So why does global wealth intelligence matter and how it relates to your clients?
With the advent of big data and analytics wealth intelligence services are critical to look at wealth creation and analyse different trends in wealth creation and wealth individuals.
New wealth management (WM) firms and new business models as well as renewed commitment by incumbent WM firms will drive higher intensity of competition for the same clients and the same assets. Moreover the global increasing regulatory burdens and rising costs of risks pose new challenges to WM firms and their parent companies new challenges in how to operate.
Big data and advanced analytics are disrupting and transforming the WM industry, with new ways to engage with new clients, manage client relationships and special manage risks and growing stats and trends. Two demographic trends are critical to look at the industry:
1. Advisors are aging and leaving the industry faster than firms are replacing them; (
2. Wealth is about to change hands, upsetting established client/advisor relationships Investors value holistic advice on how to achieve multiple, often conflicting goals through a range of investment and funding strategies
The market trends are changing and more and more companies are looking for ways to target those with the highest net worth also known as the billionaires. Of course, the targeted market wants to be treated and communicated with the same luxury they are used to. Since those with ultra high net worth prefer purchasing luxurious items such as branded apparel, designer goods, leather products, jewelry, etc – the comforts of digital shopping does not fit their lifestyle.
This is where bespoke marketing techniques come in. Bespoke marketing techniques are tailored according to the client’s requirements. It engages the targeted consumers in an effective and holistic way. According to surveys, the traditional modes of digital marketing don’t work for the ultra-wealthy. While social media campaigns are still the best way to target individual prospects, those with ultra high net-worth are more prone to buying luxury items through traditional approaches such as referrals, events, and partnerships.
Wealth Intelligence! How Many Billionaires there are in the world?
According to statistics, the number of billionaires in the world has doubled since 2009. A report in Oxfam showed that around 62 billionaires in the world own as much wealth as poorer half of the world’s population.
Bill Gates remains the richest in the world for the past three years holding a net worth of $75 billion. Amancio Artego of Zara has a net worth of $67 billion followed by Warren Buffet who owns approximately $60.8 in net worth. Mark Zuckerberg, the founder CEO of the social networking platform Facebook is worth $47.7 billion and one of the youngest on the Forbes list. Data also shows that the United States of America has a total of 536 billionaires – the highest in the world. They are followed by china, Germany, and India who have 213,103, and 100 billionaires respectively.
In a recent study conducted by the global wealth intelligence, the individuals with the highest net worth make up 0.004% of the population which means that they possess approximately 13% of the wealth globally. According to statistics in a report by WealthX, most billionaires have one spouse and two children which represent 845,000 individuals worldwide.
One company to watch working in wealth intelligence and wealth management intelligence research is Wealth X. Their work is particular sharp in the way they have been analysing wealth and new ways of analysing and looking at the sector such as this video highlights:
Wealth-X And UBS Billionaire Census 2014 from Wealth-X on Vimeo.
Summary: Wealth Intelligence – Wealth Management fast growing industry in profound growth and transformation:
Wealth Management (WM) is one fast growing and in profund transformation. It is one of the most attractive sectors within financial services as fintech starts shifting the way it has been run in the last decades, or should we say centuries.
This is happening for 2 reasons as Deloitte research concludes in this insightful study: 10 Disruptive trends in wealth management :
1. WM businesses tend to have greater growth prospects, lower capital requirements, and a higher return on equity (ROE) than most other retail banking businesses, hence their appeal to diversified financial services firms at a time when capital is viewed as more expensive, growth is hard to come by, and equity returns for the banking industry are close to the cost of capital.
2. WM offerings are essential to attracting and retaining profitable retail customers. For instance, based on our experience, mass affluent customers can typically represent 80% or more of the net income generated by retail banks and they often regard their relationship with a provider of WM services as their most important financial relationship. As result, many diversified financial services firms are doubling down on their WM businesses.A young billionaire entrepreneur will not be attracted to the same products as a billionaire who is 50 years old – regardless of having the same bank balance. The future of wealth will be based in wealth intelligence software data driven software and services.
Marketers and wealth management professionals and players should work in wealth intelligence to observe the consumers and suggest products based on their interests and demographics. Wealth management / wealth intelligence software includes: Wealth Matching, Wealth Attributes and Wealth Snapshot/Detailed Reports for your charity database software databases. Wealth intelligence is on its inception but will control the entire industry. Be ready!
Dinis Guarda is an author, speaker, serial entrepreneur, advisor and experienced CEO.
He creates and helps build ventures focused on global growth, 360 digital strategies, sustainable innovation, Blockchain, Fintech, AI and new emerging business models such as ICOs / tokenomics.
Dinis is the founder/CEO of ztudium that manages blocksdna / lifesdna. These products and platforms offer multiple AI P2P, fintech, blockchain, search engine and PaaS solutions in consumer wellness healthcare and life style with a global team of experts and universities.
He is the founder of coinsdna a new swiss regulated, Swiss based, institutional grade token and cryptocurrencies blockchain exchange. He is founder of DragonBloc a blockchain, AI, Fintech fund and co-founder of Freedomee project.
Dinis has created various companies namely Ztudium, a tech, digital and AI blockchain startup that builds cutting edge software, big data insights, publishes intelligenthq.com, hedgethink.com, tokensdna.com and tradersdna.com among others.
Dinis is the author of various books. His upcoming books “How Businesses and Governments can Prosper with Fintech, Blockchain and AI?”, also the bigger case study and book (400 pages) “Blockchain, AI and Crypto Economics – The Next Tsunami?” last the “Tokenomics and ICOs – How to be good at the new digital world of finance / Crypto” will be launched in 2018.
Some of the companies Dinis created or has been involved have reached over 1 USD billions in valuation. Dinis has advised and was responsible for some top financial organisations, 100 cryptocurrencies worldwide and Fortune 500 companies.
Dinis is involved as a strategist, board member and advisor with the payments, lifestyle, blockchain reward community app Glance technologies, for whom he built the blockchain messaging / payment / loyalty software Blockimpact, the seminal Hyperloop Transportations project, Kora, and blockchain cybersecurity Privus.
He is listed in various global fintech, blockchain, AI, social media industry top lists as an influencer in position top 10/20 within 100 rankings: such as Top People In Blockchain | Cointelegraph https://top.cointelegraph.com/ and https://cryptoweekly.co/100/ .
He has been a lecturer at Copenhagen Business School, Groupe INSEEC/Monaco University and other leading world universities.
He is a shareholder of the fintech social money transfer app Moneymailme and math edutech gamification children’s app Gozoa.
Between 2014 and 2015 he was involved in creating a fabbanking.com a digital bank between Asia and Africa as Chief Commercial Officer and Marketing Officer responsible for all legal, tech and business development. Between 2009 and 2010 he was the founder of one of the world first fintech, social trading platforms tradingfloor.com for Saxo Bank. In 2011 he created the B2B platforms socialmediacouncil.org and openbusinesscouncil.org with Jamie Burke.