How Understanding UHNWI’s Interests Gives Family Offices an Edge
November 01. 2021
Family offices have been one of the hottest talking points in the finance world over the past two years.
However, this is not to say all wealthy individuals use the services of family offices. For example, the concept of family offices is still developing in the emerging economies and much of the developing world. Most families manage their wealth the old-fashioned way, and the notion of family offices is a preserve of American and European families.
So, one could argue that sticking to traditions is one reason why family offices are not prevalent in the emerging economies.
But there is also the possibility that the wealthy in these regions are not conversant with the concept of family offices. To be sure, many people are newly rich in developing and emerging economies. Thus, they are new in the rarefied world where family offices offer convenience and continuity of wealth. The question, therefore, is how do family offices make the newly rich individuals their clients?
The short answer could be that one needs to find out where the wealthy people spend their leisure time. According to Wealth-X’s Interests, Passions, and Hobbies of the Wealthy 2021, leisure time is an integral part of the rich’s daily routine.
You’d rarely miss the individuals on the golf course, tennis court, or the art gallery. Hence, finding out the UHNWI’s interests could be the key to turning some of them into clients.
In societies like India, where wealth is a closely-held family treasure, it takes more than mere professionalism to convince them to hand over the assets to a family office. The traditional way of transferring wealth from one generation to the next could be outdated, but people feel more comfortable with something they understand better.
So, imagine pursuing UHNWIs in India using the same techniques applied in Europe and North America? This is almost a fool’s errand.
It is no surprise that most wealthy people also invest in their hobbies. For instance, one is likely to buy a piece of art if they spend lots of time at the gallery.