New Report Finds The Rich Are Getting Richer, But Also More Demanding
The report details the situation of high net worth individuals (HNWI), defined as those with $1 million or more in assets.
Bill Sullivan, head of global financial services market intelligence at Capgemini, explains that the report saw record wealth growth to $13.9 trillion in 2013, a 17.7% increase from the previous year. "This is the largest increase we've seen since we started tracking the US in 1997," he says.
Sullivan also mentions that US trust and confidence levels among HNWI - in wealth managers, firms, the market, and regulatory bodies - are the highest in the world. Interestingly, these individuals rated their wealth managers and firms lower in the first quarter of 2014 than previous years, which Sullivan believes is a product of increased expectations, not diminished performance.
"High net worth individuals consider their needs more complex," he says, "and they're looking for digital interaction. Probably the biggest finding was that if they aren't given a great experience with their wealth management, 78% of those under 40 would consider leaving their firms."
The digital interaction, he specifies, isn't necessarily something that will be satisfied by the online, automated investment platforms known as robo-advisors. Instead, these clients are looking for a combination of digital and direct access. "If you think about the effect companies like Google and Apple have had on how people interact in their daily lives, clients ask, 'How come my firm can't interact with me the same way?'"
Below, take a look at where wealth is concentrated in the US, and where HNWIs are putting their money:
Download the entire report at WorldWealthReport.com.