Client Affairs

Differentiation Is Key As Wealthy Investors Get More Hands-On With Their Finances - Global Study

Eliane Chavagnon, Editor - Family Wealth Report, February 9, 2015


To succeed in an intensifying competitive environment, financial service providers must look beyond product satisfaction and focusing on building a more "complete client experience" that prioritizes advice and service - CEB.

Findings from a recent study suggest that “proactive financial management” among the global high net worth is on the rise, as wealthy individuals are increasingly hands-on with their finances.

Just over half (51 per cent) of wealthy individuals surveyed for CEB's latest Consumer Financial Monitor Study were proactively managing their finances in the second half of 2014, up by 11 per cent since the firm began measuring this in 2011.

CEB, a member-based advisory firm, said it tracks three measures of “proactive financial management:” did the client keep a formal written budget to manage expenses; have a formal written financial plan to achieve long-term goals; and use a financial advisor.

The firm acknowledged that its use of the terms “formal” and “written” means its measure of “proactive financial management” is quite stringent, hence the seemingly low 51 per cent above-mentioned figure.

“It captures clients who are highly engaged in managing their personal finances,” CEB managing director Peter Aykens told Family Wealth Report. What is notable in the data, he said, is that all three measures hit two-year highs in 2014. 

“Clearly, high net worth clients are managing their finances in a more systematic and 'hands-on' fashion today than they did even two to three years ago,” Aykens said.

CEB's global survey of over 18,000 consumers measured sentiment on issues using a net rating score reflecting degrees of satisfaction/dissatisfaction to produce a possible score of 100 (completely satisfied) to -100 (completely unsatisfied), with 0 representing a neutral score.

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