HNW investors are drawn to firms with the best online capabilities; even the older investors which may come as a surprise to many advisors. Internet use breeds more internet use. In today’s online world it would benefit financial services firms attempting to increase market share, within the universe of HNW investors, to increase both the depth and breadth of their online offerings. Considering that approximately 42% of HNW investors, age 60 and younger, are heavy internet users, and that 64% of these investors consider online capabilities to be very important, it follows that nearly three in ten (27%) of HNW investors will be drawn toward those firms having the most developed online capabilities. This indicates that investment in online offerings will continue to pay off for financial services providers, seeking the efficiencies that can best be achieved through web technologies.

HNW investors of all ages are largely an online group, with more than nine in ten spending at least one hour per week on the Internet. When asked how much time was spent online within a typical week and what proportion of that time was devoted to financial activities, it was found that nearly all (92%) average at least one hour per week online. Of these, fully two-thirds devote some of their online time exclusively to financial activities. While it is largely believed that older investors are less likely to be online or use the Internet for financial activities, this may not be fully true. Findings suggest that while older HNW investors are over-represented among those not using the Internet for financial activities, the ones that are online are as likely as their younger counterparts to devote some portion of that time exclusively to financial activities.

In the future, the new post-financial crisis world, it will be important to ensure the personal connection is not lost online, especially with female clients. Understand that in spite of the benefits to both customer and provider that may be realized through the increased usage of online process, there may be some liabilities. The feeling among affluent investors that personal relationship is diminished is one. Furthermore, these types of losses may be more noticeable among female clientele, for whom greater emphasis may be placed on personal relationships and contact. Financial services firms should take steps to ensure that other processes (perhaps non-transactional) are put in place to ensure that the personal connection is not lost, even as a transition to more transactions being completed online continues.

Encourage use of your website– it affects users overall attitude. It is not enough to create an interesting website laden with useful tools. The website must be updated often, even daily. Encouragement and training should be given to Affluent clients to actually use the website for various financial issues. Even then, simply encouraging them to use the website may not always be enough. Nearly one in five affluent investors wish that their provider would spend more time showing them how to do things online.

For more information: Communicating Effectively with Investors

---