Gen-Y HNWIs tech savvy and information hungry
Technology savvy HNWIs with over four million in wealth exhibit Gen-Y characteristics and are at the forefront of high-engagement online communities. December 11, 2012 | Levina LimPrivate banking in Asia is known as a developing, high potential market with relatively strong revenue inflows. In recent years, revenue margins have dipped due to a reduction of client trading activity and a shift to low-risk strategies, as well as attempts to offer more customized strategies to meet clients’ diverse needs. The segment of cautious and more conservative investors, characteristic of first and second generation Asian High Net Worth Individuals (consisting of the majority of Asian HNWIs) conventionally seek a stable portfolio and non-complex products. Following the 2008 financial crisis, safety of assets are now of greater priority than ROI. "A lot of the money coming in [to the Bank of Singapore] are from those who are looking for higher safety of their deposits, so they can sleep well at night and they don't need to worry about [their deposits] anymore," said Renato de Guzman, CEO, Bank of Singapore. This development however, does not bode well for a fee generation structure that encourages heavy trading. A recent study by SEI, Standard Chartered Private Bank and Scorpio Partnership found HNWIs with over four million in wealth to be at the forefront of technology, possessing on average three to four gadgets, and interestingly, appear to be the most willing to participate in high-engagement, collaborative online communities. This segment of individuals is also more willing to make purchases and investments over the Internet (and other remote channels in general) and spend more time online than any other category of investors. Does this segment bear potential, is it worth tapping into and how? In order for private bankers to outperform the competition, building customer intimacy and deep understanding of clients are crucial. However, the role of advanced analytics and detailed segmentation in identifying potentially profitable segments should not be underestimated. This segment of HNWI possesses characteristics r... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Channels, Retail Banking, Technology & Operations, Wealth ManagementChannels,retail,technology,Wealth Management, Channels,Retail Banking,Technology & Operations,Wealth Management, Keywords:Private Banking, HNWI, Gen Y, Renato De Guzman, Bank Of Singapore, SEI Private Banking, HNWI, Gen Y, Renato de Guzman, Bank of Singapore, SEI
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