William Ferrand
LSEG’s latest sponsored research looks at the changes impacting the wealth industry today and unpack the views of respondents across the globe.
- In late 2023, LSEG sponsored research to better understand changing preferences and emerging trends within the wealth industry.
- We asked investors across the globe about how changes in the wealth industry are impacting them.
- This insight looks specifically at some key attitudes and opinions of respondents in EMEA.
Accelerating digitalisation continues to re-shape the wealth industry, with a range of implications for all stakeholders, from wealth firms and advisors to self-directed investors and those offering digital investment products and services.
To better understand the changes that are unfolding, LSEG sponsored detailed research across the wealth industry. Conducted by ThoughtLab, the research included two global surveys, one of 2,000 investors across countries, wealth levels, ages, lifestyles, occupations, genders and other characteristics, and the second of senior executives at 250 investment providers.
The research was broad and asked respondents to answer questions relating to how the role of financial advice is evolving; the impact of experience on investor behaviour; attitudes towards AI in investment; and gaps in the sustainable investment space.
Alongside several global insights and conclusions, we have also distilled some key regional insights, and in this blog we unpack some key take-aways for EMEA.
Key take-aways for EMEA
Our research reveals three key insights relating to EMEA:
1. There appears to be a stronger desire within the region for a single, consolidated view across investments
When asked about the greatest value advisors can offer, respondents in EMEA are significantly more likely than those in other regions to select ‘coordinate investment activities with other firms (legal advisors, insurance brokers, etc.)’. This is the view of over a quarter (27%) of respondents within the region, compared to 20% in APAC and just 19% in North America.
EMEA respondents are also more likely than respondents in APAC and North America to agree that they want their providers to offer them a holistic financial picture of all assets and liabilities across all the financial organisations they work with, with 71% expressing this desire.
Underscoring this point, EMEA respondents are more likely than those in other regions to say they would like their investment provider to offer a ‘consolidated view of accounts across providers’ in the future, with over half (54%) expressing this view.
2. Loyalty may diminish if convenience is at stake
When asked if they had switched their investment provider in the past 3 years, respondents in EMEA were less likely to have done so than those in other regions. Just 31% said they had switched during this time, but interestingly, over half (52%) are considering switching in the next 3 years.
Only 7% of those using a financial advisor in EMEA said it was ‘very likely’ they would follow them to another firm, suggesting that loyalty to advisors or providers may be more attributable to convenience and ease than to a strong desire to stay with a particular advisor.
% of investors, categorised by region, who would follow their current advisory team to another firm
3. There is a distinct thirst for knowledge in the region
Respondents in EMEA are much more likely than those in other regions to say that financial education resources and in-depth research are important when selecting an investment provider. Just over a third (34%) of respondents within the region felt this to be important, relative to 29% in APAC and 26% in North America.
In addition, a substantial 44% said that lack of knowledge about SI prevents them from investing more in line with sustainability considerations.
What does this mean for industry participants?
Our findings show that respondents in EMEA value ease and convenience, placing value on, for example, being offered a consolidated view of investments or being able to access a holistic financial picture of all their assets and liabilities.
Whilst they show loyalty to their existing providers, it would appear that this may be more as a result of the value they place on such ease and convenience, rather than on individual loyalty to any particular advisor.
This presents an opportunity for advisors to deliver the convenience their EMEA clients desire. By leveraging leading technology, advisors can offer clients greater speed and efficiency and can offer streamlined oversight of investments. Similarly, platforms catering to self-directed investors can ensure that investors are offered intuitive solutions that offer simplicity and ease of use.
EMEA respondents also value knowledge, with many feeling that they are lacking know-how in some important areas. Once again, this is a clear opportunity for advisors and those offering digital services to self-directed investors in EMEA to deliver value in the form of trusted data, tools and insights that can quench this thirst for knowledge.
Areas of greatest advisory value for investors, categorised by use of a financial advisor
About the research
The research covered four regions – Asia Pacific, Europe, the Middle East, and North America. By wealth level, the largest shares comprised mass affluent (25%) and high net worth (25%), followed by very high net worth (18%). By age, the largest share consisted of Gen X (31%), followed by Baby Boomers (30%).
The study also included a benchmarking survey of senior executives from a cross section of 250 wealth management firms, from independent wealth advisors and private banks to wealth management divisions within regional and international banks.
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