The global wealth management industry has been booming with the growth in High Net Worth Individual (HNWI) wealth and population. Growth of HNWIs has been more prominent in emerging markets that were major contributors to the global recovery. Products and services demanded by HNWIs are now much more sophisticated than those offered under normal banking services.
It is now estimated that sixty-four percent of Saudi HNWIs (high net worth individuals) successfully maintained their wealth during the recent economic downturn, of which 31 percent managed their wealth with somewhat growth. With the Middle East being the global region to have recorded positive growth in total HNWI wealth from 2010 to date, found the number of HNWIs looking to invest regionally was 60 per cent higher than in 2011, and that 80 per cent of those surveyed are very likely to make an investment in the region during 2014.
There is no doubt that HNWIs market and those within it are becoming tech savvy. They are spending more time online in charge of their own financing, and are demanding increased communication in this space. Reporting needs of HNWIs is also on the rise as they invest across complex products and demand periodic updates on their holdings.
Firms like EXANTE, a prime brokerage firm with offices worldwide are managing HNWI expectations, they are responding to these changes by updating their business models and re-thinking their long-term, operational strategies. They are leveraging technology platforms such as mobile and social media to develop increased service capabilities that improve communication with HNWIs. They are also investing in an improved client experience across online platforms to both retain existing clients and attract newer ones. In addition, EXANTE are moving away from traditional client reporting tools towards enhanced tools that better enable advisors. EXANTE devotes more efforts towards creating state of the art online platforms to better engage their clients.
Spending is also focused on providing a consistent customer experience across online platforms. The global HNWI population remained highly concentrated in the US, Japan and Germany, which together accounted for 53.0 percent of the world’s HNWIs. The US is still home to the single largest HNW segment in the world, with its 3.1 million HNWIs accounting for 28.6 percent of the global HNWI population. Looking forward, HNWIs are expected to increase their equity and commodities allocations even more in 2014. The global landscape of wealth is changing, and also how wealthy individuals plan for their legacy and philanthropy.