The Key to the World of HNIs-HNI Database
Any person who has more money has to take more pains to maintain and preserve their assets! Persons with high liquidity in the form of cash or cash equivalents are in high demand and targeted mainly by private wealth managers. If you are a financial institute or a wealth manager, it is more profitable to target the High Net-worth Individuals or the affluent segment when compared to the traditional mass banking market.
Who is a High Net-worth Individual?
An Individual having highly liquid assets is referred to as a High Net-worth Individual. In short, they are also called by the term HNI. Simply put, a High Net-worth Individual is a rich person having around $1 million in liquid assets. However, in India, an individual with an investible capital of around INR 2 crores is bracketed in the HNI category. And, those with an investible surplus of INR 25 lakhs to INR 2 crores come under the emerging HNI bracket.
High Net-worth Individual Categories
It is quite a tricky proposition to classify the High Net-worth Individuals. If you look at them from their money management point of view, you should take note of their income source – they usually vary in terms of their financial background, or risk-taking ability, and investment objectives. As the number of Hnis in India keeps increasing, they can be broadly categorized into two types – Self-Made HNIs and Inheritance-related HNIs.
Those HNIs who come from different walks of life and have amassed huge monies via exorbitant salaries, bonuses, ESOPs, or stock options are referred to as Self-made HNIs. Also coming under this category are those HNIs who have created a big wealth by starting their own businesses or enterprises. Coming to the Inheritance-related HNIs, they are those individuals who have inherited big wealth or businesses.
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Institutes that Target HNIs
The term “High Net-worth Individual” is highly popular in the world of private wealth management which involves in managing assets of private entities, including HNIs. Private wealth management functions majorly include portfolio management, estate planning, assets protection, equity and commodity, and tax management.
Financial institutes like investment banks or independent financial advisors or specific funds manage capital contributed by the HNIs who are looking out for opportunities to generate returns on their investment by taking a calculated risk.
Is Digital Marketing to HNIs Difficult?
The general perception of High Net-worth Individuals is that they do not engage actively in social media, or they do not take a keen interest in online purchases. Further, there’s this perception that HNIs indulge only at super-exclusive social sites, or in private members clubs. Well, this is not entirely the truth! Have you ever wondered as to what exactly high net worth clients want or what exactly are their needs? As per a study carried out by PwC it was found that 98% of HNIs accessed the internet daily. The world’s wealthy today are more comfortable in the online concepts and expect more on the digital functionality front. Estate planning assistance and customized wealth management solutions are what the HNIs most yearn for, and that’s their primary need.
A large number of businesses have ignored leveraging their digital marketing strategies for High Net-worth Individuals as they continue to believe that this segment is made of a smaller number of individuals. But, the real fact is that digital marketing provides better value for money than traditional marketing methods for the ever-increasing HNI numbers. With a guaranteed higher ROI, it is a lot easier to track digital campaigns. This only means that digital marketing is a great way for you to put across your word without incurring huge expenses.
Online Marketing to HNIs – An Opportunity
HNIs use the internet pretty much the same way as most other people do. On average, affluent consumers spend nearly three hours surfing the internet every day with the likelihood of most spending more time in making business connections on LinkedIn! And, as per the survey done by Accenture Consulting, 41% of the wealthy investors were found to be early adopters in technology.
Now that it’s proven the HNIs are more skilled, experienced, and more inclined towards using the latest internet technology than the average user, it becomes all the more necessary for financial institutes to tap the ever-increasing herd of HNIs – digitally! Are you an investment banker or an independent financial advisor or an online stock broker looking to target High Net-worth Individuals? Do you have an idea about how to find HNI clients? Well, your answer lies in leveraging your digital marketing efforts. And, to leverage your digital marketing campaigns, having a robust database is half the job done! To put it more precisely, as a financial institute desiring to tap the high net-worth individuals, you need an HNI database to maximize your digital marketing efforts.
Over the next five years, as per a survey by IIFL Wealth Management and the UK-based Wealth-X, the number of wealthy Indians and their affluence is expected to rise by 88%. And it’s heartwarming to note, especially for the various financial institutes, that more than 45% of the existing HNIs wish to increase their allocation to investment funds, equities, and alternate investment funds.
Acquiring High Net-worth Individuals
Any financial institution that plans to target and tap the high net-worth individuals, it all begins with identifying and prospecting for such individuals. The steps involved in the process of acquiring HNIs include identification, positioning value-adds, solution preparation, and finally negotiating the deal.
Identification
How to identify high net-worth individuals is upper-most on any financial institute’s mind that wishes to rope in an HNI with their investments. Referrals play a great role in acquiring HNIs. You may get their details either finds from your existing client database or from strategic partnerships. And a safe way could be to ask your existing clients for introductions to new potential clients.
Positioning Value-adds
On getting a referral, the financial business needs to tell the prospects a good story. In other words, you should convincingly position your value-adds! By telling your prospects why they should work with you, or what difference you can make to them by introducing and highlighting your services can be a great way. Providing personalized services online can further help in building your relationship going forward.
Solution Preparation and Deal Negotiation
Once you have understood the priorities of the prospective HNI prepare your customized potential solutions. Tell them about your partners, and the experts to whom you have access to. It could be a good idea to introduce your analysts from your management and research team to provide product knowledge and related solutions it offers. Finally, when it comes to negotiating the deal, it’s going to be more value-based than price-sensitive!
Arm Yourself with the Most Reliable HNI Databases
HNI Database is a compilation of high net-worth individuals giving information about their specialization, email ids, phone numbers, visiting hours, etc. Every Banker, Insurance Company, Wealth Management Company, and other Financial Institutes have HNIs as their customers – and that form their HNI database which is built over some time. But there is always scope to increase your reach further to the ever-increasing number of HNIs or affluent segments.
There are chances that you may fall short in your strategy for prospecting high-net-worth clients due to a lack of a full-fledged relevant HNI database. If you are looking for a quick solution to tap high net-worth individuals, there is no way you can obtain data from any of the financial institutes who are your competitors – that would be unethical. A safer bet for you is to approach a reliable data provider.
Best Data Providers Company that is into the latest trends of digital marketing has the requisite expertise in providing you the most reliable and verified HNI databases consisting of segmented email lists and contact phone numbers customized to your business needs. With our on-time delivery assurance, you can breathe easy with the quality of our data.
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