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Needs of HNW not being met: report

The 12-page report, Finding the New Wealthy, found that the recently rich were in need of good financial advice, as nearly half of the high net-worth respondents surveyed said they had no private bank adviser or wealth manager but would welcome wealth advisory services.

The research by Wealthmonitor and Gulland Padfield was based on interviews with UK-based business owners who had experienced significant liquidity in the past 12 months.

According to the report such individuals were looking for high-quality professional advice and especially interested in the introductions being initiated through other professional advisers.

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Even where their needs had substantially changed, three-quarters of high net-worth individuals still had the same adviser.

Despite many entrepreneurs being technologically savvy, the report also found that the ‘personal touch’ was more valuable than online services.

The report set out recommendations for banks and wealth managers to free up new business from high net-worth individuals, including a more segmented approach, developing a referral network, educating clients and a personal touch.

Florian Pixner, managing director of Wealthmonitor, said: “Financially sophisticated entrepreneurs need more than a focus on wealth conservation. They are also more likely to see wealth management in the context of their commercial activity, family affairs and succession planning, which creates more complex financial needs.”

Table of key findings

Face-to-face meetings were preferable to online marketing

Facebook and Twitter as marketing methods a were a big ‘no’ for entrepreneurs

Entrepreneurs would value attending events and conferences about financial planning

High net-worth individuals want advisers to work in partnership with them

Entrepreneurs want wealth advice at various life stages.

Source: Wealthmonitor

James Robson, independent financial planner for London-based Plutus Wealth Management, said: “What people are looking for is the actual financial planning part of the wealth management process. Private bank relationships have fallen down.

“Lots of people will sell products, private banks can do cash management, but the value people get is not in the fund management or transaction space but in having a plan on what to do with their money – planning on an inter-generation basis. That’s where the value lies.”