Expert Panel Issues Wake Up Call to Wealth Management Industry - As new generation HNWIs move away from traditional inheritance trends

23 April 2012

Panellists debating “Changing Demographics – are Wealth Managers doing enough?” at the recent event hosted in London by Belgian financial solutions company, BSB, highlighted a significant shift in inheritance planning from high net worth individuals. The debate emphasised the need for the industry to adopt more customised wealth management practices and move with the times.

In a bid to counteract the creation of the ‘trust fund brat’ generation, an increasing number of parents are approaching intergenerational wealth transfer in a radically new way, according to expert panellist Andrew Haig, managing partner of the entrepreneurs client group at Coutts. He argued that the wealth management industry is not doing enough to support this shift, maintaining a traditional approach as opposed to creating a clear strategy for starting a long-term relationship with the next generation. PwC’s Andrew Hogan echoed the theme, commenting that “we see wealth getting younger.

The younger segments have different needs and a different perception of good value. We need something that is more tailored for the next generation.” He identified that this could present the industry with an important opportunity, particularly to those organisations that recognise the change and address it intelligently, adopting a more innovative and creative approach. Andrew Hogan cited the relevance of adopting more customised wealth management practices to support an increasingly philanthropic and longer-living generation of high net worth individuals, who are looking for alternatives to the traditional concept of keeping wealth in the family.

Commenting on behalf of event sponsor BSB, Jon May highlighted the role that innovative technology can play in supporting the industry’s evolution in line with new challenges and change management:

“Understanding your client and providing a truly tailored service is paramount for today’s wealth managers, as they battle with difficult investment conditions and an increasingly demanding and knowledgeable client base. There is real demand for new tools that can streamline the investment process, while also supporting the demands of today’s more technology-aware clients for better reporting and access to their portfolio information – when and how they would like it presented. As Andrew Hogan said at the event, HNWIs expect an ever-higher level of red carpet service – putting the emphasis on having the right tools in place to fulfil these expectations.

“BSB launched its Soliam wealth management solution into the UK market last year, in recognition of the changing market requirement. We have long-standing experience in providing the degree of platform integration and flexibility that will be crucial for wealth management practice in future. Our solution combines comprehensive CRM functionality with seamless front to back office facilities, which simply industrialise the core processes and leave the wealth manager free to focus on providing a highly individual client service. It also enables the use of external asset managers and support for multiple custodians. We believe that technology can provide the all-important key that will enable wealth managers to evolve with their clients, rather than getting left behind with the times.”

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development