Table of Contents

Finding wealth management opportunities in the market downturn - Strategies for winning in the new marketplace

Product Code: dmfs2277

Publication Date: 10-Oct-2008

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Overview

Introduction

The current economic environment presents several opportunities for savvy wealth managers to exploit. This report presents 10 actionable recommendations for wealth managers that will increase their revenues. These recommendations take advantage of changes in thinking among high net worth (HNW) customers, and exploit the weaknesses and mistakes of competitors.

Scope

· Draws on Datamonitor's Wealth Management Market Leaders Surveys in Europe and Asia Pacific.

· Makes use of extensive secondary research

Report Highlights

Strategies covered in this report include:

•recruiting good relationship managers from competitors; •raising your public profile by using the media; •focusing on lending to HNWs; •helping clients reduce the cost and risk of mortgages; •assisting clients to position themselves for the inevitable recovery.

Strategies proposed in this report include: •Recruiting good relationship managers from competitors •Raising your public profile by using the media •Focusing on lending to HNWs •Helping clients reduce the cost and risk of mortgages •Assisting clients to position themselves for the inevitable recovery

Reasons to Purchase

· Discover strategies for winning in the marketplace.

· Increase share of wallet and attract new customers.

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DATAMONITOR VIEW	1
CATALYST	1
SUMMARY	1
THE CHANGING CUSTOMER AND COMPETITOR LANDSCAPE	2
The seismic shocks in the financial world have caused real changes in the nature and attitudes of HNWs, while exposing some major competitor weaknesses	2
Clients have become more defensive and demanding	2
The protection of wealth is a key priority for HNWs	2
Clients are shifting their portfolios towards safer havens	3
HNWs are increasingly demanding when it comes to their wealth management service	4
Wealth managers around the world are vulnerable to competition	4
Wealth managers have not got the basics right in the downturn	5
The damage to the brands of leading wealth managers makes them particularly vulnerable	6
Affected private banks face increased dangers of staff defection	7
EXPLOITING THE MARKET OPPORTUNITIES	8
There are at least 10 ways for wealth managers to profit in this new environment	8
Customer acquisition opportunities	8
Actively recruit good relationship managers from competitors	8
Raise your public profile by using the media	9
Leverage customer relationship management to identify HNW clients	10
Redouble efforts at attracting entrepreneurs	11
Launch range of 'safe' products	12
Share of wallet opportunities	14
Focus on lending to HNWs	14
Help clients reduce the cost and risk of mortgages	15
Assist clients to position themselves for the eventual recovery	16
Increase the level of communication with customers	17
Educate clients about alternative investments	19
APPENDIX	21
Definitions	21
Capital protected funds	21
Absolute return funds	21
Exchange traded product	21
Methodology	21
Bibliography	21
Further reading	22
Ask the analyst	22
Datamonitor consulting	22
Disclaimer	23
List of Figures
Figure 1: HNWs have become more defensive in nature	3
Figure 2: The expected change to the allocation of HNW customers' portfolios in two years' time	4
Figure 3: Wealth managers have focused on housekeeping while the house has been burning	6
Figure 4: Brand, image and reputation are key in deciding which wealth manager to use	7
Figure 5: The defection of key staff often precipitates the defection of clients	8
Figure 6: HNWs are looking for proactive advice	10
Figure 7: Leveraging CRM is key to attracting new clients	11
Figure 8: Business/entrepreneurship is particularly important in the emerging economies	12
Figure 9: HNWs are very focused on protecting their wealth	13
Figure 10: The importance of financing needs varies between countries	15
Figure 11: HNWs across the globe are generally open to new ideas	17
Figure 12: Face to face contact is more important in troubled times	19
Figure 13: There is a positive correlation between HNWs' financial knowledge and their uptake of alternative investment products	20

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