Where will
wealth takeclients next?
2021 EY Global Wealth Research ReportContents
Setting the scene

04

1 Service12

2 Engagement

22

3 Purpose

32

Conclusion

42

Methodology

43

Key contacts

44Welcome
Uncertain times make us question what we value. Wealth managers mustuse deeper, richer insights to provide clients with more holistic, tailoredand meaningful experiences.
Wealth managers faced an unsettling combination of practical disruption and enforced reflection
as a result of the COVID-19 pandemic — client behaviors are changing rapidly,
as they seek to financially de-clutter their lives and refocus on their most important priorities.
Our research confirms that the pandemic has had far-reaching effects
on wealth clients’ beliefs and world views. These go far beyond investors’ ever-growing
appreciation for digital channels. Clients are becoming more risk averse, are increasingly
focused on achieving personal goals aligned to their purpose, and want to enhance their financial
protection, diversification and security.
As they contemplate their providers, clients value a range of tangible and intangible factors thatspan three key dimensions of the wealth experience: the expectation of core services they receive,
how they engage with those services, and their ability to achieve purpose with their wealth.
To explore these themes, we surveyed 2,500 wealth management clients in 21 geographies. This
report sets out our key findings, which include:• Service: Clients expect a greater range of tailored services than many firms can provide alone.
Nearly half also want to consolidate all their financial activities in one place. Firms that can use
partnering to integrate client services could unlock huge gains in wallet share.
• Engagement: The growing use of digital tools is changing how clients view their providers. Many
expect their wealth relationships to become less personal (e.g., less face-to-face) in the future.
But clients are also far more open to sharing their data than wealth firms realize, especiallyamong younger generations, in exchange for tailored experiences.
• Purpose: Most clients now have sustainability goals, but providers’ understanding is failing tokeep up. A broader understanding of purpose will help firms to implement clients’ beliefs, meettheir growing expectations and build lasting relationships.
Complementing a strategic focus on service and engagement with a clear emphasis on purpose
holds the key to elevating client experiences and demonstrating the long-term value ofwealth management.
We invite you to read our key findings in this report, and visit ey.com/wealthresearch
to learn more.
AmericasAsia-Pacific

EMEIA

GlobalNalika C. Nanayakkara

Mark Wightman

Alex Birkin

Mike Lee

EY Americas Wealth &Asset Management
Consulting Leader

EY Asia-Pacific Wealth &Asset Management
Consulting Leader and
ASEAN Wealth & AssetManagement Leader

EY Global Wealth & AssetManagement Consulting
Leader, EY EMEIA Wealth& Asset Management
Industry Leader

EY Global Wealth &Asset Management
Leader2021 EY Global Wealth Research Report3Setting
the scene
The wealth management industry neverstands still, but the period since our lastreport has been exceptionally disrupted
by COVID-19 and its knock-on effects.
We therefore open this report with an
overview of seven vital client trends
identified by our research. These provide
essential background for the report’s key
findings and allow us to put specific data
points into the broader context of clients’priorities for a post-pandemic world.

4

2021 EY Global Wealth Management Research ReportClients are now
more focused on asset
preservation and security
The 2019 EY Global Wealth Research report showedthat clients were setting a variety of financial goals.
Depending on their circumstances, these ranged fromseeking greater tax efficiency to legacy planning andincome protection. Following a difficult year in 2020,

clients have now narrowed their financial goals. They are
increasingly focused on meeting their personal goals,
diversifying their investments, protecting their wealthand maintaining financial security.

The main financial goals
that clients discuss,manage and delegate
to their wealth manager
32%

Manage my budget/minimize debt

19%
44%

Reduce taxes, including inheritance taxes

23%

Ensure safe transition of wealthto my children/family/charity

23%

36%

28%

Save to meet goals(retirement, education, home, etc.)

38%
37%

Diversify total wealth acrossdifferent assest classes

42%
41%

Protect wealth(from investment loss, inflation, etc.)

49%
43%

Ensure adequate income/financial security

51%
0%

10%

20%

30%

40%

50%

60%

Percentage of clients2019 survey result

2021 EY Global Wealth Research Report

2021 EY Global Wealth Research Report5﻿

Setting the scene

A lack of investment knowledge
is holding clients back from fully
achieving their financial goals
contemplate fewer distractions and the drawdownof their wealth, almost three-quarters of investors
feel confident in achieving their financial goals. In
contrast, confidence is typically weaker when clientsget married or have children, reflecting their increasing
responsibilities and growing need to accumulate wealth.

Two-thirds of wealth clients have met their financial
goals or are well-prepared to do so, but younger andless knowledgeable clients feel notably less confident
than their older, more knowledgeable counterparts.
The generational divide is apparent in investors’
experiences of major life events. At retirement, as they

The degree to whichclients are prepared tomeet their financial goals
Viewed by client segment
Global 2%

32%

Viewed by life stage
65%
76%

North America 2% 23%
Asia-Pacific 3%
39%33%Europe 2%
55%
Middle East 0%
44%
Latin America 6%

58%
65%
45%
51%

Millennial 4%
39%
37%
Gen X 3%
Boomer 0% 23%

57%
60%
76%

43%
Mass affluent 4%
High net worth 2% 31%
Very-high net worth 1% 26%
Ultra-high net worth 0%17%

53%
68%
73%
83%

Female 3%
Male 2%High knowledge 1% 19%
42%
Average knowledge 2%
53%
Low knowledge 8%
0%
25%

80%

50%

100%

Percentage of clients

I am not at all prepared
to meet my financial goals

62021 EY Global Wealth Research Report

Retiring

3%

35%

62%

Buying a house

3%

36%

61%

Inheriting money

3%

31%

66%

Sending children
to college

3%

29%

68%

Starting a
new business

3%

56%

39%
75%

73%

4%

62%
67%

35%
31%

1% 26%

51%

45%

41%

56%

Having a child

1%

37%

62%

Divorcing

2%

33%

65%

Leaving a job

0%

20%

40%

60%

Percentage of clients

I am somewhat prepared
to meet my financial goals

Getting married

I am well prepared or havealready met my financial goals

80%

100%

COVID-19 set to makethe next generation of clients
more risk averse
stereotypical image of younger investors seeking
out high-risk assets such as cryptocurrencies. The
events of 2020 have changed this group’s investing
outlook for the foreseeable future. Female clients andthe mass affluent are also more likely to reduce theirrisk appetite.

As a group, wealth clients are risk-averse, with just a thirdof clients preferring investments with high or very highlevels of risk. The wealthiest clients and male investors
are more likely to have higher risk tolerances. It is alsostriking that nearly half of clients expect to become
more risk-averse due to COVID-19. The youngest clientsplan to reduce their risks the most, contradicting the

The current level of risk tolerance ofclients and the changes they expect
to make as a result of COVID-19
Current risk tolerance levels

Risk tolerance change, as a result of COVID-19

Global

9%

59%

27%

4%

North America

9%
8%
9%
2%
25%

63%
56%
60%
57%
46%

23%
33%
26%
36%
27%

5%
4%
4%
5%
2%

12%
8%
9%

52%
56%
66%

29%
31%
22%

7%
4%
3%

19%
27%
34%

3%
4%
6%
9%

Asia-Pacific
EuropeMiddle East
Latin America
Millennial
Gen X
BoomerMass affluent

60%

18%
7%
Very-high net worth 4%
Ultra-high net worth 1%
37%
High net worth

Female
Male

62%
57%
53%

0%

57%
25%

50%

75%

Percentage of clients

Low or no risk

Moderate risk

39%
50%
38%
43%
56%
60%
42%
33%
45%
44%
41%
27%
46%
41%

20% 3%
5%
30%

65%

12%
8%

43%

100%

0%

25%

50%

75%

Percentage of clients

High risk

Very high risk

Plan to be more risk averse

2021 EY Global Wealth Research Report7﻿

Setting the scene

Asia-Pacific markets
declare a high propensity
to move assets by 2024
A smaller proportion of clients than in the past are looking
to move between wealth providers. In 2019, the EY
organization found that 32% of clients across the globe
planned to move money, down from 40% in 2016. In 2021,
just 28% of clients expect to move wealth relationships
over the next three years.

In 2021, just28%

When these clients do move, they plan to transfer an
average of 38% of their assets to a different provider.
Millennials and clients in Asia-Pacific are the most likely tomove assets, while clients in the US are less likely to move(20%) but plan to shift a larger proportion of their assets
when they do so (45%).

of clients globally
expect to move wealthrelationships over the
next three years.

The degree to which clients
expect to move money todifferent wealth managers overthe next three years and the
expected size of their portfolio
By geography

By client segment
60%

Higher propensity to switch
India
Germany
Italy

Chile

Hong Kong SAR
Luxembourg
NorwayBrazilJapan
GlobalAustralia

30%

China

UK
CanadaSwitzerland

Singapore
UAE
FranceSwedenUS

Mexico0%

Argentina
Larger portion of portfolio
0%

30%

60%

Proportion of total portolio that clients plan to move (%)
Global overall average

82021 EY Global Wealth Research Report% of clients planning to move money% of clients planning to move money

60%

Higher propensity to switch
Millennial
Asia-PacificUltra-high net
worth

Gen X
Very-high net
worth
Mass affluent
Latin America
Middle East
GlobalFemaleHigh net worth
North
BoomerAmerica30%0%EuropeMale

Larger portion of portfolio
0%

30%

60%

Proportion of total portolio that clients plan to move (%)

FinTech providers look set to makethe greatest gains in client relationships
over the next three years
The global wealth industry is one of the most fragmented
financial sectors, and client tastes are evolving rapidly.
Clients across the world plan to adopt more digitallyenabled banking, wealth and investment-related FinTech
services. This trend is strongest in but not isolated toEurope, where innovation is accelerating rapidly.

Family offices are also expected to enjoy further growth,and independent advisors are predicted to enjoy
expansion, especially in North America. Private banks,
which were losing client appeal in 2019, should also
gain ground — especially in Europe. In contrast, retailbanks continue to fall out of favor with clients, although
North America bucks this trend.

The expected change in use of
wealth management providers
over the next three years
Fund manager

2021
by 2024
Net percentage change

Brokerage firm

2021
by 2024
Net percentage change

Retail bank2021
by 2024
Net percentage change

38.5%
36.9%

–4.2%

33.7%
33%

–1.9%

25.2%
22.5%

–10.4%

Family office2021
by 2024
Net percentage change

5.6%
6.2%
10.4%

FinTech (e.g.,
robo-advisor, neobank)2021
by 2024
Net percentage change

8.3%
14.5%

Full-service institution

2021
by 2024
Net percentage change

Private bank2021
by 2024
Net percentage change

5.2%

Independent
financial advisor

2021
by 2024
Net percentage change

7.8%
8.9%
14.3%

36.2%
37.1%

2.4%

0%

73.8%

20.1%
21.1%

25%

50%

75%

100%

Percentage of clients

2021 use vs. 2024 preference and net % change

Note: percentage change figures may differ due to rounding.

2021 EY Global Wealth Research Report9﻿

Setting the scene

Clients prefer performance-based
discretionary investment
management fees

Clients want to change the way they pay for specificwealth and investment services. For discretionary
investment management, there is growing preference
for performance-based fees, which create a stronger
perception of alignment between charges and value
creation. The demand for new charging models
is climbing for advisory investment management
services, too.

The change in preferencein paying for discretionary
and advisory investment
management
Discretionary investment management

Advisory investment management(where an advisor makes and implements
investment decisions)(where an advisor provides guidance
to help make investment decisions)14%

Fixed fee

17%

Fixed fee6%

Per hour of support

20%

Percentage of AUM*

Performance based24%

Performance based

32%

Subscription

5%

Subscription

Per hour of support

7%

Per hour of support

7%
14%

Percentage of AUM*

14%

Percentage of AUM*

21%

Fixed fee4%

Per hour of support

18%

Fixed fee3%

Percentage of AUM*

10%

Performance based

12%
18%

Performance based
Subscription

5%

Subscription

5%

Transaction-based

6%

Transaction-based

7%

Transaction-based

6%

Transaction-based

6%

Combination

Combination

20%

Combination

20%

40%

Percentage of clients
Now

Future21%

Combination

17%
0%

24%

0%

20%

Percentage of clients
Now

Note: the chart does not include “I don’t know” or “not applicable” responses; *Assets under management.

102021 EY Global Wealth Research Report

40%

FutureService, engagement andpurpose are key considerations
when selecting a wealthmanagement provider• Core service elements, most notably performance,
fees and the product suite, are the first and mostobvious priority.
• However, engagement-related factors such asbranding, reputation and the digital offering arealso seen as important indicators.
• Finally, up and coming areas connected with purpose
such as sustainable investing and the diversity ofadvisor teams are also increasingly valued.

As they commence a new provider relationship, clientsare focused on a range of factors covering three key
dimensions of the wealth proposition.

In the three main chapters of this report, we focus on our
key research findings across each of these dimensions.

Important reasons
to clients for selecting
a wealth manager
60%

Strong track record of performance

57%

Competitive fee structure

Percentage of clients

48%
41%
40%

Service

Wide range of investment products
38%

The brand and reputation of the wealthmanager
Strong digital offering

23%
19%

20%

Recommended by my friends or family

16%
13%

Sustainable investment options
Diverse team of advisors (in terms ofgender, age, ethnicity)0%Engagement

PurposeGlobal clients

2021 EY Global Wealth Research Report

11

1

﻿

Service

122021 EY Global Wealth Research Report

The nature of value —and how it’s delivered —is changing

Wealth management clients are increasingly focusedon value, with 73% of clients worldwide indicating that
wealth managers are successfully delivering value for

Clients that indicatedthe service theyreceive is value
for money

4%
3%

money — a very positive finding that suggests wealth firms
have proven their value by guiding clients through thedisruption caused by COVID-19.

21%
16%

48%

25%

48%

Global31%

North America

6%

24%

49%

20%

Asia-Pacific

5%
7%

23%
31%

47%

22%
14%

Europe3% 13%

48%
46%

3%
6%
4%

18%
22%
21%

4%

37%

Latin America

29%
22%
26%

Millennial

48%
47%

26%

46%

22%

Mass affluent

21%
5%4% 13%
5% 15%

48%
51%
51%

24%
32%
29%

High net worth

50%
47%

27%
24%

Female4%5%49%Middle East

18%
22%

0%

20%

40%

60%

80%

Gen X
BoomerVery-high net worth
Ultra-high net worth

Male
100%

Percentage of clients

Strongly
disagreeDisagree

Neither agree
nor disagree

Agree

Strongly
agree

Don't
know

2021 EY Global Wealth Research Report

13Chapter 1: Service

A strong sense of value for money is also evident from the
proportion of clients who are aware of trading and productfees, which has increased to 87%, up from 83% in 2019.

42%

Set against that, the fact that 42% of investors remain
concerned about hidden costs when working with theirwealth manager, driven by a more anxious younger
audience, which suggests there is scope to improvetransparency. That figure rises to 50% in Asia-Pacific,
where regulation has done less to improve fee
transparency than in Europe or North America and where
up-front load and trailer commissions are still common in
many markets.

Clients that indicatedthey are concerned
about the hidden
costs when working
with their wealthmanager or advisor

12%

25%

14%
9%

of investors remain concerned about
hidden costs when working with theirwealth manager suggests there is
scope to improve transparency.

21%

26%
19%

19%

28%
29%

10%

33%

33%
23%

19%

31%
16%

24%

12%
12%

23%
26%
20%

16%
14%
21%
21%

40%

60%

13%

North America

17%

Asia-Pacific

11%
17%

Europe

21%
13%
10%

Millennial

17%

Mass affluent

142021 EY Global Wealth Research Report

Disagree

Neither agree
nor disagree

Agree

Latin America

Gen X
Boomer

29%
21%
20%

13%
12%
10%

High net worth

29%
28%

14%
13%

Female80%

100%

Percentage of clients

Strongly
disagreeMiddle East

27%
26%
30%

34%
39%

Global

15%

34%

21%

14%

27%

24%
19%

25%

12%
17%
16%

25%

14%

8%
18%
20%
12%
24%
14%
30%

0%

27%

22%

12%
7%

7%

28%

Strongly
agree

Don't
know

Very-high net worth
Ultra-high net worth

MalePricing is a key driver in choosing a wealth provider for halfof all investors, and there are growing expectations forthe “basic” elements of wealth offerings to be provided atzero cost. By 2024, an increasing number of investors will
expect free transaction services — such as equity trading —and over 30% will expect free portfolio reports. In the
future, we believe clients may increasingly expect morequalitative elements such as financial planning or advice
or investment education to be provided for free as well.
The good news for providers is that while clients are
expecting more for free, they are still willing to pay
extra for tailored elements of the wealth proposition.

For example, 49% of investors would pay more forincreasingly personalized and specialized products
and services.
There is a particularly strong link between positive
experiences and willingness to pay more. Globally, 53% ofclients would pay more for a range of experience-related
factors. North American clients are less inclined to pay
than most, perhaps reflecting the strength of competitionin the US market. In contrast, the willingness to pay more
for positive experiences rises to 61% among very-high
net worth investors, 76% in Asia-Pacific and 80% among
millennial clients.

Globally53%

of clients would pay
more for a range ofexperience-related factors.

2021 EY Global Wealth Research Report15

﻿

Chapter 1: Service

Features that clientswould be willing to
pay their wealthmanager more for

Clients willing to pay more forexperience-related features

53%

GlobalExperience

Better, exclusive and morereliable digital services

Experience

More quality and quantity ofcontact with your advisor

Experience

Financial training andeducation tailored to you

Experience

A membership connecting
you with other financial or
specialist services

Experience

Product

Product

A larger variety of investment
options and product types

Product

Access to specialist or
alternative investments(e.g., private equity)

2021 EY Global Wealth Research Report

54%

Europe74%

Middle East

39%

Latin America

80%

Millennial

57%

Gen X

32%

Boomer

50%
51%

Mass affluent
High net worth

61%
57%

Very-high net worth
Ultra-high net worth

In short, clients’ concepts of value are changing fast.
The way firms deliver value must change, too. With basic
investment products and services becoming available atvery low cost, the ability to deliver tailored experiences is
becoming the key driver of pricing in wealth management.

16

76%

Asia-Pacific

Easily accessible andconsolidated view of all yourfinancial products and wealthin one place
More personalizedrecommendations for specificproducts and services

34%

North America

57%
51%

Female
Male
0%

25%

50%

75%

100%

Percentage of clients

Firms should urgently explore new models of value,establishing that they can deliver genuinely differentiatedexperiences in areas as varied as advisor engagement,
tailored products, customized financial education ormembership benefits.

Co-opetition will help
to develop richer,tailored services
Global demand for more holistic approaches to wealthmanagement is growing. Our research suggests that threecomplementary elements will be key to developing wealthservices that can increase the financial well-being ofclients and their families.
The first of these is diversification. All client groups see
growing value from a wide spectrum of products andservices, with investors expecting to diversify the financial
products they use from an average of 4.1 product types
today to 5.5 by 2024. Demand for diversification isstrongest in Asia-Pacific, where clients anticipate using
an average of 6.1 financial products within three years,
and among millennials, who expect to adopt an averageof 6.4 product types by the same date.

One inthree
clients invests inalternatives today,
but this is projected
to reach 48% by 2024.

Most notably, investors expect to make much greateruse of alternative investments. Definitions vary between
markets, but increasingly include hedge funds, private
markets, real estate, infrastructure and commodities,
as well as digital assets such as cryptocurrencies. One
in three clients invests in alternatives today, but this is
projected to reach 48% by 2024. Despite an increasinglevel of risk aversion among millennials, appetite foralternatives is growing particularly fast among the group,
indicating a potential disconnect in the risks associatedwith alternative investments — those with a high levelof investment knowledge, and outside North America,
are also showing a higher interest in this asset type. For
example, some Swiss and Asian private banks are now
offering crypto and digital assets trading and custody
ecosystems through their digital exchanges.

2021 EY Global Wealth Research Report17﻿

Chapter 1: Service

Current use ofalternative investments,
future potential use(including consideration)

32%

Global

48%

18%
27%

North America

37%

Asia-Pacific37%

Europe

61%
54%
55%

Middle East

71%
70%
79%

Latin America

Alternative assets —current usage level

32%

Millennial

60%

38%

Gen X

Future usage
opportunity

54%

26%
34%

Boomer14%

Mass affluent

32%
29%

High net worth

46%
55%
68%

Very-high net worth

81%
85%

Ultra-high net worth
0%

25%

50%

75%

100%

Percentage of clients

The second key element of future wealth services will
be more tailored advice. Our research shows increasing
demand for planning services, with the proportion of
investors using estate and tax planning expected to growfrom 30% today to 44% and 45% respectively by 2024.
Appetite for personalized financial support is especially182021 EY Global Wealth Research Reportstrong when the transition between life stages increases
clients’ personal responsibilities. For example, 45% ofinvestors already seek advice on estate planning when
they become parents, and this is expected to rise to
59% over the next three years.

Current use of estate
Retiring
planning and trusts
services, future
Buying a housepotential use (including
Inheriting money
consideration) by clients
at various life stages Sending children to college

26%

42%
38%

54%

36%

54%

42%

Starting a new business

39%

Getting married

36%

57%

34%

Divorcing25%

Leaving a job
0%25%

Estate planningand trusts — future
usage opportunity

51%

45%

Having a child

Estate planning andtrusts — current
usage level

55%

59%

53%

43%
50%

75%

Percentage of clients

The third leg of next-generation wealth management
will be enhanced protection. The COVID-19 pandemic
accelerated the wellness agenda, and clients increasingly
expect wealth providers to protect their financial, physicaland emotional well-being and that of their families. The
need to protect clients’ interests extends from hedging
against market volatility to maintaining personal health.
This is illustrated by growing efforts from some life
insurers to leverage their networks and capabilities into
“health and wealth” propositions.
Financial education is also critical to protection, helping
to confirm that clients understand the products andservices they receive. Appetite for education is highest
among millennial investors, and our research shows thevalue of education peaks around key life events — mostnotably when would-be entrepreneurs start a business.

The correlation between financial education, financial
knowledge and appetite for advice means it is very muchin wealth managers’ interests to prioritize this area.
The need to deliver richer, tailored and more holistic
services in the future will have profound implications
for wealth managers’ service models. Many firms will
want to enhance their ability to partner with othercompanies. That includes technology providers andother financial providers, such as alternatives managers
or health insurers. Excellent data management,alignment with client goals and the ability to build
technology connections will be increasingly vital. In somecircumstances, it may even mean collaborating with rivals,
using “co-opetition” (collaboration with competitors) toprovide clients with niche investments, local expertise orcustomized protection.

2021 EY Global Wealth Management Research Report19﻿

Chapter 1: Service

What comes next?
Integrated financial
relationships
Worldwide, nearly half of investors want to consolidate
all their financial activities in one place. More than
three-quarters of that group — no fewer than 38% of allclients — have yet to choose a single provider. This isa huge opportunity for wealth firms to integrate a fullrange of financial services, including banking, insurance,
wealth and investments into single client relationships,
unlocking major gains in wallet share.
However, appetite for consolidation varies significantly
between regions. It is comparatively low in markets

such as Brazil and Hong Kong SAR but much higher inmarkets such as Australia, Canada, the UK and the US
where the financial advisor model has a long history.
There are also wide variations between investor types.
The desire for single financial relationships is twice asstrong among the mass affluent as among the mostwealthy, higher among women than men, and moremarked among clients with lower levels of financial
knowledge (61%). These variations suggest that different
investor groups see different benefits from integrated
relationships. It is likely that a balance needs to be madebetween delivering the efficiency of a single provider
while managing the diversification of risk. In turn, trust
as a strategy is important, with wealth managers andadvisors relying on their reputation to gain the trustof clients.

The extent clients would prefer
to consolidate with one financial
provider in the future
I would prefer to, or already do,use one single financial provider

49%

Global31%

Mass affluent
High net worth
Very-high net worth
Ultra-high net worth

56%
50%
44%

20%

40%

46%
53%
43%
40%
40%
36%
37%
37%

China
Germany
Hong Kong SAR
India
Italy
Japan
Luxembourg

24%
27%

MexicoNorway60%

Percentage of clients

2021 EY Global Wealth Research Report

25%

Chile

44%
34%
43%
48%

Singapore
SwedenSwitzerland
UAE

43%
54%
61%
0%

56%

Canada55%
47%

High knowledge
Average knowledge
Low knowledge

33%

BrazilFrance

47%
44%
55%

FemaleMale

54%

Australia

43%
44%
48%

Millennial
Gen X
Boomer26%

35%

Argentina

60%

North America
Asia-Pacific
EuropeMiddle East
Latin America

20

I would prefer to, or already do,use one single financial provider

80%

62%
62%

UK
US
100%

0%

20%

40%

Percentage of clients

60%

80%

Clearly, not all investors are seeking a single financial
relationship. But even here there’s scope for more firms
to act as the primary advisor. Among investors who prefermultiple financial providers, one in four say they would pay
more to access a consolidated view of their investment
portfolios, whether via a single provider or an aggregatedview. This is another valuable insight, given that thedesire to retain multiple relationships increases withclients’ levels of wealth. Furthermore, growing regulatory
pressure for open API infrastructures in Europe, Singapore
and Australia should make it easier for wealth managers todeliver consolidated client views of multiple relationships.
If wealth firms are to build on these opportunities, they willneed to convince clients that greater integration will allow
them to achieve their goals in an easier, more tailoredway. The key enabler will be a firm's ability to smoothly
integrate a full range of activities for clients seeking asingle financial provider, or to provide a clear consolidated
overview for those preferring multiple relationships.
For some providers, the answer will be to enhance theirability to function as a one-stop shop. But most firms
are likely to face tougher choices, for example between
curating a universe of products and services on behalfof clients or becoming a specialist provider focused ona niche investor demographic.
Given the varying attitudes to consolidation among
different investor groups, the ability to customize thedegree of integration will be essential to success. This
re-emphasizes the importance of collaboration with otherfinancial providers to “deliver an ecosystem,” and points
to the importance of engaging flexibly with clients using
multiple channels — as we explore in the next sectionof the report.

2021 EY Global Wealth Research Report21

2Engagement222021 EY Global Wealth Research Report

Virtual doesn’t
have to be
impersonal

The COVID-19 pandemic forced wealth clients to accelerate their use ofdigital technology and seems certain to lead to permanent changes in the
behavior of firms and investors.
Globally, 51% of clients plan to make even greater use of digital tools in the
future and the figures are higher among millennials (78%) as well as clientsin Latin America (74%) and Asia-Pacific (64%). One in two wealth clients
also plans to engage more with their advisor virtually moving forward.
Age is a key differentiator here, with millennials twice as keen as baby
boomers to receive advice virtually. Growing adoption is even making its
mark on advisor-led wealth models. No fewer than 37% of clients who preferadvisor-led relationships plan to use more digital tools in the future.

As a result of
COVID-19, clients plan
to use more digitaland virtual tools
provided by theirwealth manager

19%

28%

24%
14%

51%
33%

41%

21%

North America

64%

29%
19%

19%
19%

GlobalAsia-Pacific

49%
62%

EuropeMiddle East

4%

20%

74%

Latin America

5%

15%
16%

78%

Millennial

56%

27%

31%
11%
12%
0%

31%

36%

29%

Gen X
Boomer37%

29%

Advisor-led

63%
54%

24%
30%
25%

50%

HybridDigital-led

75%

100%

Percentage of clients

Do not plan to use moredigital and virtual tools

NeutralPlan to use more digitaland virtual tools

Note: the question was asked on a scale of strongly disagree to strongly agree; data has been grouped; data does not include“I don't know” responses.

2021 EY Global Wealth Research Report23﻿

Chapter 2: Engagement

On the upside, digital adoption is pushing up self-service,empowering client decision-making and reducing cost-toserve. But the shift to digital can also have less positive
consequences if legacy technology prevents firms fromdelivering their full offering to clients. For example, it’s
not uncommon for clients to find that private banks offer
less digital interactivity than retail banks or brokers.

Perhaps more importantly, the growing use of digital
tools is having a profound effect on how clients view
their wealth relationships. More than one in threeclients indicate their wealth management relationshiphas become less personal, and the figure is even higher
among millennial clients and those who prefer digital-led
or hybrid engagement models. Even a third of clients who
prefer advisor-led contact described their relationships asless personal.

Clients indicate the relationship with their wealthmanager has become less personal, in terms of
the level of personal interaction
Effects of more technology use on client segments

Reduced personalization varies acrossmarkets

Technology has reduced personalizationin the relationship in the last three years

Technology has reduced personalization in therelationship in the last three years

Argentina

39%

Global50%

Australia

26%

North America

Canada

36%

China

44%

Latin America

Germany

Boomer28%
49%

Hong Kong SAR

41%

27%
27%

Gen X

43%

France57%

Millennial

60%
65%

Chile

60%

Middle East

35%
42%

Brazil

57%

Asia-Pacific
Europe

46%

67%

India

36%

Italy

39%
38%
45%
41%

Mass affluent
High net worth
Very-high net worth
Ultra-high net worth

0%

20%

Percentage of clients

27%
72%

Singapore
Sweden37%
41%

Switzerland
UAE

40%

60%
38%

UK

46%
42%

Digital-led

40%

Mexico31%

Advisor-led
Hybrid43%

Norway38%
40%

Female
Male

48%

Japan
Luxembourg

24%

US
60%

80%

0%

20%

Percentage of clients

Note: the question was asked on a scale of strongly disagree to strongly agree; data has been grouped; data does
not include "I don't know" responses.

24

2021 EY Global Wealth Research Report

40%

60%

80%

This is a significant finding that appears to combine
expectations of less human interaction with concerns
about less effective personalization. That prospectshould galvanize providers to develop high-quality,
curated digital experiences. Tactical responses
might include improving advisors’ virtual visibility,
harnessing new tools such as virtual reality or using
data-driven insights to customize client interactions.
In the longer term, providers should capitalize on thesignificant amount of data their clients are willingto share and focus on making digital channels evenmore client-centric.

This is a significant
finding that appears to
combine expectations ofless human interaction
with concerns about lesseffective personalization.

Unlocking thepower of data
Clients are far more open to sharing their data thanwealth firms realize, especially among younger
generations. In fact, they are more willing to sharepersonal data with their primary wealth manager
than with their doctor, provided they receive more
relevant services and experiences in return. That places
wealth managers in a far stronger position of trust
than banks, insurers, retailers, technology firms andmedia platforms.

More clients arewilling to sharepersonal data with
their primary wealthmanager than theirdoctor.

2021 EY Global Wealth Research Report25

﻿

Chapter 2: Engagement

To have a more personalized
service or user experience,
how willing are clients to share
their personal data with eachof these organizations?

My primary
wealth manager

71%
78%
69%
68%

A doctor or
health care provider

69%
74%
67%
68%
62%

A bank

50%

64%

52%
An insurance company

40%

53%

41%

An online brokerageor trading platform

43%

29%

21%

15%

11%

23%
24%

A digital entertainment
provider (e.g., Netflix)

23%
12%
23%

A messaging application(e.g., WhatsApp, WeChat)

9%

23%
21%

Social media applications(e.g., Facebook, TikTok)

7%
0%

54%

29%

24%

An internet searchengine (e.g., Google)

59%

37%

29%

An online shop
(e.g., Amazon, Taobao)

21%
25%

69%

57%

36%

A utility company(e.g., electricity provider)

77%

47%

47%

46%

45%

50%

75%

100%

Percentage of clients

Global26

2021 EY Global Wealth Research Report

Millennial

Gen X

BoomerMany wealth clients are clearly ready to go on adata-driven journey with providers. But how far andhow fast can this go?
It’s notable that, in addition to the 72% of clients willingto share their financial goals and ambitions, more thanhalf are also happy to divulge their personal aims andobjectives — information that’s key to delivering tailoredservices and engagement.

In addition, 41% of clients would share investment datafrom other financial providers, and nearly as many would
disclose their interactions with those providers. That gives
firms a crucial opening to use open finance protocols todeliver the kind of fully integrated financial relationships
discussed in the previous section of the report. Arounda quarter of clients are also happy to share details of
their personal spending, marketing preferences andloyalty programs.

The types of personal data that clientswould be willing to share with theirprimary wealth manager
CRM data

Personal
goals data
Financialecosystem
dataInteraction
data

70%

Contact information

55%

Demographic information

72%

Financial goals and ambitions

52%

Personal aims and objectives

41%

Investment data from other providers
Products and services with other providers

37%

Data from my wealth manager interactions

36%
20%

Transactional data from spending

24%

Online marketing preferences
Non-financial
data

24%

Information about loyalty programs

15%

Medical history

11%

Social media behavior

8%

Mobile GPS location data
0%

25%

50%

75%

100%

Percentage of clients

Clients that are willing to share data — what proportion
are willing to share specific categories of personal data

2021 EY Global Wealth Research Report27

﻿

Chapter 2: Engagement

Converting a willingness to share data into active
disclosure will depend on maintaining clients’current high levels of trust. Wealth providers should
demonstrate that they have transparent, best-in-classdata security protocols. Clients should be actively
engaged, for example, by using in-app consoles tocalibrate levels of disclosure, switching elements of
their data footprint on and off as desired.
Wealth firms could also do more to extract value fromthe data they already have. Providers can harness
the tidal wave of data being released in the form of
documents, downloads, logins, messages and meeting
requests. A clear data and analytics strategy will help
firms to gather and label this fast-growing data set, toclean and structure it in a single “golden source,” andthen to interrogate and analyze it.
Leading providers can then use AI and machine learning
to optimize the applicability and value of their client
data. Firms seeking inspiration could look to theircounterparts in technology and online retail, industries
that thrive on customer data and are innovating at
a staggering pace. The use of neuroeconomics canalso help to develop richer client insights. Behavioral
profiling questionnaires can help firms to understandclients’ preferences and thinking processes, helping tocreate more accurate risk profiles and more tailoredexperiences. Firms without in-house expertise inbehavioral science or AI may need to seek support
from third-party specialists.

28

2021 EY Global Wealth Research Report

Next Best Action (NBA) tools are one way of using
innovative technology to tailor client interactions andmake advisor recommendations more relevant. NBA tools
adapt over time, learning from previous interactions andthe personal style of each advisor. They can use AI topredict client attributes and analyze alternative data suchas web analytics or shopping habits. Mobile apps can also
harness NBA tools to deliver digital “investment nudges”
and other micro-interactions.
In the long-term, clients will only be willing to share theirdata if they believe the process is creating value. That
depends on more than just applying data insights in a
relevant way. Firms should also overtly demonstrate
the links between the sharing of certain data, theidentification of more tailored services, and positive
resulting outcomes.

Firms should also overtly
demonstrate the links
between the sharing of certain
data, the identification of
more tailored services, andpositive resulting outcomes.

Taking hybrid models
to the next level
As digital adoption surges, clients are benefiting from theinvestments made by wealth managers in recent years.
A majority of clients not only think technology has madeinvesting cheaper and more efficient (69%), but also thatit has improved their investment decision-making (57%).
As might be expected, digital enthusiasm is even higher
among younger investors.

Opinions are more divided on automated investment
advice. Nearly half of clients believe robo-advice has
benefits, but there is a marked generational split
between millennials (66%) and boomers (24%). However,views of automated advice are largely unaffected bylevels of wealth — in fact, clients with between US$5m
and US$30m of assets are the most enthusiastic
segment. Automation is clearly not a barrier to advisingclients with complex portfolios.

The extent to which a) technology has made investing cheaperand more efficient and b) the digital tools clients now access have
improved their investment decision-making in the last three years

GlobalNorth America
Asia-Pacific
Europe7%8%Technology has not made investing
cheaper and more efficient

Digital tools have not improved
investment decision-making

NeutralNeutralTechnology has made investing
cheaper and more efficient

Digital tools have improved
investment decision-making

22%
22%

3% 16%
10%

Gen X

8%
9%

68%

14%

83%
52%

65%
52%

31%

62%

33%

4% 12%
6%

81%
61%

83%

16%

78%
29%

11%

70%

27%

51%

27%

5%

31%

21%

34%

15%

62%

57%

30%

7%

80%

4% 13%

Boomer11%

26%

Middle East 2% 14%
Latin America
17%
Millennial

69%

59%
42%

40%

15%

Mass affluent

8%

67%

13%

33%

52%

High net worth

7%

21%

71%

12%

32%

55%

Very-high net worth

7%

20%

72%

7%

Ultra-high net worth

13%

27%

0%

25%

23%

Percentage of clients

11%

58%
50%

75%

100%

68%

24%

0%

66%

22%
25%

50%

75%

100%

Percentage of clients

Note: the question was asked on a scale of strongly disagree to strongly agree; data has been grouped;data does not include "I don't know" responses.

2021 EY Global Wealth Research Report29﻿

Chapter 2: Engagement

Of course, belief in the value of digital tools does notmean that all clients want purely virtual relationships.
Clients divide fairly evenly into those preferring advisor-led
engagement (35%), those favoring a digital-led model(28%) and those seeking an equal mix of both (37%).

At first glance, these groups break down along predictablelines. Appetite for digital-led engagement declines
from 37% of mass affluent clients to just 6% among theultra-wealthy, and baby boomers are twice as likely as
millennials to prefer advisor-led relationships. But there
are unexpected insights, too. For example, one in fourhigh net worth and one in five very-high net worth clientssee digital tools as their first choice for engagement.

Clients’ preferred overall
method of engagement in
future: advisor-hybrid-digital
Mainly via an advisor or
relationship manager

Both advisor anddigital platform equally

35%

28%

Global37%

Mainly via a
digital platform

Argentina 0%

31%

42%

North America
Asia-Pacific

31%

42%

27%

Europe

35%

36%

29%

Middle East

21%

Latin America

18%

Millennial
Gen X

24%

42%

30%

Boomer

47%
31%

33%

Mass affluent

29%

37%

High net worth

35%

Very-high net worth

40%

40%

Ultra-high net worth

37%

57%

Germany

34%

Hong Kong SAR

39%

27%

Italy

33%

25%

Japan
Luxembourg

Male

38%

33%
0%

25%

Percentage of clients

30

35%

42%

2021 EY Global Wealth Research Report

50%

75%

23%

UK

30%

US
100%

33%

64%

36%

43%

47%
39%

31%
34%

45%
43%

21%

20%

37%

24%

55%

39%

37%

24%

29%

27%

44%
0%

27%
35%

41%

22%

Switzerland

19%

39%

31%

Sweden32%

44%

Mexico 0%
Singapore

34%

29%

26%

UAE
Female

26%

33%

21%

Norway 10%

6%

22%

24%

53% 71%

28%

20%

68%
44%

50%

India

27%

22%
30%

34%

France

37%

24%

65%

China

33%

43%

22%

45%78%
38%

Chile 5%

28%

54%

34%

40%

Canada

24%

55%

31%

Brazil

27%

35%

65%
43%14%

Australia

25%

Percentage of clients

50%

75%

100%

clients who generally favor hybrid interactions would
prefer to receive customized financial advice directly fromtheir advisor, whether via phone, video or face-to-face —more than three times as many as those who would opt
for digital engagement.

These nuances mean that focusing uniquely on
advisor-led or digital-led models risks overlooking alucrative middle ground. It’s the hybrid model that’s mostpopular, including in markets as diverse as India, Japan,
Luxembourg, Mexico, Singapore and Sweden. A mixtureof advisor and digital interactions is also preferred by the
majority of the ultra-wealthy and by almost half of clients
interested in moving between providers.

Appetite for face-to-face engagement also continues
to exceed the desire for digital interactions when clients
receive financial advice on key life events, such asreaching retirement or making a career change, that callfor financial tailoring around personal circumstances.

The importance of offering “the best of both worlds”
is underlined by the way that specific interactions cantrigger a change in preferences. For example, 76% of

Key activities that clients, who prefer touse hybrid engagement models, wish touse in the futureThis data relates only to clients that prefer a hybrid
engagement model

Executingtransactions

Advisor engagement

Learning about
products and services

Advisor engagement

Monitoring/analyzing
results

Advisor engagement

Opening accounts

64%

Digital engagement

48%

33%

Digital engagement

66%

47%

Advisor engagement

45%

Digital engagement

Advisor engagement

Receiving financial
adviceAdvisor engagement

Digitalpreference51%

Digital engagement

Rebalancing portfolio/
asset allocation

Advisorpreference

35%

52%
46%

Digital engagement

76%
22%

Digital engagement
0%

20%

40%

60%

80%

Percentage of clients
Note: the chart does not show clients who indicated “not applicable.”

2021 EY Global Wealth Research Report

31

﻿

3

PurposeClient beliefs
are changing
fast. Can firms
adapt?

32

2021 EY Global Wealth Research ReportWhen it comes to sustainability goals, wealth providers’
understanding is failing to keep up with clients’ beliefs.
True, half of clients believe wealth managers understandtheir goals, but 41% feel their provider could understandthose goals better and 5% think firms don’t understandthem at all. Wealth providers should note that 35% ofclients who have sustainability goals are looking to switch
wealth managers in the next three years, over twice as
many as among clients without sustainability goals (15%).
It’s also striking that a quarter of millennial clients see
sustainable investment propositions as the most importantfactor when selecting a new wealth manager.

Clients are now investing for purpose and looking beyond
return on investment. For clients, purpose underpins
the reasons why they invest — including their desire to
do-good and to create a meaningful personal legacy.
Worldwide, 78% of wealth clients now have goals related tosustainability in their lives, while 62% of clients, regardlessof age or gender, have goals related to generating alegacy. Each of these two aspects — sustainability andlegacy — are important when considering a client’s overallpurpose and how it is changing.

The proportion of clients who indicatedthey have sustainability goals, and whether
their wealth manager can do more tounderstand those sustainability goals
53%

78%

Global66%

68%

North America

89%

Asia-Pacific

41%
50%

80%
76%

EuropeMiddle East

44%
91%

Latin America

75%

92%

Millennial

49%
53%
57%

83%

Gen X

66%

Boomer

49%

75%
78%
81%

Mass affluent
High net worth
Very-high net worth
Ultra-high net worth

52%
64%
53%

93%

55%

82%
77%

Female
Male
0%

25%

50%

75%

53%
100%

0%

25%

50%

75%

Percentage of clients

Percentage of clients

I have sustainability goals

My wealth manager fully understands

100%

Note: the question was asked on a scale of fully understands to does not understand at all; data has been grouped

2021 EY Global Wealth Research Report33﻿

Chapter 3: Purpose

This deficit in understanding is concerning, given thevital importance of delivering tailored, differentiatedexperiences to clients. The gap is especially stark in somekey Asia-Pacific markets. For example, 97% of clients
based in China have sustainability goals, but three infive feel their provider does not understand these wellenough. In Japan, 86% of clients have sustainability goals,
but three-quarters believe wealth firms could do more tounderstand their priorities.

A major reallocation of investments is clearly in the cards,
with 76% of clients believing it is important to integrate
ESG parameters into their portfolios. Some issues, suchas climate change, are a major concern in every region.
Others are more localized; for example, deforestation is aconcern for 61% of Latin American clients but just 19% for
those in Asia-Pacific. On the social front, clients are most
focused on diversity and inclusion, data protection andhuman rights.

It’s equally striking that ESG concerns are growing fastest
among the industry’s wealthiest clients. For example, justin the last 12 months, climate change has not only climbed
the agenda of 24% of the mass affluent population but also
among 46% of ultra-high net worth clients.

The research shows that ESG is personal to eachindividual — some care more about certain environmental
issues, others more about social issues. This will make iteven more challenging in the future for wealth providers
to understand every client’s unique needs, and to deliver
against them.

A selection ofEnvironmental,
Social and Corporate
Governance issues
that clients indicate
are important tohave considered
into future investments(clients selected their
top three choices)

Global21%
19%

North America

17%
14%

19%
Europe35%

24%

Asia-Pacific

14%
12%

37%

25%

48%

21%

30%
Latin America

36%
0%

10%

20%

48%

47%

31%

19%
19%

Middle East

42%

30%

30%

40%

43%
61%
50%

60%

Percentage of clients

Climate change
and carbon
emissions34

2021 EY Global Wealth Research Report

Air and waterpollution

Data protection
and privacy

Deforestation70%philanthropy by 15%. On average, interest in thesetechniques is higher in Europe, Asia-Pacific and Latin
America than in North America, and stronger among
younger and wealthier clients.

But understanding clients’ sustainability beliefs is only
half the story. Clients also want to change the investing
techniques they use, and just 36% globally expect to rely
primarily on traditional investing approaches by 2024.
That’s a fall of 16% and the decline will be even fasterin Europe (–22%), in Asia-Pacific (–25%) and among theultra-wealthy (–43%).

Above all, impact investing — investments made to
generate specific social or environmental impact alongside
financial returns — is expected to grow an eye-catching
15% by 2024, reaching an average adoption level of 35%.
Adoption rates among some groups will be even higher,
exceeding 50% among ultra-wealthy investors, millennials
and Asia-Pacific clients.

In the next three years, we will see a strong pickup in
the use of sustainable investing strategies. Positive
screening — “best in class” selection — is expected to
grow by 23%, thematic investing by 7% and outrightThe changing role of sustainability in aclient’s personal wealth management:
primary adopted investment
approaches and how this is expected tochange by 2024

North America
EuropeMiddle East
Latin-Central America

17%High net worth
Very-high net worth

26%
35%

Ultra-high net worth –43%
Female

–15%

Male

–16%
–50%

–40%

–30%

13%
14%

12%

–12%
–15%
–18%

Mass affluent

25%

55%

–12%

Boomer

22%

0%

–19%

Gen X

14%
42%

–21%

Millennial

7%

17%
10%

–8%
–25%
–22%
–16%
–20%

Asia-Pacific

15%

23%

–16%

Global

–20%

–10%

0%

20%

20%
22%
28%
27%

8%

19%
24%

7%

0% 10% 20%

30% 40%

15%
27%
15%
19%
50% 60%0%5%

10% 15% 20% 25% 30%

Net percentage change of clients

Net percentage change of clients

Net percentage change of clients

Traditional approach by 2024

Positive screening(best in class) by 2024

Impact investing by 2024

2021 EY Global Wealth Research Report35﻿

Chapter 3: Purpose

Clients’ fast-evolving expectations raise challenging
questions for wealth providers. For example, ourresearch shows that clients with sustainability goals aretwice as likely to use alternative investments, forcing
providers to offer asset types that they may not havea proven expertise or track record with, creating a
potential need for new and innovative partnerships withspecialist providers.
The good news is that ESG investing also creates
opportunities for firms that can harness superior client
insights to build enhanced offerings. For example,
providers could use account openings and portfolio
reviews to capture and clarify clients’ ESG investing

What specificfinancial providers
can do to improve thesustainable investment
experience for
their clients

profiles and then integrate ESG investing experiences
into their wider sustainability strategies. In Europe, forinstance, it has become a wealth manager’s fiduciary
duty to implement sustainability factors and risks withina client’s investment portfolio.
Clients’ growing interest in sustainable investing could also
open the door to more tailored approaches to financial
education. Our research shows that 53% of FinTech androbo-advisor clients would like to engage more directlywith sustainable investing, while nearly half of family officeclients would welcome more guidance in this area. This isa vivid illustration of the importance of financial education
as an intangible source of value.

Brokerage firm

20%

26%
27%
28%
40%

45%
44%

Family office

17%
FinTech(neobank,
robo-advisor)

50%
48%
53%

30%

Full-service
institution

32%
36%
35%

24%

Private bank27%
Independent
financial advisor

23%
0%

10%

20%

30%

37%
36%
35%

34%
36%
31%
40%

50%

60%

Percentage of clients
I would like information and research directly from my wealth manager
I would like specific advice and guidance directly from my wealth manager
I would like a way to engage more directly with my sustainable investments
I would like to see my wealth manager operate more sustainably

36

2021 EY Global Wealth Research ReportFor wealth managers, the challenges and opportunities
posed by sustainable investing only underline theimportance of using data-driven understanding todeliver differentiated, tailored experiences — including
via partnerships. Clear accountability is key, too.
The EY Future Consumer Index1 shows that consumers
around the world want to work with companies that share
their values, and our research shows that one in fiveclients want their wealth firms to behave more sustainably.
The industry’s ultimate goal should be to deliver
end-to-end investing journeys underpinned by awide choice of ESG investing options, tailored advice,
flexible education and supplemental research.

1

Our research shows that53%of FinTech and robo-advisor
clients would like to engage
more directly withsustainable investing.

EY Future Consumer Index, EY — Global, EY UK.

2021 EY Global Wealth Research Report37﻿

Chapter 3: Purpose

and crucial to building a meaningful sense of sharedpurpose with advisors.

D&I is key to engagement,
retention, performanceand purpose
Diversity and inclusion (D&I) is finally moving to theforefront of the wealth industry’s strategic thinking.
Clients increasingly view D&I not just as a goal for firms
to aim for, but as a key driver of their provider choice

D&I has attracted increased interest from 61% of clientsover the past year, and half of all clients want to see
wealth firms demonstrate an active commitment to D&I
in their operations. Globally, one in two clients see D&I
efforts as important when evaluating a wealth manager
and this rises to seven out of ten among millennials, theultra-wealthy and in markets as diverse as China, India,
Italy and Norway.

A wealth manager's
diversity and inclusion
efforts matter to clients
when evaluating a firm
D&I has moderate or high importance48%

Global• Gender38%

North America
Asia-Pacific59%

Europe48%
55%

Middle East

69%

Millennial

67%• Race• Ethnicity• Disability• Education

51%
35%

Boomer

44%
46%
56%

Mass affluent
High net worth
Very-high net worth
Ultra-high net worth

70%

Female

49%

Male

48%

Heterosexual

47%
63%

LGBTQ
0%

25%

50%

Percentage of clients

2021 EY Global Wealth Research Report• Sexual orientation• Religion

Latin America

Gen X

38

Parameters such as:

75%

100%

However, our research also identifies opportunities
for providers to enhance their understanding andsupport of minority groups. One example is that 20% of
LGBTQ clients believe that a diverse team of advisors isimportant when selecting a wealth manager, comparedwith just 12% of heterosexual clients. Another example
is that while only 21% of white North Americans feel
ill-prepared to meet their financial goals, this figure
rises to 40% among Hispanic North Americans and
41% of Asian-Americans.

Given this picture, it’s vital for wealth providers toeffectively serve the full diversity of their client base.
There are positives for the industry here. When it comesto value for money, cost transparency and fiduciarystandards, LGBTQ and many ethnic minority clients’views of their providers are comparable with those of
their heterosexual and white counterparts. Our survey
confirms that these minority client segments see theirwealth managers as providing similar positive day-to-day
experiences to those of the wider client base.

How prepared are different
client groups to meet theiroverall financial goals?

Female

3%

Male

2%

Heterosexual

2%

32%

66%

LGBTQ

4%

32%

64%

African American

0%

American White or Caucasian1%

Hispanic or Latin American

2%

38%

60%

Asian American

4%

37%

59%

0%

35%

62%
67%

31%

68%

32%
79%

20%

25%

50%

75%

100%

Percentage of clients
I am not at all prepared to meet my financial goals
I am somewhat prepared to meet my financial goals
I am well prepared or have already met my financial goals

2021 EY Global Wealth Research Report39﻿

Chapter 3: Purpose

Firms that can better identify and understand thepreferences of under-represented clients will strengthen
engagement and retention among those groups. One
improvement could be to replace segmentation models
based on wealth or age with a nuanced, multilayered
approach that takes into account of a broader range
of demographic and personal data. After all, while
many clients may share similar aims, each one willachieve those goals via a unique journey. A layered
approach to segmentation takes client behaviors, beliefs
and personal circumstances into account alongsidedemographics and financial data. Combining all theseelements to achieve micro-segmentation can uplift client
experiences and create a stronger sense of purpose.
In contrast, firms that fail to demonstrate empathy
risk losing a significant proportion of their clients. The
wealth of women and other under-represented groups
is growing, and our survey shows that minority groups
are more likely than average to be looking for a new
wealth manager. For example, 35% of Asian-Americans
are actively looking to move firms, more than twice thenumber of white North Americans.
Finally, wealth providers need to improve their own
D&I performance — partly because D&I is an increasingly
important driver of attraction and retention for clientsand staff, and partly because growing evidence
suggests that diverse teams are better at detecting blind
spots, enhancing innovation and identifying investment
opportunities. Progress toward true D&I must be visible
to clients, especially among advisor teams and at board
and executive levels. Minority clients are more likely
to feel a shared sense of purpose with providers when
they see firms making active efforts to promote andchampion a culture of equality and representation.

Combining all these elements
to achieve micro-segmentation
can uplift client experiences
and create a stronger senseof purpose.

402021 EY Global Wealth Research Report

Personal legacies are
the ultimate expressionsof purpose
The COVID-19 pandemic has strengthened clients’focus on their own health and well-being and that of
their families and communities. Clients of all ages andlevels of wealth want to look beyond purely financial
outcomes to build purposeful investment portfolios
and relationships.
To differentiate their capabilities in this area,
wealth managers should aspire to build purposeful,personalized client legacies. Our research shows thatnearly two-thirds of clients aim to protect their wealthin the long-term or plan to hand it down to children,
family or charity. These clients are seeking to createa personal legacy. This is not just about retirement or
inheritance. Individuals are increasingly keen to create
a positive legacy through their investments at every
stage of their lives. Firms should understand that it’s
never too soon to understand clients’ goals and to help
them build meaningful living legacies.

Our research shows thatnearly two-thirds of clients
aim to protect their wealthin the long-term.

Delivering personal legacies for clients will depend on
providers’ ability to understand client’s views and beliefs
in detail, including specific investment preferences;to build client offerings that incorporate sustainability
goals into every product and service; to equip advisors
with the tools they need to identify client goals and linkthem to appropriate investments; to track and report on
outcomes, demonstrating accountability; and to enhance
the sustainability of their own operations, including thediversity of their workforce.

Clients that indicated theirfinancial goal is to either protect
their wealth long-term and/or combine this with achieving
safe transition of wealth to theirchildren, family or charity
Global62%

North America

60%
66%

Asia-Pacific

59%
48%

EuropeMiddle East
Latin America

81%
63%
60%
63%

Millennial
Gen X
Boomer

55%
63%
64%

Mass affluent
High net worth
Very-high net worth

79%

Ultra-high net worth

64%

Female

61%

Male

64%
60%
61%

High knowledge
Average knowledge
Low knowledge
0%

25%

50%

75%

100%

Firms should also remember that purpose begins
at home. Many organizations are making public
commitments around their own sustainability as well
as setting societal goals. The challenge now is to alignoperational reality with these ambitious goals — andto show clients that firms are following through byadjusting their behavior, products and services in linewith their stated aims. Firms must take purpose fromthe top of the house and operationalize it throughout theentire firm. Firms should train employees on sustainableproducts and goals and have various demographics
represented to prove to clients the difference they havemanifested.
In the final analysis, however, purpose is about morethan implementation. The better that providers
understand the full richness of their clients’ goals andbeliefs, the easier they will find it to personalize theirofferings, strengthen their relationships and drive
enhanced financial and non-financial performancefor the benefit of all stakeholders. Complementing
a strategic focus on service and engagement with
an emphasis on client purpose holds the key todefending and demonstrating the long-term value ofwealth management.

Percentage of clients

Creating a legacy, as a financial goal

2021 EY Global Wealth Research Report41﻿Conclusion
The uncertainty and disruption of the past year havebrought about profound changes in clients’ values.
Those shifts are apparent in altered financial andpersonal goals, in revised views and beliefs, and in
the increasing appetite and appreciation for digital
tools. Taken together, these changes are having atangible impact on clients’ behavior, expectations andperceptions of value.
The good news for wealth providers is that clients areopen to sharing more personal data, are interested
in consolidating their relationships, and are willing to
pay more for holistic, individualized and meaningfulexperiences. Set against that, clients’ growing demands
for tailoring, diversification, protection, education,
sustainability and flexible interactions also posesignificant challenges.
In response, we believe wealth managers should
integrate a deeper understanding of client beliefs into
their services and interactions. That will elevate client
experiences, build trust and create strong, lasting
relationships based on a shared sense of purpose.
As they implement changes to their propositions,
we expect firms to find the following areas of activity
especially valuable:

1 Customer service modernization—

addressing evolving client preferences for
wealth management or private banking, toprovide intuitive and deeply integrated, highly
individualized service.

2 Distribution and sales optimization
managing channel strategies to effectively
acquire new clients, increase share of client
assets, and better distribute their wealthproducts in the marketplace.

422021 EY Global Wealth Research Report—

3 Marketing transformation— leveraging
the fundamental shifts in wealth management,
transforming marketing from brand advertising
to an activity that fosters trust, builds
relationships and provides a catalyst for
long-term revenue growth.

4 Sustainable investing— understanding
the implications of ESG considerations forstrategy, advice, risk, products, technology
and compliance, and integrating sustainability
into operations in partnership with leading
ESG specialists.

5 Strategic cost transformation—
addressing the industry’s inflection point arounddeclining operating margins, using strategic,
structural and tactical initiatives to reduce
expenses while increasing the flexibility andscalability of the cost base.

6 Tech-enabled transformation—
harnessing the power of technology to simplify,
rationalize and centralize wealth management
operations, clearing the way to enhancecapabilities that attract new clients and inflows
while improving operational efficiency.

7 Data transformation— identifying theinnovative data strategies that help firms better
extract value from their client data, strengthen
analytics throughout the value chain, improvedata quality and deliver the next generation ofdata platforms.

Methodology
The EY organization worked with Savanta to conduct a broad
survey of 2,500 wealth management clients in 21 geographies
to understand what they value most in their wealth management
relationships across service models, engagement choices andvalue-aligned advice.
EY profiled clients not just by traditional segments, such as age,gender, wealth and place of residence, but also by risk appetite,
life stages, profession, sexual orientation, race and ethnicity
and psychographic profiles. The EY organization also asked
respondents to rate their knowledge in managing their finances anddivided them into low, average and high categories depending on
their knowledge of common and complex financial products.
Geographic coverage: North America including the US, Canada and
Mexico; Latin America including Argentina, Brazil and Chile; EMEA
including France, Germany, Italy, Luxembourg, Nordics including
Norway and Sweden, Switzerland, UAE and UK; Asia-Pacificincluding Australia, China, Hong Kong SAR, India, Japan andSingapore.
Parameters

ProfileWealth segments (assets)

2,500
investors

Age

UHNW

US$30m+Millennials

21–40 years

VHNW

US$5m–US$29.9m

Gen X

40–65 years

HNW

US$1m–US$4.9m

Baby boomers 65+ years

Affluent

US$250k–US$1m

Varied respondents based on the following categories:
Education, occupation, risk tolerance and psychographic profiles

21

geographies

Regions

North
America

Latin
America

Europe andMiddle East

Asia-Pacific2021 EY Global Wealth Research Report43﻿Key contacts
Americas
Nalika C. Nanayakkara
EY Americas Wealth & Asset Management
Consulting Leader

LinkedIn profile

Asia-PacificMark Wightman
EY Asia-Pacific Wealth & Asset Management Consulting
Leader and ASEAN Wealth & Asset Management Leader

EY | Building a better working world
EY exists to build a better working world,
helping to create long-term value for clients,
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Enabled by data and technology, diverse
EY teams in over 150 countries provide trust
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Working across assurance, consulting, law,strategy, tax and transactions, EY teams ask
better questions to find new answers for thecomplex issues facing our world today.

LinkedIn profile

EMEIA
Alex Birkin
EY Global Wealth & Asset Management
Consulting Leader, EY EMEIA Wealth &Asset Management Industry Leader

LinkedIn profile

GlobalMike LeeEY Global Wealth & Asset Management
LeaderLinkedIn profile

Additional key contributors include
Hubert Brown
EY Global Wealth & Asset Management
Assistant Director

LinkedIn profile
Phil Hennessey
EY Americas FSO Consulting Senior
Manager, Wealth & Asset Management

LinkedIn profile
Moonsun Kim
EY Americas FSO Consulting Senior
Consultant, Wealth & Asset Management

LinkedIn profile

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