Deloitte wealth report warns of ‘widening trust deficit’
Deloitte Wealth Management has published a report into the "widening trust deficit" in the ultra and very high net worth wealth management industry, according to a report in the Financial Times.
The report, Reconnecting For Profit, concluded that there is "a widening trust deficit" which is having a negative impact on wealth managers as it restricts profitability and represents a significant obstacle to growing high value services.
The report added that a lack of connection with clients will restrict wealth managers' ability to grow revenue streams, which is fundamental to the future of a wealth management market.
It also highlighted a growing disconnection between high net worth individuals and the wealth management industry as relationship managers are seen as being product pushers, wealth managers’ advice is seen as lacking objectivity and clients are sceptical of wealth managers’ expertise.
Deloitte recommended that new offerings should be based on three core principles: diversification, performance and efficiency. It added that each private client is expected to identify with these principles in different ways and to improve client insight and implement segmentation strategies like financial professionals, entrepreneurs, property owners and inherited wealth.
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