Wealth managers deal with financial planning, portfolio securities, and an array of financial services. Typical clients include small business owners and high-net-worth individuals. Many traditional management firms serve as product providers, offering clients a buffet of securities and financial services. Transformative wealth management in Singapore focuses on offering financial solutions to customers. Managers assess customer needs, set major priorities, and provide a plan. Effective companies enact transformative change in several key areas.
Today’s emerging markets are growing faster than established markets. The drive to secure a new market target and evolve the opportunity into a revenue-generating cash cow has given way to a focus on the evolution itself, the ability to identify fast-moving market windows, and a strategy to garner faster returns.
Agility for wealth management in Singapore is key. For instance, a slow market response to changing demographics has created a provider gap for female consumers. Experts estimate that women comprise as much as a third of the client base, but are served by only 8% of the provider firms.
Next Generation Clients
Many investors find that the family portfolios focus on the financial needs of the patriarch and are not necessarily suitable for the spouses or children. The risk level of portfolio securities, the time sensitive component of investments, and the charity designations of tax shelters are important topics not always addressed by firms for wealth management in Singapore.
Full-Spectrum Financial Services
Highly effective wealth management solutions incorporate much more than simple stock recommendations. They should include:
- Estate planning
- Risk management
- Tax advice
- Philanthropic strategies
Modern investment has become a commodity service. The advent of ETFs, index funds, and automated advisors has removed the “secret black box” perception of investment. Potential clients for wealth management in Singapore can expect much more as their providers scramble to differentiate their services. In many cases, one of the best strategies for a comprehensive management plan is to address client needs through a team rather than an individual. In this way, management firms can replace single points of contacts with a focused team, where members have expertise in all of the facets of a client solution, including:
- Business development
- People management
- Financial analyst
The needs set of any particular client are often best addressed by a group of focused experts rather than a single jack-of-all-trades.
Cost of Regulation
As strategies for wealth management deal with the taxation landscape, they must also address an equally significant drain on client resources: the increasing cost of regulation. Global respondents estimate that wealth reduction will increase from today’s portion of 5% to over 7% in the next two years. As with taxation issues, the challenge of compliance is the complexity. Wealth managers must keep current with ever-changing rules of compliance to be effective.
Time Component of Risk
Some wealth managers entice clients by focusing on returns without discussing risk properly. In this way, a high-risk wealth management solution which may be most appropriate for a younger client will not be a good solution for a customer nearing the end of his or her revenue-generating cycle.
By addressing all of these issues, wealth management in Singapore become a more valuable service to clients and separates itself from the offerings of simple provider firms.