Targeting and Servicing High Net Worth (HNW) Investors – Strategies, Investment Behaviors, Investor Proclivities with regards to Risk, Loyalty, and Product Uptake
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This report analyzes and sizes key segments of the global HNW market, providing detailed recommendations on how best to target and service these segments. It explores how investment behaviors differ across different target segments, and highlights different investor proclivities with regards to risk, loyalty, and product uptake. It is based on our proprietary Global Wealth Managers Surveys.
A key focus for most wealth providers, HNW entrepreneurs constitute the second-largest target segment (after professionals), followed by females and expats, who represent an almost equally large target market. Inheritors are the smallest segment; however, providers reaching out to female inheritors should not encounter any trouble growing their business given that this segment is often overlooked. While there is overlap between segments, distinct investment and servicing preferences call for a differentiated servicing strategy. For example, female HNW investors are more risk averse than other segments, but they tend to be comparatively loyal to their wealth manager. On the flipside, inheritors tend to be the least loyal, meaning early and ongoing engagement is critical.
Scope
– 53.4% of global HNW investors reside in North America, but growth is more pronounced in the Middle East and Africa, Latin America, and Central and Eastern Europe.
– Professionals account for 9 million individuals within the global HNW market, while entrepreneurs account for another 2.6 million.
– Globally, only 13.9% of female HNW investors have sourced their wealth through first-generation entrepreneurship, compared to 24.7% among males. However, this is slowly changing.
Reasons to Buy
– Understand the size and service requirements of key client groups
– Develop and enhance your client targeting strategies using our proprietary data on the effectiveness of various targeting strategies across key target groups
– Minimize customer churn rates by gaining a detailed understanding about key client groups’ diverging proclivities, attitudes towards risk, and investment preferences
– Tailor your product portfolio to match demand patterns across the different segments discussed
Kotak
Axis
IDBI Bank
United Bank of India
ICICI
Bank of Baroda
HSBC
Credit Suisse
Bank of China
DBS
US Bank
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