About half of the clients surveyed (49%) see a conflict of interest in advisory services as the wealth managers receive kickbacks for a variety of products. Another threat to the wealth managers is declining loyalty affecting high net worth and the younger bank clients in particular. Among the clients with investable assets of over € 500,000, 47% are considering a change and for those clients up to 35 years old, this proportion reaches as high as 57%. "Although most wealth managers got to grips with the financial crisis, a long-term erosion of client loyalty is evident," says Steffen Binder, Director of Research MyPrivateBanking on the challenges for the wealth managers. "In particular, the key target group of young, affluent clients is now much more willing to switch banks if they feel that a competitor will give them a better deal."
In the assessment of the individual banks and groups of banks the small and medium sized private banks came out as the winners. The clients of these banks awarded an average score of 4.7 out of a maximum of 5 points. Runner up is direct bank ING-Diba which follows with 4.6 points. The large banking groups Deutsche Bank, Commerzbank/
"These results show that banks, which are uniquely positioned in the market have the most satisfied clients," said Christian Nolterieke, managing director of MyPrivateBanking. "The medium and small Private Banks differentiate themselves through the competence of their advisers and the clear focus on wealth management. ING-Diba has the clear positioning as a winner on costs. Lack of any differentiation, by contrast, leads to low client loyalty and satisfaction."
MyPrivateBanking Research recommends banks and wealth managers to undertake a thorough review of their strategic positioning. Especially for the important client groups of younger affluent and high net worth individuals targeted offerings should be developed, so that they remain loyal to their wealth manager in the future. Conversely, the declining client loyalty offers also an opportunity for a pro-active client acquisition strategy by those banks and wealth managers that react fastest to the new challenges.
About the Study: The “Client Monitor Wealth Management Germany” of MyPrivateBanking Research provides a comprehensive analysis of client needs and client satisfaction for the German wealth management market and is published annually. For the study 300 high net worth individuals in Germany with assets of more than € 250,000 and / or a gross income of more than €150,000 were surveyed. Their needs, attitudes and levels of client satisfaction are analyzed comprehensively and in depth. For the eight largest banks and groups of banks client satisfaction profiles, propensity to switch providers and other essential data are presented in detail. More information:
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