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Personal relationship with High Net Worth Individuals (HNWIs) remain key in Wealth Management, though hearts and minds are being won online.
A few years ago, Standard Chartered Private Bank and Scorpio Partnership said in a survey of approximately three and half thousand individuals, that the world’s wealthiest are much more likely to use the internet, mobile applications and other digital media communication tools to create, manage, spend and invest their money.
70% of HNWIs in UK use social media*
This alongside other general trends and reports was a wake up call for organisations that dealt with wealth, Wealth Management and luxury brands to start embracing what they may have perceived as a brave new world. Fast forward 24 months and the world is increasingly social and the ‘digital’ element has moved from ‘nice to have’ to ‘must have’.
Over the years, many of these organisations and brands have invested in digital and are reaping the benefits. Others it seems are watching the world move on or are using old fashioned techniques that are gaining little or no traction, in turn forcing hard won customers to look elsewhere.
Accenture Consulting surveyed 1,200 investors across seven European countries to help Wealth Management firms understand how investors are managing their finances digitally.
Some of the highlights are below. What is clear is the need for wealth brands to start to engage.
- More than 41 percent consider themselves early adopters in technology
- Some 83 percent of HNWI respondents already use digital for financial services
- And, 67 percent are weekly users of social media
Similarly in the World Wealth Report from Capgemini, an industry-leading benchmark for tracking HNWIs, the report found demand for automated advisory services had increased nearly 20%, from 49% in 2015 to 67% in 2016. Additionally, 47% of HNWIs say they now use peer-to-peer platforms at least weekly to find out about investment ideas. In the increasing complex nature of client retention (see graph below), digital should be seen as a tool that helps inform, manage and retain clients.
If any further evidence was needed, it comes from the professional business social network, Linkedin. At Social Media Week London last year, there were some compelling findings that make the case for investment in social engagement for HNWI outreach, watertight.
- Total number of HNWIs increased by more than 13% from 2012-1013 and reached a total of 527,000 – representing a wealth of $1.9bn
- 70% of HNWIs in UK use social media
- 61% use social media for at least one financial purpose
- 70% access social media via mobile
Probably the most practical quote comes from Harmel Rayat, author of “Winning with Commercial Real Estate” said in a recent Forbes article “Social media has become part of the final decision-making process. It’s become imperative, as a wealth and trust-building tool. “The way this group communicates has been completely altered with social strategizing,” He goes on to say, “They’re [Wealth Managers] finally realising the long-term reward of building relationships and trust with such a strategy.
To learn more and social media and search strategies to reach High Net Worth Individuals please contact Reggie James at Digital Clarity.
*Social Media Week London