“Immediate needs are driving the future wealthy. Investment brands need to be relevant to these needs to get in with them now. Or, take a more aspirational angle to appeal at wealth events.”
In wealth and investment management, brand managers cannot afford to overlook the future affluent. These are the high-earning individuals in the UK with substantial potential for amassing wealth. They are the crème de la crème of entrepreneurs, C-suite leaders, and accomplished professionals who are actively growing their enterprises. It is crucial to recognise that they serve not only as potential clients, but also as valuable referrers.
To succeed in this competitive landscape, wealth managers must cultivate brand awareness and establish a solid reputation long before significant wealth events occur. By doing so, they can smooth the process of introductions and, ideally, instil a sense of aspiration in this discerning group.
To provide wealth and investment managers with unparalleled insight into this critical demographic, we proudly introduced BrandVue Wealth in July 2023. This innovative platform enables us to meticulously track and analyse the strategies employed by 60 prominent wealth management and investment brands that cater to the affluent. Through this comprehensive tracking, we offer our clients high-quality data regarding their brand positioning in relation to competitors, as well as invaluable insights on how to make significant strides in identifying and targeting these individuals.
When it comes to the factors that drive the choices of this esteemed audience, investment expertise and a well-established presence are imperative. Intriguingly, brand reputation holds equal importance to fees and performance history, highlighting its significance as the equal third most crucial factor.
Key drivers of choice
Currently, most individuals belonging to this demographic prefer a self-directed approach to wealth management (31%), followed by discretionary management (26%) and ongoing advisory services (20%). And notably, 52% of these individuals comfortably embrace higher risks in pursuit of greater returns on their investments.
When it comes to investment products, personal pensions (44%), fixed-term investments (44%), and Stocks & Shares ISAs (44%) are the most widely held. And 21% have also ventured into the world of cryptocurrencies, showcasing their innovative and progressive mindset.
However, it is important to remain mindful of the potential concerns currently facing the future wealthy that may arise in the future, particularly in the context of debt and increasing borrowing interest rates. A considerable portion of this audience currently holds personal loans (33%) and buy-to-let mortgages (20%). Addressing their financial needs holistically requires a comprehensive approach that may currently extend beyond traditional investment management. As such, two of their primary needs for advice centre around income tax (43%), and cash flow planning (34%).
Brands will encounter a challenge in attracting those when their wealth events occur, as 3 in 5 already retain the services of a financial advisor on an ongoing basis. Wealth management and investment brands must therefore overcome this by justifying why they are the superior choice. It is imperative to articulate the unique value proposition that sets them apart from the competition and warrants their position as the preferred advisor during these pivotal moments.
By leveraging BrandVue Wealth, wealth managers and investment brands can equip themselves with a comprehensive understanding of the future wealthy. Armed with this invaluable knowledge and insights, they can confidently shape their brand strategies, foster lasting relationships, and secure a coveted position within the dynamic world of investment management.
Data taken from BrandVue Wealth Q3 2023.
About BrandVue Wealth
A subscription to BrandVue Wealth will equip you with highly reliable data and in-depth insights delivered through a highly intuitive and user-friendly dashboard as well as bespoke reports to share with your team.
What you will get:
- Market intelligence – an ongoing competitive view of the sector, identifying key trends, opportunities and threats.
- Audience understanding – improve your knowledge of your wealth customers with top line demographics, media consumption, content type, social media usage, hobbies and interests.
- Improve brand performance – plot where you and your competitors are in the market. Monitor and measure brand perceptions, awareness, familiarity, advantage and brand affinity.
- Marketing performance drivers – track saliency measure in line with activity. Discover if your brand is being heard and seen and find out how perceptions are shifting.
- Improve customer acquisition – identify opportunities to drive efficiency in your customer journey through adoption funnel analysis, brand mapping and spontaneous awareness positioning.
- Maximise customer retention – discover how often your customers are returning to you and how to improve repeat sales. Analyse customer experience, customer satisfaction, net promoter score and lapsed customers.