Competition for expat clients in the Australian wealth market is fierce; providers that are able to on-board clients in a foreign country and assist them during the relocation will enjoy a competitive advantage, according to GlobalData Financial Services
Australian HNW expats are a lucrative target segment thanks to their more complex servicing requirements, which translates into higher fee income.
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However, competition is fierce, requiring wealth managers to up their game when reaching out to this segment.
Targeting HNW expats prior to their departure has the potential to provide a wealth manager with a competitive advantage, as it allows a provider to reach out to new clients before competitors can.
Yet, our previous surveying of the market shows that only a handful of providers target expats while they still reside in their home country.
At least to some extent this can be attributed to the shrinking international footprint of Australian banks. However, this makes it even more important to find new avenues to reach out to expats while they still reside in their country of origin.
Partnerships with relocation companies represent one such means. In many cases, a migrant’s first point of contact is a relocation company, making them a natural referral partner choice.
In fact, not only would such partnerships provide a cost-effective means to generate new business, but it would allow providers to set themselves apart from the competition.
