FUTURE CLIENT: Considering longer term economic value ...€¦ · • Banking – sizeable cash reserves • Specialist solutions – avoid complex investments • Minimum amount

© Scorpio Partnership 2016 |

Scorpio Partnership – MEETING OF MINDS – November 2016

1

FUTURE CLIENT: Considering longer term economic value

differently

MEETING OF MINDS – LONDON

17TH November 2016



2

The journey of wealth – where are we going?

Wealth Management is Modernising: Consolidation, segmentation and

real-time wealth management

Targeting the Entrepreneur: Just who is this business

owner and what do they want?

2010

2012

2014

2016

2020

The Digital ®evolution is changing the orientation of relationship:

Automated advice vs. Traditional advice

The Client of the Future Who are they, how do they

behave and what is their value?

THE GOLD STANDARD OF WEALTH MANAGEMENT



3

How can I begin anything new with all of yesterday in me?

(L. Cohen)

Apple vs Microsoft



4

Client profiling is evolving faster than many C-suites realise

Client worth Client / bank location Client work status Client behaviour

Note: Banks with highlighting are considered more active in the context of their active marketing campaigns

?



5

A man who views the world the same at 50 as he did at 20 has wasted 30 years of his life

(M. Ali)

Allan Grey



6

Performance-orientated with a core objective of financial security

LEADER

1 2 3

Focusing on personalities that could lead to longer term value is the WM goal



7

My

child

ren

will

follo

wth

eir

dre

ams

reg

ard

less

of f

inan

cial

imp

licat

ions

The

fam

ily w

ealth

will

incr

ease

fro

mg

ener

atio

n to

…W

ealth

will

ena

ble

clo

ser

fam

ilyre

latio

nshi

ps

Som

e of

my

wea

lth w

illb

e us

ed fo

rp

hila

nthr

opy

Wea

lth is

use

d t

o e

njo

y/

spen

d

Wea

lth w

ill in

crea

seo

vera

ll ha

pp

ines

sw

ithin

the

fam

ilyW

ealth

will

allo

w m

ean

d m

y fa

mily

to

try

mor

e en

trep

rene

uria

l…

My

child

ren

will

do

asw

ell a

s I h

ave

don

e

Wea

lth d

oes

not

bec

om

e a

fact

or in

fam

ily li

fe o

r d

ecis

ions

Hopes (Greatest hope)

% o

f clie

nts

• Corporate high-fliers • Strong desire for financial security “play it safe”

• Pre-boarding – brand and reputation • On-boarding – meeting their individual needs

• Banking – sizeable cash reserves • Specialist solutions – avoid complex investments

• Minimum amount of time on financial matters • Prefer a single point of contact

• Family (and children) at the forefront of hopes • Optimistic and hold money rather than spend it

• Competitors – loyal to firm if performance is solid • Marketing preference – tailored communications

HOW DO THEY CONNECT TO WEALTH? WHAT MAKES THEM TICK WITH MONEY? WHO ARE THEIR KEEPERS?

WHO ARE THEY? WHAT DO THEY LIKE? WHAT DO THEY USE?

HSBC Private Bank

Deutsche Bank

JP Morgan

UBS

Barclays

Imp

orta

nce Salary

Business income

Investments

Other

Imp

orta

nce

Imp

orta

nce

Profile: Fast Track LEADERS seek out a transformational engagement over time

Source: Scorpio Partnership HNW Insights 2016



8

The core personality of WM has opportunity but raises certain longevity factors

Convenience-orientated

with a core objective of financial security

SURFER

1 2 3



9

• INCOME VERSUS CAPITAL • CONTACT VERSUS RECOGNITION • CONTROL VERSUS DELEGATION

• ENABLEMENT VERSUS ENGAGEMENT • GOALS VERSUS GAINS • LOCAL VERSUS GLOBAL

HOW DO THEY CONNECT TO WEALTH? WHAT MAKES THEM TICK WITH MONEY? WHO ARE THEIR KEEPERS?

WHO ARE THEY? WHAT DO THEY LIKE? WHAT DO THEY USE?

Head to head: catering to the Fast Track LEADER versus the SURFER

Source: Scorpio Partnership HNW Insights 2016

Imp

orta

nce

Leader Surfer

Imp

orta

nce

Leader Surfer

HSBC Private Bank

Deutsche Bank

JP Morgan

UBS

Barclays

Client usage

Leader

Surfer

My

child

ren

will

follo

w t

heir

dre

ams

rega

rdle

ss o

f fin

anci

alim

plic

atio

ns

The

fam

ily w

ealth

will

incr

ease

fro

mg

ener

atio

n to

gen

erat

ion

Wea

lth w

ill e

nab

lecl

ose

r fa

mily

rela

tions

hip

s

Som

e of

my

wea

lthw

ill b

e us

ed fo

rp

hila

nthr

opy

Wea

lth is

use

d t

oen

joy

/ sp

end

Wea

lth w

ill in

crea

seo

vera

ll ha

pp

ines

sw

ithin

the

fam

ily

Wea

lth w

ill a

llow

me

and

my

fam

ily t

o tr

ym

ore

entr

epre

neur

ial

activ

ities

Imp

orta

nce

Leaders

Surfers

17%

25%

16%

11%

17%

14%

44%

20%

18%

7% 1%

10% Salary

Business income

Investments

Property (excl.primary)Inheritance

Other

Leader Surfer



10

The issue is about considering the long-term commercial value

Average SOW XX%

Leader Average SOW XX%

Surfer

AGE & TENURE OF RELATIONSHIP

REV

ENU

E

Pros: XX

Cons: XX

Pros: XX

Cons: XX

Additional £££s from a longer term relationship?



11

The Million-dollar account before retirement

Total net worth

Annual Management Fee

Source: Scorpio Partnership, Pershing – Digital Horizons report 2015

£1m £2m -£4m £6m £1m

£8k £22.4k £12k £36.8k £57.6k £80k

TOTAL CLIENT VALUE (gross) 20year pre-retirement base income:

£XX c. $XX

Performance @4% p.a SOW – 35% - 65% over 20 years

Fees @80bps p.a

Capital Inflow

Portfolio SOW

Wealth Revenue

Life event

Average SOW XX%

Leader

+ Financial Planning/Review Fees + Selective advisory/credit fees

+ Advocacy to others …



12

Building a business through a behavioural lens is the next dimension of WM

Complex to serve

Simple to serve

High asset opportunity

Low asset opportunity



13

You can neither win nor lose if you don’t run the race

(D. Bowie)

11 …



14

What this boils down to is detail …

Source: Scorpio Partnership



15

All of this is an appetiser for a new way of doing business in wealth management

2010

2012

2014

2016

2020

Wealth Management is Modernising: Consolidation, segmentation and real

time wealth management

Targeting the Entrepreneur: Just who is this business

owner and what do they want?

The digital ®evolution is changing the orientation of relationship:

Automated advice vs. Traditional advice fees

THE CLIENT OF THE FUTURE Who are they, what do they want

and how do they behave?

THE GOLD STANDARD OF WEALTH MANAGEMENT



16

THE END (OF THE PRESENTATION)

Thank you for listening …

Pedro …

FUTURE CLIENT: Considering longer term economic value ...€¦ · • Banking – sizeable cash reserves • Specialist solutions – avoid complex investments • Minimum amount

Documents