We surveyed 1,200 individuals across Europe to help us understand how investors are managing their finances digitally. What we found was that high net worth individuals present unique opportunities for firms through these investors’ use of digital technology. We spoke with Alfredo Avila to dive into this area further.
What was the most surprising finding from the study on Generation D, digital generation, investors in Europe?
When we look at the findings, it was abundantly clear that the growing reliance on digital technology is making its way into the wealth management industry. In fact, 80 percent of Gen D investors log on routinely for simple services, such as online bill pay and other banking services. More than 75 percent use social media more than once daily.
So, why the focus on high net worth investors in this paper?
High net worth investors represent 30 percent of all individuals we surveyed and their net worth totals eclipse a threshold of $750,000. They’re a segment that’s worth paying attention to.
How are high net worth investors similar to mass market and affluent investors?
Like other investors, a large percentage—87 percent—of high net worth investors uses digital for financial services. Two-thirds are weekly users of social media and more than 40 percent consider themselves early adopters in technology. High net worth investors also prefer face-to-face interaction.
How are high net worth investors different?
High net worth investors are even more interested in learning about investing than affluent and mass market survey subjects – despite the fact that they already consider themselves as knowledgeable about investing. Here’s where they also differ: high net worth investors see educational and planning tools and services as true difference makers, and they also place greater value than their peers on socialization avenues.
How can advisors appeal to high net worth investors?
I’m glad you asked. It’s important that advisors get familiar with the tools and services high net worth investors value. These investors call out education on long-term goals, account category setting and a 360-degree account view as some of the difference makers. Firms can make traction with high net worth investors by offering customized solutions. A one-size-fits-all approach won’t cut it in today’s market.