Straight advice for Asia’s LGBT Community is the strapline and LGBT Wealth is the first wealth management outfit to focus on the LGBT (lesbian, gay, bisexual and transgender community) in Asia.
Profiled last week in the FT, Paul Thompson, LGBT Captial’s founder, said that “it’s very clear that the LGBT market needs advice from people who understand their specific needs”.
The FT estimated that the LGBT population in Asia could number more than 200 million people who jointly command spending power of US$800bn. Worldwide the spending power rockets to $3tn.
So why, asks the FT, are financial providers dragging their heels when it comes to targeting this segment?
The article goes on to share some interesting thoughts on why wealth managers are slow to target LGBT clients – read the article in full here – but actually, this is just one example of an industry wide reticence when it comes to putting client insight, and particularly HNW insight, to good use.
The Scorpio Partnership coined the phrase “codifying the client experience” which is starting to gain traction, most recently in a recent report from Wealth Briefing on which we collaborated, The New Normal: Codifying Superior Client Experience in Wealth Management.
It’s a catchy phrase, but it refers to a much bigger and more urgent need to change the way that information – and that could be client behavior, HNW insight discovered through quantitative and qualitative research or ‘big data’ – is used to inform and direct service offerings throughout the wealth management sector.
Whilst some firms already segment clients and research their detailed needs with a view to UHNW engagement, too many don’t. Others carry out HNW research, but then tuck it away in a drawer once the PR and marketing teams have done their bit.
After all, the behavioural profile of HNW clients influences every part of their relationship from the style of interaction they crave to the products that suit them.
Cath Tillotson, managing partner here at the Scorpio Partnership, pointed out that different things in the customer journey are important to different types of UHNW people.
Understanding those differences – and understanding how to explore them methodically in a way that will turn insight into actionable strategies that can attract and retain investor assets – is not easy.
We’ve been tracking client sentiment for 15 years now and to a large extent, it’s that time series effect, our ability to really get under the skin of what’s changing in wealth management, that lets us tap quickly into client behavior.
Of course, some still think it’s a cost too far in these times of austerity but actually, insight drives business and business drives profit.
As Cath Tillotson sums up, “if you think about what segmentation actually means, segmentation is to make sure that you are taking the right products and services to the right customer more often.”
If you get that right, the clients – and assets – will follow.
We’ll be sharing more about the projects we’ve worked on whilst gathering insight and research or shaping strategy and marketing plans for the global wealth industry as this blog evolves but if you’d like a sneak preview, head straight to our financial consultancy work where you’ll find brief overviews of the type of projects we like to get our teeth into.