The world’s richest women are poorly served by wealth managers, according to new research by Orbium, a global consulting business and technology provider for the wealth management industry.
The Orbium Wealth Management C-Level survey 2018 revealed that 78 percent of executives feel the needs of wealthy high net worth and billionaire women are currently not being adequately addressed. Executives also highlighted they were falling short in addressing first generation entrepreneurs.
Wealth managers with a universal retail, asset management arm, and investment bank were the worst performing enterprises whilst family offices proved better serving the needs of female investors.
Ian Woodhouse, head of strategy and change at Orbium, said: “While many wealth management firms acknowledge that next generation clients, including women investors comprise a growing portion of their market, few seem to have adequately changed their advisory model to meet women’s needs.
"In order to create compelling value propositions that resonate with women of all types, wealth managers need to better understand their investment goals. Currently, only 17 percent of participants offer their clients digital interaction with relationship managers, but by 2020, 76 percent plan to offer this to meet the needs of next generation clients, according to our survey, who are used to the digital world and will expect it from their wealth managers."
The survey revealed that wealth managers need to significantly improve their use of digitalisation and converting information into digital format, This would enable female investors and next generation investors to interactively review, with their relationship managers, their assets and portfolio on their tablet or mobile device, receive timely education and ideas and, in some cases, change asset allocation.
Orbium’s Survey also showed that currently the industry is struggling to survive with only 25 percent of private banks and wealth managers having a sustainable business model that has both good revenue margins and good cost control.
It was also revealed that executives plan to respond by significantly rebalancing their business models to be more focused in their approach to serving both next generation and traditional clients. They expect technology can help to enable their relationship managers to better digitally interact with clients and plan to invest to upgrade both their client facing front and back office core systems and better manage data to deliver enhanced client insight and personalisation.
Separately, according to the survey, wealth managers expect to have to operate in a more volatile, uncertain, complex and ambiguous environment, including anti-global elite sentiment and Brexit.
A majority favour Brexit, with 61 percent of executives agreeing that Brexit would bring benefits across Europe and Asia. UK wealth managers were the highest to agree with Brexit, followed by Asia. Executives in other parts of Europe and Switzerland, however, are not in favour.