Mubasher: Around 23% of wealth management clients in the Middle East (ME) are planning to move assets in the next three years, while 50% have already moved their assets in the past three years, a recent global survey by EY shows.
Similarly, 23% of wealth management clients in the Middle East are looking to switch providers over the next three years.
The survey results showed that in comparison to clients in the Middle East, 32% of global clients moved their assets in the past three years, while another 32% plan to do so over the next three years.
“The wealth asset management research conducted by EY does indicate that the movement of assets in the Middle East will slow down in the upcoming years, but there is still a strong opportunity for wealth management firms to attract assets among the Middle East client base. Clients are willing to pay for financial advice, but what they value is evolving rapidly,” said Sarah Sanders, MENA Wealth and Asset Management Leader at EY.
“Wealth management firms need to better understand when their clients would consider moving their assets, the reasons for doing so, and the qualities they are weighing up when selecting a new provider,” she added.
EY explained that wealth management clients are more likely to reevaluate and move their assets during major life events. In the Middle East, 75% of clients move their money when starting a new business, 73% make the shift when buying a house, and 60% of clients reconsider their asset management when inheriting or receiving money.
Meanwhile, there are six main reasons why clients in the Middle East are likely to switch wealth asset management providers, namely quality and reputation, products, advisory capabilities, personal attention, pricing, and technology.
Speaking of tech, the survey showed that 25% of wealth management clients in the region currently receive financial advice through mobile apps.
Customer preference in the region showed that 53% of clients are placing more importance on digital savviness, 48% are looking for advisors that are proactive and attentive, while 45% are selecting advisors who demonstrate sound judgement.