Much of the financial services industry puts intense strategic focus on building a large aggregate book of business with high net worth clients. In effect, they look to apply the 80/20 Rule to their operations, trying to augment their bases of financial assets by attracting a few very large clients rather than many more small clients.

Many firms, however, continue to pursue a marketing strategy focused on high net worth clients despite managment reporting results that show a higher average profit per dollar of client assets among much less wealthy clients, who tend to be cheaper to serve and who pay higher prices.

1. Private Clients

Private Clients, or High Net Worth clients, are the marketing and strategic focus of many financial services providers, a number of which specifically style themselves as wealth management firms or divisions. The question is, exactly what is a high net worth client, or private client? There is no ironclad definition, and the answer differs by firm, often widely.More »

2. Households

Proper householding is critical to identifying and properly serving high net worth clients. This is the art and science of finding related accounts and grouping them together for analytic, pricing and servicing purposes.More »

3. Net Worth

For most financial services firms, Net Worth is not the typical yardstick for determining the size and importance of a client or a client household. The reason is that Net Worth includes illiquid assets.More »

4. Financial Assets

Financial Assets, instead, are the usual measurement for sizing clients.More »

5. Private Banking

Private BankingMore »

6. The Kovel Rule

Wealth management sometimes involves aggressive strategies for tax minimization, some of which may push the envelope of legality. The Kovel Rule deals with the degree of confidentiality that a client may expect in discussing sensitive matters of this sort.More »

7. Specialists

To assist financial advisors with wealth management issues, the services of various Specialists may be utilized.More »

8. High Net Worth Specialists

In fact, various financial services firms find the need for dedicated High Net Worth Specialists to be on staff.More »

9. Family Offices

Family Offices are premier providers of services to high net worth clients.More »

10. The Largest Family Offices

A recent study of the largest family offices.More »