EY: 23% of wealth management clients in the Middle East are looking to switch providers over the next three years

23% of Middle East clients plan to move their assets from wealth management firms in the next 3 years, while 50% of Middle East clients have moved their assets in the past 3 years
Clients in the Middle East are more likely to reevaluate their wealth management providers during major life events such as starting a business or buying a house
25% of wealth management clients in the region currently receive financial advice through mobile apps

In accordance to an EY international survey, 23% of wealth management customers in the Middle East are planning to move assets in the subsequent three years, with 50% of customers having already moved their property in the previous three years.

The EY international survey outcomes showed that in contrast to customers in the Middle East, 32% of international customers moved their property in the past three years, while another 32% sketch to do so over the next three years. While the international sentiment has remained consistent, investors in the Middle East have proven a decreased hunger to move property in contrast with just three years ago.

Sarah Sanders, MENA Wealth and Asset Management Leader, EY, says:
The wealth asset management research performed by EY does point out that the motion of property in the Middle East will slow down in the upcoming years, however there is still a sturdy possibility for wealth management firms to entice property among the Middle East client base. Clients are willing to pay for financial advice, however what they value is evolving rapidly.

Wealth management firms want to better apprehend when their customers would think about shifting their assets, the reasons for doing so, and the characteristics they are weighing up when choosing a new provider.

Major life activities prompt customers to reevaluate assets
Wealth management customers are more probable to reevaluate and move their property in the course of most important life events. In the Middle East, 75% of customers move their money when beginning a new business, 73% make the shift when buying a house, and 60% of customers rethink their asset management when inheriting or receiving money.

Clients in the Middle East are equally likely to swap wealth asset management vendors for any one of six reasons: Quality and reputation, products, advisory capabilities, personal attention, pricing, or technology.

While customers may additionally swap vendors for reasons associated to service capabilities, they are also searching for wealth managers that share comparable values. In the region, 53% of customers are putting huge significance on digital savviness, 48% are searching for advisors that are proactive and attentive, and 45% are choosing advisors who show sound judgement.

As customers go away from more conventional wealth management vendors such as private banks and fund managers, brokerage firms and independent advisors are likely to advantage and see an elevated interest in their services. Based on the consequences of the EY international survey, it is predicted that up to 48% of Middle East customers will move to brokerage firms, while 40% are probably to prefer independent advisors.

In addition, customers in the Middle East will usually use over four specific sorts of wealth providers at the same time to meet unique financial wants such as family security, real estate, retirement funds, and university fees.

Sarah adds, Wealth management customers in the area are cautious and do not prefer to believe one provider with all of their assets. Instead, they have a tendency to work with institutions that have a lengthy history of success in more steady markets abroad. Clients that do think about investing their assets in the area are frequently curious to see how the nearby market would possibly develop. There is consequently a top notch possibility for wealth asset providers in the area to domesticate relationships with these customers and create trust over time, ultimately leading to an extend in the range of assets invested in the Middle East.

Clients eager to undertake digital solutions for normal access to investments and advice

Client preferences in the wealth asset management sector are hastily changing towards digital and voice-enabled assistants not simply for basic, transactional activities, however to manipulate wealth and acquire financial advice. In the Middle East, 46% of clients notably value simple, intuitive digital processes for their investment activities while 25% presently acquire financial advice via cellular apps.

As customers redirect their asset management in the direction of alternative business models, the demand for digital solutions that provide 24x7 anytime, anywhere access on any device is on the rise in fact, 20% of customers in the Middle East say that they would swap wealth asset management companies nowadays for such a service. In addition, there is a fast-growing desire among customers to use cellular apps not only for executing transactions but for opening accounts, monitoring results, rebalancing their portfolio, and getting to know about products and services. The future success of wealth management companies in the Middle East, in an increasingly more high-tech sector, will be decided via their ability to maintain up with the pace of change and reconfigure their digital delivery model to meet these expectations, concludes Sarah.