Intergenerational Wealth Transfer: Seizing the HNW Opportunity

Powered by

All the vital news, analysis, and commentary curated by our industry experts.

This report sizes the opportunity intergenerational wealth transfer in the HNW space will provide over the coming decade. It provides detailed recommendations about how best to target and service the next generation of HNW investors. The report also provides a detailed discussion on the effectiveness of different retention strategies. It is based on proprietary data.

Over the coming 10 years, $8.6tn of global HNW wealth will change hands. This will open the door for significant industry churn, given that 28.3% of HNW clients’ children discontinue the relationship with their parents’ wealth manager upon inheriting. This means $2.4tn of HNW wealth will move from one competitor to another as inheritors look for a provider better suited to their needs. Building ties with the next generation early on is the most effective means of retention, and providers should encourage their current HNW clients to involve their children in their financial affairs. Providers also need to be aware of the next generation’s different service requirements, given their greater focus on digital channels, socially responsible investing, and social media.

Scope

– 38% of HNW investors are over 60, compared to less than 14% of the global population.

– Involving the next generation in the estate planning process is the most effective means of retention.

– Ethical investments, social media, and digital channels are more important to the next generation, with the latter perceived as a hygiene factor.

– The 40+ HNW age segment is more likely to work in traditional industries, while younger HNW investors gravitate to industries such as media, tech, and telecommunications.

Reasons to Buy

– Seize the opportunity intergenerational HNW wealth transfer provides and understand how much HNW wealth will change hands over the coming years.

– Minimize customer churn rates at the time of inheritance by gaining a detailed understanding about the effectiveness of different retention tools.

– Develop and enhance your client targeting using our proprietary data on the effectiveness of various strategies when reaching out to the next generation of HMW investors.

– Understand how service requirements differ between the current and next generation of HNW individuals.

– Understand what selected competitors are doing to successfully reach out to the next generation of HNW investors.

HSBC
Credit Suisse
BBVA
NatWest
UBS
ICBC
China Construction Bank
Bank of China
Agricultural Bank of China
ANZ
Citibank
BNP Paribas
BMO
DBS
Bank Sarasin
Personal Capital
Standard Bank
JP Morgan

Table of Contents

Table of Contents

1. EXECUTIVE SUMMARY

1.1. Over the next 10 years, $8.6tn of global HNW wealth will change hands

1.2. Key findings

1.3. Critical success factors

2. SIZING THE OPPORTUNITY

2.1. $8.6tn of global HNW wealth will change hands over the next 10 years

2.1.1. The opportunity is not spread equally across the globe

2.1.2. Aging Europe makes intergenerational wealth transfer a top priority for local wealth managers

2.1.3. HNW wealth transfer is a story about patriarchs, but this is slowly changing

2.1.4. Inheriting spouses will play a key role in intergenerational wealth transfers

3. TARGETING AND RETAINING THE NEXT GENERATION OF HNW INVESTORS

3.1. Globally, 28.3% of HNW clients’ children move their parents’ assets to a new provider when they inherit

3.1.1. North American inheritors are significantly more loyal than their global peers

3.1.2. An opportunity for one wealth manager is a threat to another – and complacency is high

3.2. Building ties with the next generation of HNW investors early on is the single most effective means of retention

3.2.1. Wealth managers should encourage their clients to involve their children in the estate planning process

3.2.2. Involving the next generation of business owners is a must in countries with an aging entrepreneurial community

3.2.3. Involving the next generation will also have a positive effect on retention rates

3.2.4. Too few wealth managers target HNW clients’ children at a young age

3.2.5. Access to an advisor younger generations can identify with is more important than brand image, but neither approach should be used in isolation

3.2.6. A greater willingness to take risks makes retention more of a challenge

3.3. Targeting the next generation of HNW investors begins with understanding their differing servicing needs

3.3.1. The next generation of HNW investors is independent, internationally active, and less involved in traditional industries

3.3.2. The next generation of HNW investors expects a multi-channel approach

3.3.3. Investing in socially responsible companies is important to the next generation

3.3.4. Social media remains underutilized as a communication and marketing tool

4. APPENDIX

4.1. Abbreviations and acronyms

4.2. Definitions

4.2.1. HNW

4.3. Supplementary data

4.4. Methodology

4.4.1. GlobalData’s 2018 Global Wealth Managers Survey

4.4.2. GlobalData WealthInsight

4.4.3. Net importance score

4.5. Secondary sources

4.6. Further reading

Table

List of Tables

Table 1: HNW age distribution, 2018

Table 2: Question: What are the two most important factors minimizing the risk of the next generation of HNW investors switching to a competitor after inheriting? (part one)

Table 3: Question: What are the two most important factors minimizing the risk of the next generation of HNW investors switching to a competitor after inheriting? (part two)

Table 4: Net importance score: Relative to your current generation of HNW investors, how important would you say the following products, services, and features are to the next generation

Figures

List of Figures

Figure 1: $4.5tn of HNW wealth will change hands in North America over the next 10 years

Figure 2: A fifth of Europe’s HNW population is above the age of 70

Figure 3: Female HNW investors tend to be younger than their male counterparts

Figure 4: UBS has declared females a key target segment, requiring more focus on legacy planning

Figure 5: North American HNW inheritors are more loyal than their global peers

Figure 6: 52% of wealth managers globally regard intergenerational wealth transfer as an opportunity

Figure 7: Involving the next generation during the estate planning process is the most effective means of retention

Figure 8: 24% of industry participants rate HNW demand for inheritance planning as very strong

Figure 9: HSBC Private Bank’s succession planning proposition is aimed at HNW clients and their families

Figure 10: 85% of business owners in the US are aged 65 or above

Figure 11: Credit Suisse targets the next generation of HNW investors early on

Figure 12: BBVA introduced the Next Generations program to educate the next generation of clients

Figure 13: Globally, a quarter of HNW clients’ children have an account with their parents’ provider in their childhood

Figure 14: UBS’s refreshed brand image is in line with the values of the next generation of HNW investors

Figure 15: Globally, the next generation of HNW investors is more willing to take risks

Figure 16: The rising number of female HNW investors calls for a more targeted servicing approach

Figure 17: BMO targets family business owners concerned about succession – a key demographic in Canada

Figure 18: Younger clients are much more open to digital financial management tools

Figure 19: A digital strategy is of greater importance to the next generation of HNW investors

Figure 20: Younger generations are notably more likely to use robo-advisors

Figure 21: Younger generations’ philanthropic endeavors are more likely to focus on children

Figure 22: Personal Capital targets wealth investors with its SRI offering

Figure 23: In the majority of countries, social media is more relevant to younger clients

Figure 24: BNP Paribas actively promotes its wealth brand on Twitter

Frequently asked questions

Intergenerational Wealth Transfer: Seizing the HNW Opportunity standard reports
Currency USD
$5,250

Can be used by individual purchaser only

$15,750

Can be shared globally by unlimited users within the purchasing corporation e.g. all employees of a single company


Undecided about purchasing this report?

Enquire Before Buying Request a Free Sample

Get in touch to find out about multi-purchase discounts

reportstore@globaldata.com
Tel +44 20 7947 2745

Every customer’s requirement is unique. With over 220,000 construction projects tracked, we can create a tailored dataset for you based on the types of projects you are looking for. Please get in touch with your specific requirements and we can send you a quote.

Sample Report

Intergenerational Wealth Transfer: Seizing the HNW Opportunity was curated by the best experts in the industry and we are confident about its unique quality. However, we want you to make the most beneficial decision for your business, so we offer free sample pages to help you:

  • Assess the relevance of the report
  • Evaluate the quality of the report
  • Justify the cost

Download your copy of the sample report and make an informed decision about whether the full report will provide you with the insights and information you need.

Below is a sample report to understand what you are buying

See what our customers are saying
testimonial-image
testimonial-image
testimonial-image
testimonial-image
testimonial-image
testimonial-image
testimonial-image

“The GlobalData platform is our go-to tool for intelligence services. GlobalData provides an easy way to access comprehensive intelligence data around multiple sectors, which essentially makes it a one-for-all intelligence platform, for tendering and approaching customers.

GlobalData is very customer orientated, with a high degree of personalised services, which benefits everyday use. The highly detailed project intelligence and forecast reports can be utilised across multiple departments and workflow scopes, from operational to strategic level, and often support strategic decisions. GlobalData Analytics and visualisation solutions has contributed positively when preparing management presentations and strategic papers.”

Business Intelligence & Marketing Manager, SAL Heavy Lift

“COVID-19 has caused significant interference to our business and the COVID-19 intelligence from GlobalData has helped us reach better decisions around strategy. These two highlights have helped enormously to understand the projections into the future concerning our business units, we also utilise the project database to source new projects for Liebherr-Werk to use as an additional source to pitch for new business.”

Market Analyst & Management, Liebherr-Werk

Your daily news has saved me a lot of time and keeps me up-to-date with what is happening in the market, I like that you almost always have a link to the source origin. We also use your market data in our Strategic Business Process to support our business decisions. By having everything in one place on the Intelligence Center it has saved me a lot of time versus looking on different sources, the alert function also helps with this.

Head of Key Accounts, Saab AB

Having used several other market research companies, I find that GlobalData manages to provide that ‘difficult-to-get’ market data that others can’t, as well as very diverse and complete consumer surveys.

Marketing Intelligence Manager, Portugal Foods

Our experience with GlobalData has been very good, from the platform itself to the people. I find that the analysts and the account team have a high level of customer focus and responsiveness and therefore I can always rely on. The platform is more holistic than other providers. It is convenient and almost like a one stop shop. The pricing suite is highly competitive and value for our organisation.

I like reports that inform new segments such as the analysis on generation Z, millennials, the impact of COVID 19 to our banking customers and their new channel habits. Secondly the specialist insight on affluent sector significantly increases our understanding about this group of customers. The combination of those give us depth and breadth of the evolving market.

I’m in the business of answering and helping people make decisions so with the intelligence center I can do that, effectively and efficiently. I can share quickly key insights that answer and satisfy our country stakeholders by giving them many quality studies and primary research about competitive landscape beyond the outlook of our bank. It helps me be seen as an advisory partner and that makes a big difference. A big benefit of our subscription is that no one holds the whole data and because it allows so many people, so many different parts of our organisation have access, it enables all teams to have the same level of knowledge and decision support.

Head of Customer Insight and Research, Standard Chartered

“I know that I can always rely on Globaldata’s work when I’m searching for the right consumer and market insights. I use Globaldata insights to understand the changing market & consumer landscape and help create better taste & wellbeing solutions for our customers in food, beverage and healthcare industries.

Globaldata has the right data and the reports are of very high quality compared to your competitors. Globaldata not only has overall market sizes & consumer insights on food & beverages but also provides insights at the ingredient & flavour level. That is key for B2B companies like Givaudan. This way we understand our customers’ business and also gain insight to our unique industry”

Head of Consumer Sensory Insights, Givaudan

GlobalData provides a great range of information and reports on various sectors that is highly relevant, timely, easy to access and utilise.  The reports and data dashboards help engagement with clients; they provide valuable industry and market insights that can enrich client conversations and can help in the shaping of value propositions. Moreover, using GlobalData products has helped increase my knowledge of the finance sector, the players within it, and the general threats and opportunities.

I find the consumer surveys that are carried out to be extremely beneficial and not something I have seen anywhere else. They provided an insightful view of why and which consumers take (or don’t) particular financial products. This can help shape conversations with clients to ensure they make the right strategic decisions for their business.

One of the challenges I have found is that data in the payments space is often piecemeal. With GD all of the data I need is in one place, but it also comes with additional market reports that provide useful extra context and information. Having the ability to set-up alerts on relevant movements in the industry, be it competitors or customers, and have them emailed directly to me, ensures I get early sight of industry activity and don’t have to search for news.

Senior Account Manager, TSYS
Financial Services
New
France Life Insurance Market Size and Trends by Line of…
$3,999 | June 2024
Financial Services
New
Wealth Management Trends and Themes in 2024
$5,250 | May 2024
Financial Services
New
Peru Insurance Industry - Key Trends and Opportunities to 2028
$1,450 | May 2024
Go even deeper with GlobalData Intelligence Center

Every Company Report we produce is powered by the GlobalData Intelligence Center.

Subscribing to our intelligence platform means you can monitor developments at Intergenerational Wealth Transfer: Seizing the HNW Opportunity in real time.

  • Access a live Intergenerational Wealth Transfer: Seizing the HNW Opportunity dashboard for 12 months, with up-to-the-minute insights.
  • Fuel your decision making with real-time deal coverage and media activity.
  • Turn insights on financials, deals, products and pipelines into powerful agents of commercial advantage.