In 2018, FactSet, in association with Scorpio Partnership, carried out a global online poll of 877 investors with an average net worth of $4.88 million. Respondents from the U.S., UK, Singapore, and Switzerland answered questions on the digital transformation of the wealth management industry with a focus on three key areas driving disruption: optimization, visualization, and personalization.
Our findings indicate that optimized technology, improved data visualization, and highly personalized content can empower firms to supply clients with the tools and insights needed for a better digital experience while boosting firms’ competitiveness and advisor efficiency. In analyzing the data, there were clear global trends in how high net worth investors perceive their experiences working with their wealth managers. However, we also observed key regional differences in terms of expectations and outcomes. Because approximately 25% of our global survey respondents were based in Singapore, we can use their responses to make some conclusions about the demands of investors in Asia.
Asian Investors Want More Customization and Real-Time Updates
Overall, survey respondents in Singapore tend to have a more negative view of their current online interactions with their primary wealth manager than respondents in other regions. Nearly one-third (31%) of respondents in Singapore feel that the information on their primary wealth manager’s platform is not customizable to their interests and goals, e.g., news, investment ideas, etc. This compares to the dissatisfaction of just 23% for the entire global survey group.
These investors have ideas for improving their daily interactions with their wealth managers.
More than half of the Singapore respondents want real-time analysis and reporting on their investment portfolio as well as automatic portfolio re-balancing in response to market events. Fifty-three percent want investment suggestions from their wealth manager that are tailored to their areas of interest. As shown in the chart below, the investors from this region are far more demanding about these requirements than the broader survey sample.
While wealth managers pride themselves on offering a “bespoke” experience, only one-third of high net worth investors globally believe their portfolio information is fully customized. U.S. investors are most likely to say the information they receive from their wealth managers feels personalized (approximately 50%), while those in Singapore and Switzerland are less likely. Roughly 25% of those surveyed in Singapore gave their primary wealth management firms high marks; these were the worst rankings of any region in the survey.
Q: To what extent does the information you receive from your primary wealth management firm seem personalized?
The information I receive on my portfolio performance feels customized
The recommendations I receive on investment products and services from my wealth manager feel relevant to my preferences and requirements
The guidance I receive on mitigating investor risk feels tailored to my risk appetite
The insight I receive about my portfolio is actionable and useful
Sources: Scorpio Partnership, FactSet
Not surprisingly, those investors who receive highly personalized portfolio information also tend to be most satisfied with the quality. Globally, one-third of those surveyed said they were satisfied with the information they receive from their primary wealth management firm. While nearly 60% of U.S. investors give top marks for the insight they receive on their investment interests, just 25% of Singapore investors gave their advisors high ratings.
Visualization Is Key for Investors in Singapore
A clearer synopsis and interactive tools are the most desirable improvements to information delivery. Investors in Singapore believe more signposting in written commentary, infographics, and charts to illustrate portfolio performance would improve their engagement with the information provided by their wealth management firm. As shown in the chart below, Singapore survey respondents place a higher value on these visualization features than the global survey sample.
As our survey of high net worth investors illustrates, investors in Singapore are looking for customization, real-time analytics and reporting, and digitized information delivery from their wealth advisors. Compared to other regions, these investors are more dissatisfied with their current online wealth portals and are demanding more digital enhancements. Clearly, there is an opportunity in Asia for wealth management firms that can meet the demands of investors in the region.
Vice President, Director, Digital Wealth Solutions
Mr. Philipp Zerhusen is Vice President, Director Digital Wealth Solutions and Market Development at FactSet. In this role, he is in charge of Market Development as a Director for FactSet Digital Solutions GmbH and is responsible for various market segmentation, strategy, and prizing projects. Based in Frankfurt, Mr. Zerhusen has worked in the financial industry for 25 years. Before his current role, he held various international management and senior enterprise solutions roles across EMEA at Thomson Reuters, founded a number of start-ups, and worked for several years in Asset and Wealth Management at Sal. Oppenheim. Mr. Zerhusen earned an MBA from the University of Cologne and a professional banking diploma.
The information contained in this article is not investment advice. FactSet does not endorse or recommend any investments and assumes no liability for any consequence relating directly or indirectly to any action or inaction taken based on the information contained in this article.