The profile of German HNW investors is changing. The above-average age of HNW investors means that intergenerational wealth transfer, succession, and inheritance planning are all front of mind. While wealth preservation rather than accumulation may be the predominant strategy among this age group, German HNW investors are actually showing a greater openness to new investment options and an increasing appetite for robo-advice services.
Critical Success Factors
German HNW investors are older than their European counterparts
Investment style preferences: Lack of time and expertise drive uptake of advice
Women remain under-represented among HNW investors, but are likely to form a growing target segment
Change is occurring, and a new generation of female HNW individuals are emerging
Wealth managers should take account of the differing needs of emerging female HNW wealth
German wealth managers rely more heavily on cold calling and external referrals
Wealth managers should aim to improve co-operation with business banking
The German expat market is currently a small but steady sector
Job transfer is the number one reason for HNW investors moving to Germany
Brexit could potentially lead to an increase in the expat population
HNW demand for robo-advice far outstrips supply
The German robo-advice market is rapidly expanding
Demand among HNW investors is increasing, and is currently unmatched by wealth offerings
Wealth managers need to develop hybrid models, with automated advice supporting the HNW advisory offering.