Industry Disruption Expected from Younger HNWIs


Despite robust wealth growth in the U.S., relatively lower levels of trust, confidence, and satisfaction in wealth managers and firms by younger HNWIs threaten to undermine traditional relationships. Younger HNWIs had much lower trust and confidence in both their wealth managers (64.2% versus 75.7% for older HNWIs) and firms (63.6% versus 76.3% for older HNWIs), pointing to a fracture in the traditional wealth manager-HNWI relationship dynamic that could widen further as younger HNWIs gain in prominence

These attitudes, combined with the under-40 HNWI perception that their wealth needs are less well-understood, are putting wealth managers and firms at risk, as under-40 HNWIs show a greater propensity to break ties with their wealth managers and firms in the event of their wealth needs not being fulfilled. Nearly 85% of under 40 HNWIs are more likely to leave their wealth manager or firm if their needs are not being met vs. 76.6 for HNWIs above 40 (nearly 10 pp difference). This age group possesses high demand for digital service delivery indicating a need for a hybrid service model. Most (85.1%) are already conducting most or all of their wealth management interactions through digital channels which is nearly twice the amount (43.2%) of HNWIs above 40.

The habits and behaviors of under-30 HNWIs are even more pronounced than those of under-40 HNWIs. Lower levels of trust, loyalty, and satisfaction, combined with greater demands for digitalization and credit availability put under-30 HNWIs in a separate category. With under-30 HNWIs playing a lead role in driving client expectations, firms and wealth managers face an urgent need to develop strategies to adapt.

Key Differences of Under 30 HNWIs with Older (Over 60) HNWIs

Despite robust wealth growth in the U.S., relatively lower levels of trust, confidence, and satisfaction in wealth managers and firms by younger HNWIs threaten to undermine traditional relationships.

Source: Capgemini and RBC Wealth Management Global HNW Insights Survey, 2015