Summary

Global HNW market comprises over 10 million plus individuals, the majority of whom are located in North America (52.3%) - predominately in the US (50.3%), making the country the largest target market globally. However, growth is more pronounced in emerging markets in Latin America and Asia Pacific.

The global number of HNW individuals is forecast to expand at an average annual growth rate (AAGR) of 5.7% between 2017 and 2021. This compares to 8.2% in Latin America and 6.5% in Asia Pacific. Being home to less developed wealth markets, private banks will also be faced with less competition in these markets.

HNW entrepreneurs are an almost equally large target group as professionals, and dedicated target programs aimed at this segment are a must across the globe. However, the entrepreneurial spirit runs particularly high in Eastern Europe.

The region’s start-up scene was stagnant until only a few years ago, and while Warsaw or Istanbul cannot compete with hubs in Western Europe, such as London or Berlin, early-stage investment in the region has surged from $10m in 2011 to $283m at the end of 2016 (Venture Beat, 2017). However, while all three countries have produced a large number of HNW entrepreneurs, significant differences remain, calling for a differentiated targeting strategy.

Key findings included in this report -

  • 52.3% of global HNW investors reside in North America, but growth is more pronounced in Latin America, where the number of HNW individuals is forecast to grow by 48% between 2017 and 2021.
  • Professionals make up 5 million individuals of the Global HNW market.
  • 28.3% of HNW clients have been acquired through client referrals, making it the most successful channel.
  • A longstanding advisor relationship is the most effective means of client retention, followed by portfolio performance and a firm’s brand image.



The report "HNW Targeting and Retention Strategies", analyzes and sizes key segments of the global HNW market, and provides detailed recommendations how to best target and service these individuals. The report also provides a detailed discussion on the effectiveness of different HNW client retention strategies. It is based on our proprietary Global Wealth Managers Survey.

Companies mentioned in this report: US Bank, DBS, BNP Paribas, Optymyze, CBA, Deutsche Bank, Morgan Stanley, ICBC, China Construction Bank, Bank of China, Agricultural Bank of China, Wells Fargo, China Merchants Bank, Aldermore


Scope

  • 52.3% of global HNW investors reside in North America, but growth is more pronounced in Latin America, where the number of HNW individuals is forecast to grow by 48% between 2017 and 2021.
  • Professionals make up 5 million individuals of the global HNW market, 4.8 million being entrepreneurs.
  • 28.3% of HNW clients have been acquired through client referrals, making it the most successful channel.
  • A longstanding advisor relationship is the most effective means of client retention, followed by portfolio performance and a firm’s brand image.




Reasons To Buy

  • Understand the size and service requirements of key client groups
  • Develop and enhance your client targeting strategies using our proprietary data on the effectiveness of various targeting strategies across key target groups
  • Minimize customer churn rates by gaining a detailed understanding of the effectiveness of different retention tools
  • Tailor your product portfolio to match demand patterns across the different segments discussed
  • Understand what selected competitors are doing to successfully reach out to different target groups.