Differentiating Your High Net Worth Service Model in a Democratized Wealth Management Landscape

Shifting demographics among both financial professionals and investors, and advancements in technology and product platforms are transforming the wealth management landscape. In our vibrant industry, the only constant is that there will always be something driving change. As financial professionals and their firms continually work to adapt in the current environment while also positioning themselves for future success, is the key to thriving in an evolving industry simply getting back to the basic strategies that have served high-net-worth (HNW) clients for decades? 

Yes, there are lower barriers to entry to many of the products and services that were previously the sole domain of the wealthy, from a stronger middle-market appetite for alternatives to growing expectations among retail clients for the same holistic support and service previously reserved for multi-family offices. Financial professionals cannot be faulted for seeking out fresh ways to create and deliver exclusive client experiences to attract and retain their most lucrative client segments. 

In wealth management, we’ve made “elite” services more accessible to meet the demands of the broader mass affluent client base. However, by addressing the needs of one client segment, we’ve created a void in another, leaving the question of how to deliver the exclusivity HNW clients want, while also fulfilling their fundamental wealth and asset management needs. 

To a large degree, products alone will no longer satisfy the demand for elite status this group desires. Successfully serving them will require integrating products with services that are more precisely attuned to what the HNW and ultra-high-net-worth (UHNW) segments want to achieve both in the near-term and for future generations. 

More Cowbell 

Personalization at scale looks to be a primary benefit of AI-driven productivity enhancements. Consequently, the hyper-personalization HNW clients demand requires more: more resources, more outside-the-box creativity, and more tailored solutions that target the specific needs of individual clients and their families. Much of what used to be a value-add is now the new standard. Attracting and retaining HNW clients is both an art and a science that combines soft solutions with platforms and products to create an unparalleled service experience. 

For example, at Cambridge, our Private Client Solutions offering includes outsourced, personal CFO services — a concierge-level solution that’s unique in our space. Through a partnership with Hero CFO, we provide financial professionals’ HNW clients with personal CFO services to oversee their family’s financial management, including customized support such as household bookkeeping, electronic bill payments, and budget preparation. After all, if you are a family that has $50 million, $100 million or more in assets, why wouldn’t you manage your family the same way you would your business? These clients need to know where the money is going, and how their family money is managed. 

They also need to help prepare the next generation for when those assets eventually change hands. Effectively working with multiple generations within HNW and UHNW families is central to developing an enduring client relationship. The ability to respect, incorporate, and build upon different perspectives, expectations, needs, and values is crucial to successfully managing these households. 

One Size Fits None 

There is no one answer to attracting and retaining HNW and UHNW clients across generations. Rather, it requires a customized, fully-integrated combination of products and services that reinforce the next-level exclusivity and tailoring that these clients desire. As personalization becomes more ubiquitous, financial professionals will need to hone in on catering to the wants and needs of HNW individuals to differentiate their services from the masses. 

Going back to basics and consistently delivering on fundamentals is the foundation of a value-add relationship. Access to specialized products and services that demonstrate a deep understanding of a client’s goals, as well as an end-to-end service model — one where, as their trusted financial professional, you are the first person they think to call when a life event unfolds — is the type of relationship today’s HNW client expects, and the key to maintaining these relationships for years to come.