The recently published ‘2019 EY Global Wealth Management Research’ report has found that investors today need more holistic financial advice.
According to the report, currently most wealth managers tend to focus on goal planning. However, client needs are more complex. Along with fulfilling their long-term aspirations, clients want to be financially literate, need advice on day-to-day cash flow management such as managing household expenses and budgeting and tax planning.
In fact, among the investors surveyed, 57% are planning to seek advice from wealth managers on day-to-day financial management over the next three years compared to 35% currently. Similarly, investors who approach wealth managers for financial education would increase from 34% to 56% over the next three years.
According to the report, discussions on budgeting and savings were critical for the overall financial well-being of the client. Despite various online tools, which help clients save, many investors still struggle to understand how much to save and when to save. Conversations on budgeting and savings offer opportunity to the wealth manager to advice the client on day-to-day financial management Moreover, it can be a conversation starter to address and service other financial needs of the clients.
To summarise, client needs are evolving; wealth managers aspiring to be their client’s money doctors, need to look beyond goals and service the various needs of their clients.
Over 2,000 investors across 26 countries participated in the EY's survey.
