Individual reaction to change strategies
Responding to the needs and expectations of the emerging and growing wealthy individuals is the most essential strategic element for wealth management advisors. The clients are well aware of the investment options available to them. The changing face of the clients is visibly different in terms of their needs and expectations. The traditional wealth management offered their clients a narrowed list of products and services like mutual funds or insurance, tax advice and estate planning. This approach is slowly giving way to strategic wealth management that is a broader perspective and looks into the client needs first and foremost.
The wealth managers are adopting a more client centric approach today. This approach concentrates on all aspects of wealth management that is required to create and sustain wealth. It tends to link all products and services that are useful for the client at diverse stages. Traditionally, the wealth advisors had specialized area of knowledge in wealth management and the clients were directed to the concerned advisors as per their requirements. The strategic wealth management approach in contrast provides the client with a single point of contact who will guide him through in all aspects of wealth management.
This approach has distinctive advantages since
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The demand for more comprehensive wealth management services is increasing. The clients want a broader range of sophisticated products and services from their wealth managers. The wealth managers of today realize their changing roles today and the importance of giving the best possible service to the client right from the accumulation of wealth to investment planning, tax management, debt handling, budgeting, and asset acquisition to risk management and generate cash flow to support the post-retirement stage.
The final stage of wealth management is facilitating wealth transfer to spouse, family member, or charitable trusts. The focus of wealth managers today is on acquiring the skills and training in lifecycle wealth management that enables to adopt client centric strategic approach. Expectations for the future of the industry Successful operations in the field of wealth management are possible through client acquisition and long term relationship growth.
Gaining customer loyalty and trust is a basic requirement for success in the wealth management industry. Customer satisfaction is attained through quality service and prompt delivery of solutions. Clients have a host of alternatives and options before them in today’s market. This naturally has rendered the complexity of working with such myriad products and services. The tech-savvy wealthy individuals are well aware of the market trends and subsequently demand highly individualized services from their wealth advisors.
The preference for knowledgeable advisors who can handle all aspects of their wealth management needs is increasingly evident since the clients do not want to interact with multiple advisors. The customers prefer a single point of contact that is a thorough professional and highly informed. The demand for quality professionals who understand the client needs and have in depth market knowledge is on the rise. Firms are competing with each other to recruit and retain quality customer relationship managers.
With rising competition the ability to attract, develop and retain quality professionals is becoming a challenging task. Strategic human resource management realizes the importance of client opinion and feedback in their upward growth movement. A dis-satisfied client can result in client loss. Most of the firms give priority to new customer acquisition, increase in assets under management and revenue targets but the importance of client feedback is not realized. The focus of wealth managers remains on growth and retention of existing clients and acquisition of new clients.
Mergers and acquisitions have become quite common practice in the wealth management market. The smaller players in the industry face stiff competition from the bigger multinational players who have distinctive advantages in terms of resources and experience. In such circumstances these institutions find themselves struggling to make their presence felt. Specialization in services that are most comprehensive in the local market context is one means of survival and growth for such institutions.
The alternative is merging with a global brand name that offers mutual advantages to both the parties. Such symbiotic relationship has greater possibilities of success in capturing the local market segment. The global institutions face problems in entering new and emerging markets in the form of entry regulations and social and cultural diversifications. Mergers or acquisition strategy involving a local player gives them the scope to extend their economies of scale and explore new opportunities and establish a strong foothold in the diverse geographical markets.