wealth management offering? Source: Scorpio Partnership, SEI Intellectual skills are at the foundation of the concept of objectivity Objectivity
  11. 11. • The marketing approach of most firms projects one message: • “We focus on the client at any cost” • Product dumping delivers another message: • “We cannot afford to focus on clients at any cost” • Blaming bad practices breaks the future industry message: • “They cover their costs by not focusing on the client business because they can then afford it. We are unique as we focus on clients at all costs” Objectivity Source: Scorpio Partnership
  12. 12. 0% 10% 20% 30% 40% 50% 60% 70% 80% Brand and reputation Experience of professionals Privacy Credit Rating Best price Convenience All-in-one product and service offering Size of institution Advice proposal Branch network Onshore services Marketing materials Offshore services Referral from family Referral from friends Client response Q: What are the biggest influencers when selecting a wealth manager? Communication Source: Scorpio Partnership
  13. 13. 42% of HNWIs surveyed use Twitter 83% of HNWIs surveyed use Facebook 24% of HNWIs surveyed use LinkedIn 50% of HNWIs expect to use the internet more for investment choices in the future. 78% of HNWIs expect their need for financial advice will either be the same as today (significant) or grow (significantly) Communication Source: Scorpio Partnership
  14. 14. Reporting Showing, explaining and validating investment decisions Knowledge Explanation of the investment process Product Knowledge sharing on all relevant investment options Fees Frank dialogue about fee structures and no hidden extras Portfolio reporting Delivery of transaction, tax and fee information Client education Fact sheets, scenario analysis, seminars Product Selection Simplifying product offerings Fee structures All-in-one fees High priority Medium priority Low priority Client expectations Industry focus Source: Scorpio Partnership, SEI Transparency
  15. 15. Confirming and maintaining trust is all about knowing the client Source: Scorpio Partnership, SEI What are the priorities for the future for an improvement of trust? Conclusion
  16. 16. Questions?
  17. 17. Sebastian Dovey, Managing Partner 14 Waterloo Place London, SW1Y 4AR T: +44 (0) 20 7811 0120 Twitter: @whatwealthneeds SEEK THINK SHAPE CREATE SEEK • Client research • Advisor research • Market mapping • Company/Intermediary research • Brand identity audits THINK • Product/Service development • Business case development • Concept solutions • M&A diligence • Brand identity development SHAPE • Market entry solutions • Media and Event solutions • Training and Education solutions • Sales & Marketing campaigns • Brand identity solutions CREATE • Campaign management • Change management • Strategic marketing • M&A implementation • Specialist consulting