MDRC study shows public's Satisfaction rating for wealth managers close to levels of 2000
Client satisfaction in UK private banks and wealth managers continued to improve in 2005, and is close to the levels of satisfaction seen prior to the stock market falls of 2000 and 2001, according to research carried out by strategy consultants Market-Dynamics Research & Consulting (MDRC).
In the 2005 study, MDRC was able to investigate the relative satisfaction or dissatisfaction of more than 2,500 clients of private banks and wealth managers, from large investment management houses to small private banks.
As in previous studies, MDRC looked at how well the UK's wealth managers performed across the entire client experience and, in particular, how well the service provider met clients' expectations.
It found overall satisfaction in UK private banks and wealth managers continued to rise in 2005. As measured by the MDRC model, aggregate client satisfaction increased by 5.4% to 64.1% in 2005, driven by a modest improvement in the performance across most of the firms in the survey.
The lowest score given in 2005 was 52.8%, compared to 2003 when the lowest was 36.6%.
According to the research, no firm was given a "poor" score and a "good" rating was achieved by 66 of the 92 private banks and private clients' managers in the survey, a 43% increase in the number of firms rated as good or better in 2004.
However, overall improvement in satisfaction across the industry was offset by the "value for money" rating given by clients. The increase in ad valorem or percentage based charges has caused many clients to question the value offered by their wealth manager.
Kleinwort Benson Private Bank achieved the highest client satisfaction score for UK expatriates with a rating of 78.1%, while UBS Wealth Management achieved the highest client satisfaction score for UK domiciled clients with 83.4%.
Richard Williams, managing director of MDRC, said: "Our research suggests clients' expectations are continuing to evolve and although many of the UK's private banks and wealth managers aim to offer exemplary service, in practice the delivery is less than perfect. An increasing number of clients are questioning the value added by wealth managers when the ad valorem fees levied by firms are increasing rapidly, but portfolio performance is often only in line with a good tracker
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