What consultants can learn from super-rich clients

High-net-worth investors place high demands on their financial advisors. The super-rich in particular hope to obtain a full-service platform from their wealth management agency.They are increasingly looking for consultants who can provide them with global wealth management services, because many of them have large amounts of wealth outside of the United States

Key points

  • Millionaires to billionaires usually do not have time to manage their financial empire, nor do they have time to seek consultants who specialize in serving high-net-worth clients.
  • Many wealthy people keep their assets overseas, so unique challenges arise to minimize taxes and establish a localized presence wherever assets might be stored.
  • Most importantly, at this level of wealth management, services should be top-notch and relevant.

Focus on the world, based on the local

In order to meet these needs, many large wealth management companies are seeking to adjust and develop their businesses to meet the unique needs of clients who have overseas assets but want to receive services locally. Deutsche Bank’s wealth management group, especially Deutsche Asset and Wealth Management, found that its super-rich clients now request access to various departments within the investment bank to supplement the wealth management services they are seeking to invest in. America, Europe and Asia.

With a large number of new financial advisors entering the market, brokerage companies and banks are no longer the strongholds of the wealth management industry. Registered Investment Advisors (RIA) are now providing funding to these companies, which helps to improve the quality of products throughout the industry.

face challenge

Staying ahead of the competition requires retaining top talent. This also means ensuring that these top advisors can meet the needs of their clients and keep pace with the ever-changing financial environment. After the financial crisis, financial advisors learned that they must pay more attention to customer needs than ever before and focus more on building these relationships.

This is because today’s high-net-worth clients understand the market and money management services better than in the past. They are now placing higher demands on the level of sophistication they want their consultants to have and the level of trust they are willing to give to their consultants. With this in mind, wealth management companies should also wisely retain their most talented consultants and continue to cultivate these talents over the years.

Size is not everything-so is service

Compared to smaller boutique companies, larger consulting firms may be better able to meet the needs of ultra-high net worth investors because they can utilize multiple departments in meeting customer needs. But bigger does not always mean better. For customers, what is more important is the services these companies can provide and the wealth management solutions they can provide.

Nowadays, clients are also asking for more advice-oriented relationships with their wealth advisors, and they need more risk management consulting. The financial crisis has made many ultra-high-net-worth clients pay more attention to preserving wealth rather than creating more wealth. Nevertheless, they are still opportunistic in investment. In response, some companies focus on creating investment models that can quickly respond to new trends and developments in the market and meet the needs of the company’s most complex customers.

Prepare for future growth

In response to changing trends in wealth creation, Deutsche Bank is seeking to develop its West Coast wealth management business and increase its services in the country’s energy belt. It will also focus on increasing its brand awareness in North and South America.

Bottom line

Financial advisers who cater to the super-rich should consider expanding the complex solutions they provide, improving the relationship between clients and advisers and providing global services to better attract and retain clients.


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