Alpa Bhakta, CEO of Butterfield Mortgages outlines what HNWIs expect from their financial services provider, beyond the obvious.
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The UK financial services industry is anything but static. Since the onset of the global financial crisis, the industry has been in a constant state of flux. The rise of financial technology, or FinTech, has transformed the way organisations engage with their clients and deliver their products. At the same time, new lenders and challenger banks are springing up across the market, increasing competition.
These trends offer opportunities, and indeed challenges, for financial and professional service providers. Moreover, it emphasises the need for providers to be flexible, and adapt to changing market conditions to ensure they can meet the evolving needs of their clients. This is particularly true of high net-worth individuals (HNWIs), who typically present a nuanced set of demands not every provider can satisfy.
But just what are the wealthy and ultra-wealthy on the lookout for when it comes to finding the right financial services provider to meet their needs? As a prime property mortgage provider dealing exclusively with the needs of HNWIs, Butterfield Mortgages Limited (BML) recently conducted research to answer this pertinent question.
What we discovered may come as no surprise to many, but it does indicate where businesses need to direct their focus to remain competitive. Reigning supreme is the quality of customer care received—77% of the 550 UK-based HNWIs we surveyed said this factor stands as a “key consideration” when considering different providers.
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By GlobalDataQuality customer care can mean different things to different people, which is why BML also gauged people’s attitudes towards different aspects of a service. Below are a few essential considerations that providers should keep in mind in their dealings with HNW clientele.
Be attentive
According to BML’s research, 64% of HNWIs said they are willing to pay more, or achieve lower returns, when making a financial decision if they receive a high quality of customer care.
One crucial factor is attention; HNWIs naturally have higher service expectations than others, particularly as they are paying premiums for personalised services. Nearly two-thirds (63%) of HNWIs have changed providers in the past 24 months because of the lack of attention they received.
From the outset, financial service providers must ensure they maintain a clear communication strategy with their clients to enable them to effectively address any arising concerns and also offer tailored advice. Consistent communication is particularly important when an HNWI is searching for their ideal service provider; many will expect several face-to-face meetings before settling on who to work with.
Confidentiality is key
The nature of having an extensive financial portfolio means that many HNWIs are seeking complete confidentiality when dealing with their financial matters. In fact, three out of four (74%) HNWIs stated that discretion and confidentiality are “important” or “very important” factors when it comes to choosing a service provider.
Providers cannot, therefore, overlook the importance of guaranteeing discretion. They must not only take all the necessary steps to ensure that their clients’ data does not fall into the wrong hands, but they must also assure all current and prospective clients that their confidentiality will be a main priority over the course of the relationship.
Ethical investing
Today, the changing ethical landscape means that investors are not just concerned about returns, capital growth and profit when making a financial decision. For instance, and on par with confidentiality, 74% of respondents to BML’s survey revealed they are actively conscious of the impact of their investments on wider society.
What this means to each individual will naturally differ; some will want to follow investment avenues that support environmental projects, while others will be more driven towards initiatives that would have a positive societal or governmental impact. Many also consider the corporate social responsibility (CSR) policy in place by different organisations, and I’m pleased to say that BML has been a leader in this field. The Butterfield Group, of which we are a part, proudly serves as a global pilot partner of the Seabin Project—an initiative to reduce the amount of waste in the world’s waters.
The most important lesson to take away from BML’s research is that the quality of customer care cannot be overlooked by service providers, particularly when it comes to HNWIs. Indeed, anyone who works closely with this demographic—or the intermediaries who represent them—will know they typically expect a very personal, bespoke and attentive service from businesses. This is why I encourage providers to think carefully about how they can deliver a valuable service to keep up with the specific, and changing, needs of their HNWI clientele, forging long-term relationships built on trust and transparency.
Alpa Bhakta is the CEO of Butterfield Mortgages Limited. Part of the Butterfield Group and a subsidiary of The Bank of N.T. Butterfield & Son Limited. Butterfield Mortgages Limited is a London-based prime property mortgage provider with a particular focus on the needs of UK and international HNWIs.
