Financial Planning
Holistic wealth management solutions remain advice key: NAB

The delegator, the validator, and the self-directed - when it comes to managing personal wealth, research from NAB shows Australians continue to fall into one of three key investor personas.

The delegator - knows the importance of managing their wealth, but is too time poor to do it themselves and consults a financial adviser.

The validator - wants support and advice to help them manage their wealth, but doesn't have an adviser.

The self-directed - understands the different investment strategies available to them, and doesn't want an adviser.

To best service these three categories of investors, NAB called out the importance of holistic wealth management solutions to the future of the industry - particularly for the 'Delegators' and 'Validators'.

"The 'Delegators' and 'Validators' particularly want more support and advice, and so we need to invest to give customers the ability to engage in all stages of the wealth management lifecycle," MLC chief executive and NAB executive general manager of wealth Matthew Lawrance said.

"That includes a single offering that provides a multitude of investment vehicles so they can build their wealth; an aggregated view of their wealth position so they can monitor their wealth; and ongoing tools and insights to help them manage their wealth."

While these personas will endure, NAB also identified trends which they say will shape the products and services of the future, focusing specifically on the needs of millennial clients.

"Having grown up within a digital-first but also debt-ridden world, millennial customers are re-shaping the traditional 'Australian Dream' as they place more emphasis on lifestyle and wellbeing over traditional goals such as owning a house or car," the report said.

"These preferences extend to the value they place on creating social value as they are two times more likely to invest in social causes through impact investment vehicles than their predecessors."

According to NAB, as the millennial cohort starts to move up the age curve and build their financial futures, the wealth management models of today need to adapt.

Source: 'Empowered Wealth - Exploring the Wealth Management Models of the Future', National Australia Bank

Read more: NABAdviserFinancial planningMatthew LawranceMLC
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