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The Future of Remote Distribution in Wealth Management

Product Type: Market Research Report
Published by: Datamonitor
Published: December 2002
Product Code: R313-5235
Description
Introduction: Datamonitor’s brief assesses how, when and for whom remote distribution channels can be a value-adding feature of the wealth management proposition. Drawing upon an assessment of the forces driving remote distribution and a detailed analysis of the suitability of each of these channels, it paints a picture of the future direction of distribution in the wealth management sector. Scope: * Assesses the current demand for and supply of remote distribution in the wealth management sector.* Explores some of the key drivers behind the uptake of remote distribution channels by wealth managers.* Assesses the potential value of different remote channels across a number of different client segments, products and services and core activities. * Includes data on remote distribution channels from Datamonitor's unique Wealth Management Distribution Survey of 110 European players.* Includes competitive examples of remote distribution strategies from the European marketplace. Report Highlights: According to Datamonitor’s IMPACT 2002 survey face-to-face channels dominate when it comes to investments. In the last 12 months 73 per cent of respondents that purchased investments did so through face-to-face channels, compared with 9 per cent over the phone and Internet and only 4 per cent via the post.Newer remote channels such as websites and call centres are a less common feature of the distribution mix. On average 70 per cent of European wealth managers have a dedicated wealth management website with only 34 per cent of players offering a website with transactional functionality. Only 18 per cent of European competitors have a dedicated wealth management call centre.High profile failures such as Create and MLHSBC are proof that newer remote channels cannot be forced upon clients. While the growing quality and proliferation of these channels will be reflected in wider client appreciation, this is destined to be a lengthy process and in no way implies an end game in which face-to-face channels become redundant.Reasons to purchase: * Provides competitors with detailed insight into the future direction of wealth management distribution; * Allows competitors to benchmark their distribution strategies against overall competitive practices in the European marketplace.* Provides the basis for competitors' decisions on whether to develop new remote distribution channels and where exactly they can add value.
Table of Contents

INTRODUCTION

 Catalyst

Methodology

Structure

MARKET CONTEXT

 Overview

Current demand for remote distribution

Current supply of remote distribution

Drivers of remote distribution

Future consensus

SUITABILITY OF REMOTE CHANNELS

Overview

Relative merits of different distribution channels

Customer segments

Level of wealth

Investor sophistication

Client type

Attitudes to technology

Products and services

Core activities

Summary

ACTION POINTS

APPENDIX

Further reading

Datamonitor Reports

Datamonitor Global Wealth Service Briefs

Datamonitor Global Wealth Service Profiles

Do you need further information?

Datamonitor financial services consulting

SPP writing team

Figure 1: Brief structure: from analysis to recommendations

Figure 2: Consumers prefer face-to-face channels for purchasing investments
and investment advice

Figure 3: Face-to-face contact dominates but wealth managers’ attitude to
newer remote channels varies across Europe

Figure 4: The evolution of the online channel in the wealth management
proposition

Figure 5: Websites and call centres are primarily introduced to create an
additional marketing or service channel

Figure 6: The forces driving and opposing the uptake of newer remote
distribution channels by wealth managers

Figure 7: Wealth managers see more potential for the Internet than for call
centres, Q3 2002

Figure 8: Other remote channels do not generate much interest among wealth
managers, Q3 2002

Figure 9: Wealth managers must assess and compare the relative merits and
drawbacks of each distribution channel

Figure 10: The overall usage of remote channels for purchasing an investment is
higher among higher income categories

Figure 11: The diffusion of innovation curve

Figure 12: European wealth managers rate remote channels as more important
for handling transactions and account maintenance
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