A wealth management firm doesn’t reach the top position overnight. It is the result of years of continuous striving and dedicated efforts to ensure high level profitability of the customers that makes them reach a position where they are respected and revered. As a general audience and customer, there are a lot of things that you might not know about top wealth management companies. Here’s some inside information sourced from some of the best wealth management companies regarding their working!
1. They target a specific market
A top wealth management firm reports that they do not chase every client. Each company is known for a specific list of customers segregated on the basis of their financial worth. There are ‘upcoming affluent’ investors whose worth falls in the category of Rs. 10 Lacs to Rs. 50 Lacs, there are ‘High net worth’ investors who have Rs. 50 lacs to Rs. 2 crores, and then there are people with ‘extremely high net worth’ of Rs. 2.5 crores and above.
2. They focus on profitable clients
Every financial company has their personal agenda in mind too. They are running a multi-million crore organization because they want to profit from it. Yes, client’s profitability takes a center stage because unless the clients profit, they cannot. However, they identify clients on the basis of the ones who offer profitability and the ones who offer more risk by delaying payments or those who have unrealistic expectations. More the number of profitable clients more are the profit to all the customers.
3. They have separate teams
A lot of financial advisory firms want their advisors and consultants to don a variety of roles. However, it is not possible for the same person to offer you the best retirement plans, and then tend to your grievances too! Top wealth management firms keep separate teams for everything. While one brings in new clients, another team offers them products and services, and yet another team attends to their problems and queries.
4. They don’t hide their terms and conditions
A lot of us suffer because of hidden terms and conditions. This reminds me of an incident I had faced during the start of my career. I had purchased an insurance policy from an agent, and he had shown me the breakup of premiums that I’ll need to pay and what I’ll get at the end of 10 years. However, what he had shown on the life insurance calculator wasn’t the money I had received! It was pretty painful to lose money in such a scheme.
Top wealth management firms don’t hide terms and conditions from their customers. And they even communicate about their remuneration clearly without using double meaning terms or clauses.