UK Wealth Manager Customer Satisfaction Falls - New Study

Nick Parmee

18 March 2008

New research from UK-based Market Dynamics Research & Consulting client reveals that its client satisfaction benchmark fell by 5.6 per cent to 59.8 in 2007, the lowest level since 2003. But, as measured in this study, the overall decline in the index is not a general decline of satisfaction across the industry, rather it is an effect of a sharp reduction in satisfaction at a relatively small number of wealth managers. Areas for concern included the high level of relationship staff turnover, the relatively low level of experience of some relationship staff, the frequency and quality of communication (particularly about current market conditions), the level of fees (particularly for ancillary products and services) and the impact of the non-wealth management activity of the bank (or banking parent) on the wealth management business. This last concern had an adverse impact on client satisfaction at some of the UK's largest wealth managers. The highest client satisfaction score in 2007 for UK domiciled clients was achieved by C Hoare & Co with an increased rating of 82.0. The highest client satisfaction score for UK expatriates was achieved by Kleinwort Benson Private Bank (a rating of 75.2). Very sharp falls in client satisfaction were recorded at those firms adversely affected by the credit crisis, although clients were not expressing disappointment with investment performance.