High-net-worth population wants 'hybrid wealth management'

Global high-net-worth individuals (HNWIs) are looking for a mix of digital and direct interaction when it comes to wealth management, according to research from Capgemini.

The organisation said that HNWIs have become more involved in their investments over the past 25 years and now “seek more and broader advisory support.” It suggested that as tech players move into the wealth management space, firms in the industry need to move toward technology-enabled advice and hyper-personalised business models.

The 25th anniversary addition of the organisation’s World Wealth Report found that the global population of HNWIs grew by $6.3 million last year , reaching 20 million people. HNWI wealth jumped by 7.6 per cent to $80 trillion.

North America surpassed Asia-Pacific to become the 2020 leader in both HNWI population and wealth.

The report found that 34 per cent of HNWIs actively use WealthTech services.

Capgemini said that talent preparedness is important in today’s competitive market. But according to its report, 63 per cent of advisors surveyed say they’re not satisfied with their firm’s efforts to provide tools/training to meet client needs.

“The wealth management industry must push its frontiers to capture customer mindshare and best serve high net worth clients accustomed to BigTech convenience and personalisation,” said Anirban Bose, financial services strategic business unit chief executive & group executive board member, Capgemini. “Investing in technology and talent is a critical need for wealth management firms to maintain their market share as WealthTechs continue to grow and BigTech entry into the space looms.”

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