SEI Guru Says Wealth Managers Should “Make Over” Business Models

Paul Das

15 March 2005

Al West, the man behind SEI Investments and one of America’s most successful investors, believes wealth managers need to “make over” their business models in order to fully capitalize on the growing opportunity that wealthy “Boomers” represent. "Wealthy Boomers have a different view than previous generations. They see their wealth as the means to an end, rather than the end itself," Mr West said at a recent wealth management conference in the US. He added: "Wealthy Boomers are more interested in using wealth to improve their lives and the lives of those around them. To serve them effectively, you will have to consider their whole life issues, not just their financial issues." Mr West further believes that there are fundamental differences between wealthy Boomers and prior affluent generations. "Sure the size of the market is significant…but wealthy Boomers are going to have a greater impact on this industry than their sheer numbers will dictate." SEI’s chairman and chief executive said to conference attendees: "If you are really serious about providing a completely new, life-oriented client experience to wealthy Boomers, you will have to break out of the mold of traditional industry thinking. This is not a situation where you will build the products and services and the market will come. Wealthy Boomers are a new breed of client. The change has to be ingrained in your culture. You can't just talk the talk; you have to walk the walk.” He added: "Banks will need to undergo a significant restructuring in order to serve the needs of the wealthy Boomer. This effort will involve a considerable commitment…but the payoff will be even greater." Boomers make up one-third of the American population. They are the wealthiest generation ever; by 2017 they will receive the largest intergenerational wealth transfer in history, estimated at up to $5 trillion in today's dollars.