Wealth has turn out to be much more concentrated on the prime of the earnings spectrum over the previous decade, and wealth managers aiming to develop their practices have clearly taken discover.
The truth is, in line with Cerulli Associates researchers Chayce Horton and Matt Zampariolo, the high-net-worth and ultra-high-net-worth market is now a robust focus for a lot of advisors and brokers, together with those that have beforehand concentrated within the mass-affluent consumer phase.
Serving extremely rich purchasers has its apparent benefits, together with doubtlessly increased margins and a quicker asset development fee, the pair defined Wednesday throughout a webcast. The technique additionally comes with massive challenges, together with increased service expectations and the potential for critical disruption to the enterprise if an excessive amount of of the observe’s success is tied up in a small variety of massive relationships.
As such, it can be crucial for advisors and agency leaders to grasp how the HNW and UHNW market has advanced, particularly within the wake of the Nice Recession and the COVID-19 pandemic. Getting the strategy proper can unlock critical development, Horton and Zampariolo argued, whereas making errors can alienate current purchasers throughout the wealth spectrum.
See the accompanying slideshow outlining 10 key themes and ideas that Horton and Zampariolo mentioned through the Cerulli webcast.