Actively hiring the right type of person and maintaining long term relationships are two key aspects to running a successful business, according to John Younger, managing director and head, client & business strategy for RBC Wealth Management in the UK.
Mr Younger began his career at RBC Capital Markets in 1992 and then re-joined RBC Wealth Management in 2016 following several roles in the financial sector, including at the Bank of England.
Mr Younger described relationship managers as more efficient when it comes to giving financial advice, highlighting the importance of maintaining human relationships and building an emotional connection with the client. He said that although technology is one way to engage with the next generation, “clients will always value face-to-face relationships and personalised advice”.
Change is constant, and developing human skills such as critical thinking and decision making is essential as they are more difficult to achieve with technology.
Mr Younger said that a relationship manager can help clients understand their financial goals and help build these skills as well as trust, “which is the foundation of a solid client relationship.”
He explained that RBC takes a “segmented approach” as it provides more opportunities for a company to focus on a specific market or client which “will typically yield a higher success rate than a general approach.”
He continued to explain that RBC’s client service development is focused on generating benefits for clients beyond simply financial gain from their investments, but also achieving “personal ambitions” such as supporting family, a happy retirement or the pursuit of new business ventures.
However, he explained, technology is still a fundamental influence in targeting the next generation. This, together with increasing investor interest in corporate behaviour, and the social interests of companies that clients work with, continues to be of growing importance.
Commissioned by RBC Wealth Management, The Economist Intelligence Unit (EIU) undertook a study of high net worth individuals (HNWIs) from March to May 2018. The new face of wealth & legacy survey which reached 1,051 individuals in Canada, the United States, United Kingdom and Asia (China, Hong Kong and Singapore) explored how the meanings of legacy and wealth are being redefined across regions, genders and generations.
According to the research, 53 percent of global respondents believe that new technologies have provided opportunities to generate wealth.
Engaging the next generation with the use of technology is key for RBC. It not only helps educate people about money management but also plays an important role in sales, making it easier for people to understand what assets are available to them, whilst also making those assets more accessible through features such as online and mobile banking.
Mr Younger highlighted how RBC is focusing on the use of technology in banking. Innovation labs are investigating how to “target future clients and help prioritise the innovation needs of the bank’s wealth management and investment divisions”.
These technology hubs are “developing digital capabilities and driving innovation”, focusing on “developing and executing next-generation initiatives” in order to enhance the experience and outcomes of investors and advisers. This, Mr Younger said is vital for a financial business to maintain success.
RBC Wealth Management, part of the Royal Bank of Canada is the world’s fifth largest wealth manager by assets. It has C$986 billion of assets under administration, C$651 billion of assets under management and more than 4,800 financial consultants, advisers, private bankers, and trust officers around the world.
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