Unlocking value: non-financial services in wealth management

Amid expectations of interest rate cuts and ongoing geopolitical turmoil, clients are becoming increasingly demanding in this already complex environment. They’re getting more financially savvy, demanding more complex products and requiring more adaptive and resilient financial strategies. In addition, clients are also calling for a comprehensive range of services to fully support their goals and aspirations. Tailoring wealth Management strategies to accommodate clients’ current and future financial needs is essential for long-term success.

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Understanding evolving client demands and preferences

It has to get personal

In an effort to differentiate themselves, wealth managers are increasingly offering non-financial services in addition to the financial products they provide. These services enable clients to articulate a broad range of personal and financial goals, reshaping their wealth strategy beyond mere Investment objectives.

This trend will continue: offering non-financial services will become the new normal for wealth managers seeking to stand out in a competitive market. This expanded Service offering has a host of additional benefits, allowing more personal and meaningful Client interactions as well as fostering deeper relationships and greater trust.

By integrating these diverse goals into Wealth strategy, one can give its clients a holistic view of their financial health, addressing their overall well-being and future aspirations while optimising their returns and investments with the help of strategic planning and comprehensive advice.

Personalisation backed by empirical data

The findings of PwC’s Wealth Management Insights 2024 indicate growing demand for non-financial Services among (U)HNWIs, who are seeking more personalised and holistic advice to help them navigate an increasingly complex financial landscape. This has led to a surge in demand for services such as tax and legal advice, estate and succession planning, real estate and M&A advice.

Specifically, 31% of respondents said that they were most interested in tax and legal advice; 23% expressed a preference for real estate advice, and 19% were seeking M&A advice.

The next generation demands seamless, all-in-one solutions, pushing wealth managers to adopt a digital-first, fully integrated model that delivers a comprehensive suite of services on a single, streamlined platform.

Patrick Akiki, Partner, Financial Services Markets Leader, PwC Switzerland

A huge but challenging opportunity

Despite the clear demand for non-financial services, we understand the complexity involved in fully integrating these into wealth management offerings. However, it’s important to understand that this gap represents a significant opportunity for firms to differentiate themselves and better meet their clients’ needs.

It’s an opportunity that will grow: the next generation of wealthy individuals, who will inherit substantial wealth, prefer one-stop shops, offering a comprehensive suite of services for convenience and cultural expectations. These people are used to personalised, integrated experiences, similar to those provided by smartphones or even shopping centres. Wealth managers who offer seamless, comprehensive services will be well-positioned to attract and retain these future clients, ensuring their wealth is effectively managed and protected.

Defining non-financial services

White-glove services: elevating the non-financial offering

Serving clients holistically involves going above and beyond traditional wealth management, addressing every aspect of their lives with highly professionalised services. This approach goes the “extra-mile”, as it ensures that clients receive the most comprehensive care and support, responding promptly and precisely to any need.

Hierarchy of non-financial services in wealth management

The above illustration shows the levels of sophistication of non-financial services offered in wealth management. On the sides are fundamental ancillary services such as tax planning, legal advisory and real estate consulting, which provide essential support, and lifestyle management services, which cater to broader personal and lifestyle needs.

At the heart of the diamond are the white glove services, representing the highest level of personalised and exclusive attention, designed to meet the most complex and high-end client demands.