Next Generation Customer Journey In Wealth Management High Tech or High Touch?

Smarter Engagement Strategies For Wealth Managers To Build And Retain High Net Worth Clients

September 20, 2016

By 2020, Millennials and Generation X will control $30 trillion of investable assets. Millennials’ different attitudes to wealth and expectations of customer experience are commanding major changes within the wealth management industry.  Other forces that are uprooting the business models of today’s wealth managers include fintechs challenging incumbents and robo-advisors providing opportunities to automate portfolio allocations. So what engagement strategies can wealth managers use to build and retain high net worth clients along the next generation customer journey in wealth management?

LinkedIn and Greenwich Associates conducted a study of 469 Millennials, Generation X, Baby Boomers and 70 + years old across United States, United Kingdom, France and the Netherlands to answer this question. The study further broke down these generations into subgroups of high net worth individuals (HNWIs), which refers to those with investible assets in excess of $1 million, excluding primary real estate. This blog focuses on 202 respondents from the United States.

The Relationship Between Wealth Managers And Their High Net Worth Clients Is Evolving

We are seeing the wealth manager and their HNW client relationship evolving from a bilateral relationship, where the wealth manager would understand their clients' financial needs and recommend an investment strategy, to a more dynamic relationship where technology innovation, real-time notifications of portfolio movements and clients being more hands-on are playing a role.

The Next Generation Wealth Management Customer Journey For High Net Worth Clients

To better understand the potential impacts of new technology as a whole, it is important to examine the full customer journey as a HNWI seeks out, engages and ultimately transacts with a new wealth manager.

Keeping The Relationship Alive

With initial investment decisions made, HNWIs look to their wealth advisors to keep them updated on what’s going on in the market and for recommendations on what they should do next. These needs are relatively consistent regardless of investable assets, but some generational differences do exist.

For a complete look at the research study, download Next Generation Customer Journey In Wealth Management: High Tech or High Touch?