Welcome!

News Feed Item

Digital Demands of High Net Worth Individuals Signal Flight Risk for Firms That Fall Behind: World Wealth Report 2014

High Net Worth Individuals Across All Ages, Wealth Levels and Geographies Expect More Digital Capability from Their Wealth Management Firms In Five Years

TORONTO, ONTARIO and PARIS, FRANCE -- (Marketwired) -- 06/18/14 -- Editors Note: There is one video and one image associated with this press release.

Digital has become the pressing mandate for meeting client expectations, reducing flight risks and increasing profitability in the wealth management industry, finds the World Wealth Report 2014 (WWR), released today by Capgemini and RBC Wealth Management. The report's Global HNW Insights Survey(1) found that nearly two-thirds of the world's High Net Worth Individuals (HNWIs)(2) expect to manage most or all of their wealth relationship digitally in five years and would consider leaving their current firm if an integrated channel experience is not provided.

HNWIs across all geographies are demanding digital capabilities from firms, led by those in emerging markets. Eighty-two percent of HNWIs in Asia-Pacific (excluding Japan), 74 percent of those in Middle East and Africa and 70 percent of those in Latin America expect that the majority or all of their wealth management relationships will be run digitally in five years. North American HNWIs have the lowest demand with just over half (58 percent) expecting a primarily digital wealth management relationship in five years.

Digital demands shatter some long-held beliefs

Long-held beliefs that digital is only for the young, less-wealthy or self-directed have been shattered as HNWIs expressed their digital preferences in this year's survey.


--  Wealth: Even the wealthiest HNWIs are demanding digital, with over half
    (55 percent) of those with over US$20 million in investable assets and
    three-quarters (74 percent) of those with US$ 10-20 million expecting a
    largely digital wealth management relationship in five years.
--  Age: While demand is highest among HNWIs under 40, older HNWIs are also
    demanding digital:
     57 percent of those over 40 would consider leaving their firm if an
    integrated experience is not provided (compared to 80 percent of under
    40s).
--  Need for advice: It is not just self-directed HNWIs who are seeking
    digital capabilities from firms. More than half (57 percent) of HNWIs
    who seek professional advice expect their wealth management relationship
    to be primarily run digitally in five years (compared to 78 percent of
    self-directed HNWIs).

"Demands for digital capabilities know no boundaries when it comes to age, wealth, or geography. Clients want their touch points with wealth management firms to be seamless and fully-integrated every time," said Jean Lassignardie, Chief Sales and Marketing Officer, Capgemini Global Financial Services. "These latest World Wealth Report findings reinforce the importance of recognizing digital as a truly disruptive force in the wealth management industry, requiring firms to adapt their business models to meet client expectations."

Digital capabilities that inform or enable transactions most important for HNWIs

Globally, HNWIs prioritize digital interactions that either keep them informed or enable transactions. HNWIs place more importance on accessing information such as portfolio updates or investment research via websites than through in-person or phone meetings. Online capabilities are also favored when it comes to executing transactions, a preference led by those in North America and Asia-Pacific (excluding Japan). In fact, about two-thirds of HNWIs would consider switching firms due to shortcomings in executing transactions or transferring money between accounts.

HNWI preferences become more personal, shifting to face-to-face and phone interactions when it comes to engaging with their wealth managers, particularly for advice. However, the WWR notes that this is likely to change given a high demand for digital capabilities from HNWIs under 40 across all types of interactions with firms, including twice the demand for mobile, video and social media capabilities compared to their over 40 counterparts. This heightened demand puts increased pressure on firms to adopt a digital mindset as younger HNWIs acquire greater wealth and prominence.

"Digital capabilities offer significant opportunities for wealth management firms to enhance their relationships with clients," said M. George Lewis, Group Head, RBC Wealth Management & RBC Insurance. "Firms need to view digital as being essential to delivering a seamless and integrated client experience, and prioritize their investments based on how clients want to engage with their wealth managers and the firm. We have seen firsthand the growing interest in digital capabilities and continue to identify opportunities to incorporate digital technologies that contribute to the client-wealth manager relationship."

Firms need to shift their mindset and engrain digital throughout the client experience

To remain competitive in the future and to fully capitalize on all that digital has to offer to wealth management firms and their clients, firms need to adopt a transformative mindset that engrains digital throughout their interactions with clients. Forward thinking firms will recognize that having advanced digital capability is not optional and will focus on building a digital vision that adapts to how HNWIs want to interact.

Firms that successfully make this digital transformation can deepen client relationships, reduce administrative tasks for wealth managers, drive significant savings, build a reputation as a forward-thinking firm, and ultimately improve the client experience, and boost client retention.

The World Wealth Report 2014

The World Wealth Report from Capgemini and RBC Wealth Management is the industry-leading benchmark for tracking high net worth individuals (HNWIs), their wealth, and the global and economic conditions that drive change in the Wealth Management industry. This year's 18th annual edition includes findings from the most in-depth primary research works available on global HNWI perspectives and behavior. Based on responses from over 4,500 High Net Worth Individuals across 23 countries, the Global HNW Insights Survey explores HNWI confidence levels, asset allocation decisions, perspectives on driving social impact, as well as their wealth management advice and service preferences.

For more information, explore our new interactive website at www.worldwealthreport.com.

About Capgemini

With more than 130,000 people in over 40 countries, Capgemini is one of the world's foremost providers of consulting, technology and outsourcing services. The Group reported 2013 global revenues of EUR 10.1 billion. Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business Experience™, and draws on Rightshore®, its worldwide delivery model. Learn more about us at www.capgemini.com.

Rightshore® is a trademark belonging to Capgemini

About Capgemini's Financial Services Global Business Unit

Capgemini's Global Financial Services Business Unit brings deep industry experience, innovative service offerings and next generation global delivery to serve the financial services industry. With a network of 24,000 professionals serving over 900 clients worldwide Capgemini collaborates with leading banks, insurers and capital market companies to deliver business and IT solutions and thought leadership which create tangible value. More information is available at: www.capgemini.com/financialservices.

Connect with our wealth management experts in the Financial Services section of Capgemini Expert Connect at http://www.capgemini.com/experts/financial-services.

The World Wealth Report 2014 and other Capgemini thought leadership is available for your iPad through Capgemini's Financial Services Insights app. Download it through iTunes athttps://itunes.apple.com/us/app/capgeminis-financial-services/id668885174?mt=8.

Connect with Capgemini:

http://www.capgemini.com/insights-and-resources/blogs

http://www.twitter.com/capgemini

http://www.facebook.com/capgemini

http://www.linkedin.com/company/capgemini

http://www.slideshare.net/capgemini

http://www.youtube.com/capgeminimedia

About RBC Wealth Management:

RBC Wealth Management is one of the world's top 10 largest wealth managers(i). RBC Wealth Management directly serves affluent, high-net-worth and ultra-high net worth clients in Canada, the United States, Latin America, Europe, the Middle East, Africa, and Asia with a full suite of banking, investment, trust and other wealth management solutions. The business also provides asset management products and services directly and through RBC and third party distributors to institutional and individual clients, through its RBC Global Asset Management business (which includes BlueBay Asset Management). RBC Wealth Management has more than C$690 billion of assets under administration, more than C$426 billion of assets under management and approximately 4,400 financial consultants, advisors, private bankers, and trust officers. For more information, please visit www.rbcwealthmanagement.com.

ABOUT RBC

Royal Bank of Canada is Canada's largest bank, and one of the largest banks in the world, based on market capitalization. We are one of North America's leading diversified financial services companies, and provide personal and commercial banking, wealth management services, insurance, investor services and capital markets products and services on a global basis. We employ approximately 79,000 full- and part-time employees who serve more than 16 million personal, business, public sector and institutional clients through offices in Canada, the U.S. and 42 other countries. For more information, please visit rbc.com.

RBC supports a broad range of community initiatives through donations, sponsorships and employee volunteer activities. In 2013, we contributed more than $104 million to causes worldwide, including donations and community investments of more than $69 million and $35 million in sponsorships. Learn more at www.rbc.com/community-sustainability.

(i)Scorpio Partnership Global Private Banking KPI Benchmark 2013. In the United States, securities are offered through RBC Wealth Management, a division of RBC Capital Markets, LLC, a wholly owned subsidiary of Royal Bank of Canada. Member NYSE/FINRA/SIPC.

To view the video associated with this press release, please visit the following link:

https://www.youtube.com/watch?v=EMsGSxUvpbw

To view the image associated with this press release, please visit the following link:

http://www.marketwire.com/library/20140613-RBC_WWR_Digital_Demands_FINAL_SM-800.jpg

(1) Capgemini, RBC Wealth Management, and Scorpio Partnership Global HNW Insights Survey 2014

(2) HNWIs are defined as those having investable assets of US$1 million or more, excluding primary residence, collectibles, consumables, and consumer durables

Contacts:
Capgemini
Mary-Ellen Harn (North America)
+1 704 490 4146
[email protected]

Capgemini Contacts:
Weber Shandwick for Capgemini
Courtney Finn (North America)
+1 952 346 6206
[email protected]

Weber Shandwick for Capgemini
Cortney Lusignan (EMEA)
+44 (0) 20 7067 0764
[email protected]

RBC Wealth Management Contacts:
Claire Holland (North America)
+1 416 974 2239
[email protected]

Timi Oni (EMEA)
+44 (0) 20 7653 4516
[email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
"MobiDev is a Ukraine-based software development company. We do mobile development, and we're specialists in that. But we do full stack software development for entrepreneurs, for emerging companies, and for enterprise ventures," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
What's the role of an IT self-service portal when you get to continuous delivery and Infrastructure as Code? This general session showed how to create the continuous delivery culture and eight accelerators for leading the change. Don Demcsak is a DevOps and Cloud Native Modernization Principal for Dell EMC based out of New Jersey. He is a former, long time, Microsoft Most Valuable Professional, specializing in building and architecting Application Delivery Pipelines for hybrid legacy, and cloud ...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Me...
SYS-CON Events announced today that Cloud Academy named "Bronze Sponsor" of 21st International Cloud Expo which will take place October 31 - November 2, 2017 at the Santa Clara Convention Center in Santa Clara, CA. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud com...
SYS-CON Events announced today that TechTarget has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TechTarget storage websites are the best online information resource for news, tips and expert advice for the storage, backup and disaster recovery markets.
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to w...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
"We focus on composable infrastructure. Composable infrastructure has been named by companies like Gartner as the evolution of the IT infrastructure where everything is now driven by software," explained Bruno Andrade, CEO and Founder of HTBase, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"Tintri focuses on the Ops side of the DevOps, which basically is pushing more and more of the accessibility of the infrastructure to the developers and trying to get behind the scenes," explained Dhiraj Sehgal of Tintri in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business - from apparel to energy - is being rewritten by software. From planning to development to management to security, CA creates software that fuels transformation for companies in the applic...
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
Hardware virtualization and cloud computing allowed us to increase resource utilization and increase our flexibility to respond to business demand. Docker Containers are the next quantum leap - Are they?! Databases always represented an additional set of challenges unique to running workloads requiring a maximum of I/O, network, CPU resources combined with data locality.
The current age of digital transformation means that IT organizations must adapt their toolset to cover all digital experiences, beyond just the end users’. Today’s businesses can no longer focus solely on the digital interactions they manage with employees or customers; they must now contend with non-traditional factors. Whether it's the power of brand to make or break a company, the need to monitor across all locations 24/7, or the ability to proactively resolve issues, companies must adapt to...