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Wealth Managers, Start Paying Attention To Social Impact

This article is more than 8 years old.

Each year, Capgemini, in partnership with RBC Wealth Management, conducts a formal survey of high net-worth individuals (HNWIs) and shares the data publicly. One of the striking features of the report in recent years, is the increasing interest among wealthy individuals regarding social impact.

David Wilson, head of the strategic analysis group for Capgemini's financial services strategic business unit gave me three highlights for consideration. If you are a wealth manager, pay attention!

  1. Be Aware: Social impact (defined as "an investment of time, money and/or expertise with the goal of generating positive social impact, which may or may not have a financial benefit") is highly important to High Net Worth Individuals (HNWIs). However despite their interest in driving social impact, HNWIs do not have a single preferred source to help them navigate the complexities involved. Currently they are getting advice from two distinct groups: their family and friends, and their wealth managers, and many are receiving no advice at all.
  2. Acknowledge the Opportunity: HNWIs are seeking more advice on social impact overall, and wealth managers are the most sought after professional source of advice. HNWIs are looking to their wealth managers for support in setting clear social impact goals, determining which investments are the most appropriate in their area of interest, structuring their investments, and measuring the impact of their social impact efforts.
  3. Prepare: Embedding social impact discussions into the overall wealth management approach and making tactical investments to build out their social impact offering will help firms to better meet the opportunity. Several challenges will need to be overcome, such as a lack of clarity on social impact definition and goals, inconsistent or unqualified sources of advice with inadequate levels of expertise, lack of specialized products and solutions, and lack of standard metrics.

On Thursday, February 4, 2016 at 9:00 AM Eastern, Wilson will join me for a live discussion about these insights and their implications for wealth managers. Tune in here then to watch the interview live. Post questions in the comments below or tweet questions before the interview to @devindthorpe.

You can download an audio podcast here or subscribe via iTunes.

More about Capgemini:

Twitter : @capgemini

With people in over 40 countries, Capgemini is one of the world's foremost providers of consulting, technology and outsourcing services. The Group reported 2014 global revenues of EUR 10.573 billion. Together with its clients, Capgemini creates and delivers business, technology and digital solutions that fit their needs, enabling them to achieve innovation and competitiveness. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business Experience™, and draws on Rightshore®, its worldwide delivery model.

Wilson's bio:

Twitter: @david_p_wilson

David Wilson is Head of the Strategic Analysis Group, for Capgemini’s Financial Services Strategic Business Unit. David has professional services and financial services experience spanning the areas of strategic research and analysis, management consulting, and marketing.

David focuses on wealth management and in addition to client engagements, has co-authored leading reports such as the Capgemini RBC Wealth Management World Wealth Report, Asia-Pacific Wealth Report, U.S. Wealth Report, and the Capgemini RBS World Payments Report.

Previously, David was a strategy consultant for Capgemini Consulting’s Strategy and Transformation practice where he worked on projects across a variety of sectors.

Prior to joining Capgemini in 2007, David worked for the U.S. wealth management divisions of UBS Wealth Management and Merrill Lynch Global Private Client Group.

David was born in England and graduated with degrees in economics and French from universities in the USA and France. In addition, he played professional basketball in Toulouse, France.

David is currently based in Asia.