A fifth of clients dissatisfied with wealth manager
Nearly a fifth of clients have become less satisfied with the service provided by their wealth manager over the last year, as the wealthy feel increasingly nervous in the worsening financial climate.
A survey of 200 wealthy clients by wealth consultant Ledbury Research has revealed some surprising insights into the industry, with the wealthiest clients those most likely to be disappointed.
The study found those with over £3m in investable assets are 55% more likely to be dissatisfied than clients with less than £3m.
Another group likely to be dissatisfied are those under 45, who are nearly twice as likely to be dissatisfied than clients aged over 65.
Despite the market conditions, some banks are getting it right with just under 1 in 7 becoming more satisfied with their wealth manager in the last year.
Satisfaction scores tend to be higher with high touch models. As a result, brands with models similar to IFAs have satisfaction scores that are nearly a fifth higher than brands that have a high street presence or investment banking association.
As well as a drop in satisfaction, only 23% of clients will be recommending their private client manager to their peers. A third are wavering and considering whether or not to recommend their manager.
Nearly 60% of clients are pessimistic about the general investment environment over the next year.
A quarter see opportunity in the markets. These optimists are much more likely to be wealthier, and more likely to be male.
James Lawson, director at Ledbury Research said communication is key to client retention.
He said: “It’s exactly during these moments of uncertainty, when banking and finance are nearly legitimate conversation pieces, that banks should be using customer research and engagement techniques to find and encourage their clients to become evangelists."
All the interviewees have at least £500,000 in investable assets. The fieldwork was carried out in September 2008.
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