Where do high net worth investors find investment ideas? Well, online of course!
I caught up with Sebastian Dovey of the Scorpio Partnership at the Asia Fund Forum in Hong Kong a few weeks ago.
Both of us are very much on the same mission: to help our industry understand that the way to interact with investors is rapidly changing as we move into the connection economy.
I love to attend Sebastian's presentations because I always learn so much. He has a way of presenting that make his findings become very consumable.
There is no way you can think about the future of the investment industry without considering Asia. Not only is it the place where most of the investors of the future will live, it is also where most of the world's future wealth will be created.
Sebastian gave us a presentation about creating a strategy around Asia's wealthy 'Generation Y' with an aim to integrate technology, relationships and finance to cater to the financial customer of the future.
The findings that were put into perspective come from more than 3.7 million data points supplied by more that 14,500 survey respondents.
Here are some of the main takeaways.
Generation Y? More like Generation Y-not now? Thinking about Gen-Y investors as a sub-set of 'normal' investors is a mistake.
Social Media is now part of the investor's kit. It is already seen as a similar source of influence as financial institutions and outranks traditional 'trust agents' such as the traditional media, accountants, lawyer and even family offices.
Financial Apps are on the rise. The uptake of apps for finance in Asia is TWICE that of America or Europe. In addition, there is a clear consensus that most interactions will happen on smart phones and tablets in the near future.
Wealthier investors spend more time online on finance. The wealthier an investor is the more time they spend online researching investment opportunities.
The digital gateway is the only way. Asian High Net Worth (HNW) investors see digital gateways as an essential part of the wealth advice model. Wealth managers are adapting but perhaps not quick enough.
Aligning the 'wow' factors is now the challenge. Wealth advisors over-estimate the importance referrals from friends and family and the value of advice. Advisors under-estimate the desire for best price, convenience, and branch networks.
Wealth management infrastructure needs an upgrade. This is not very surprising. Across the globe, only half of the investors think that wealth mangers need to improve their digital infrastructures.
Sebastian has given me permission to share his presentation with you. Click here to view it on SlideShare