View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Analysis
November 18, 2020

Major UK wealth managers need to work on their corporate brand image

By GlobalData Financial

COVID-19 is causing increased churn rates in the UK’s wealth market. Almost a third of providers believe that client loyalty to their wealth manager’s brand decreased after the start of the coronavirus pandemic. Large wealth managers in particular need to prioritise fostering client attachment or risk seeing churn rates skyrocket. UK wealth managers must start working on brand.

Free Report
img

Analyze opportunies within the wealth management market in APAC

GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
Enter your details here to receive your free Report.

COVID-19-induced market turbulence is having a significant effect on the UK’s wealth market. GlobalData‘s 2020 UK Financial Advisors Survey found that 13.8% of financial advisers listed the impact of the pandemic as the principle threat to their business, making it the top concern among wealth managers in the UK. In addition, survey data shows that more than two thirds of UK private wealth managers (those serving the HNW) agree that the pandemic and resulting market turbulence are having a negative effect on client retention rates (while only 21.2% disagree).

Increased market volatility and resulting portfolio losses can have a major impact on loyalty. However, data from our 2020 UK Financial Advisors Survey shows that the picture is varied, with larger players disproportionately negatively affected. The proportion of wealth managers reporting decreasing client loyalty jumps from 16.2% among players with fewer than 100 clients to 43.3% among those with more than 1,000 clients. Given the more pronounced economic and financial impacts of COVID-19 on smaller players due to their lack of economies of scale, this is welcome news for this segment.

We also see strong differences with regards to consumers’ perception of and loyalty to their wealth manager’s brand versus their financial adviser. Regardless of company size, the negative impacts of COVID-19 on loyalty were more pronounced on a wealth manager’s brand than on clients’ relationships with their advisers.

Wealth managers need to be aware of the increasingly commoditised nature of the advice market, making personals relationships more important. This means consumers are more likely to have attachment to an adviser rather than a wealth manager’s brand – and should an adviser move on, they are likely to take their clients with them. To minimise this risk, firms should pay greater attention to brand management and seek to bind investors to their brand rather than just an adviser, especially as churn rates are creeping up again.

 

uk wealth managers brand

Source: GlobalData

Free Report
img

Analyze opportunies within the wealth management market in APAC

GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Wednesday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Private Banker International