Wealth Management: Strengthening the Advisor-Client Relationship

Despite nearly a decade of negative real returns on equity and a string of bear markets, global wealth has more than doubled since 2000, reaching an all-time high of $241 trillion last year.

That’s according to the 2013 Credit Suisse Wealth Report, which forecasts that global wealth is expected to grow 40% over the next five years, reaching $334 trillion by 2018.

The vibrant expansion in global affluence is being fueled by a combination of factors: the continuing expansion of emerging markets (which is estimated to account for 29% of the projected growth) along with the rise of personal wealth in the US as the housing and equity markets continue to make gains.

The rise in international prosperity is creating abundant opportunities for wealth management financial advisors to strengthen relationships and outcomes with existing clients and to attract new customers. For instance, only 18% of US adults are “very confident” about having enough money to retire comfortably, according to the Employee Benefit Research Institute.

An effective way to attract and convert prospects is by leveraging the volume, velocity, and variety of real-time data and analyzing it against historical data housed in data warehouses.

Blending historical and real-time data with analytics and data visualization techniques can enable wealth managers and financial advisors to see which products are most profitable. They can then use these insights to craft messaging and offers to top prospects who are looking to build deeper retirement portfolios or otherwise expand their wealth.

Financial advisors who have the right tools and information can also strengthen their relationships with existing clients. By being able to view the historical performances of their clients’ portfolios and compare them against new investment opportunities, financial advisors can offer the right products for their clients that mesh with their risk appetites.

The advisor-client relationship is a two-way street. Customers who are pleased with their returns often value their relationships with their financial advisors. However, the average age of advisors in the US is 50 and many financial advisors may retire before their clients do, according to a study by Accenture.

For wealth management firms that are intent on retaining their top-performing advisors and keeping profitable clients satisfied, organizational leaders can use data and analytics to determine who their top performers are and to craft effective compensation and incentive packages.

Next Steps:

  • We invite you to watch our complimentary, on-demand webcast, “Optimize Your Advisor-Client Relationships. Build Greater Wealth,” presented by Sean O’Dowd, Global Director, Capital Markets, Teradata and Jagrata Minardi, TIBCO Spotfire, Solutions Consultant. In this webcast you will learn how you can quickly cut through your data silos and extract meaningful answers to long-standing questions, so you are optimizing your advisor-client relationship to greater profitability.
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