Academic journal article ABA Banking Journal

Rubbing Elbows with the Wealthy ... Digitally: Why Technology Is Key to Tapping More High-End Clients

Academic journal article ABA Banking Journal

Rubbing Elbows with the Wealthy ... Digitally: Why Technology Is Key to Tapping More High-End Clients

Article excerpt

FINANCIAL INSTITUTIONS have some work to do in using digital technology to connect with their high-end clients. According to The Futurewealth Report: The Digital Future of Client Relationships, which surveyed 3,477 respondents globally with an average of $1.9 million in net worth, banks and financial firms ranked lower than other luxury brands with a rating of only 71 out of 100. On the other hand, the study found that banks had improved the most among luxury brand industries in establishing personal connections, with an increase of 7.2% over the last year.

The report, produced by SEI, Scorpio Partnership, and Standard Chartered Private Bank, is one part of a four-part series that aims to better understand the ambitions and attitudes of the world's up-and-coming wealthy (more at http://tinyurl.com/ futurewealth-ababj).

Most banks serve clients throughout the economic strata--often with specific units dedicated to private banking and wealth management. But banks can still find success in specifically marketing their services as a luxury option.

"Like any business, you just need to be smart about where you apply that luxury label to the brand, so that it fits the segment you're serving and doesn't dilute its power across all segments," says Al Chiaradonna, senior vice-president of SEI's Wealth Platform solution.

One of the ways to market such a luxury option is by switching focus. "We have the most affluent population that we've ever had in America, and these people are really looking for advice. They don't want to be sold an annuity, or a mutual fund, or a life insurance policy," points out Barry Dayley, executive vice-president of Money Concepts, a wealth management company. "More than anything, they want advice from a trusted source."

According to Dayley, the banking industry is ready for this switch in focus from products to advice. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.