Banks must ditch one-size-fits-all as HNW and affluent clients diverge

HNWIs prefer in-person changes, whilst affluent clients favor self-service channels.

Banks should say goodbye to the one-size-fits-all approach in wealth management, as wealthy and affluent clients’ preferences diverge, McKinsey & Company found.

“Affluent respondents want simplified, digitally enabled solutions and cost transparency. The HNWI segment, on the other hand, wants a bespoke, high-frequency, and multichannel advisory,” McKinsey said.

Whereas high net worth individuals (HNWIs) hold an average of 55% of their financial assets in managed products, affluent customers only hold 37% of their assets in the same place, the management consulting firm found in a poll of 5,500 Europe-based clients between March and April 2026.

HNWIs prefer to seek financial advice over once a month and prefer making in-person changes, McKinsey found. Affluent clients, meanwhile, favor online self-service channels for updating their investment portfolios.

HNWIs are more comfortable making financial decisions, with 83% of HNWI respondents indicating such compared to 64% of affluent clients.

An earlier report by Cerulli found that UHNW-focused advisory firms are more likely to offer a catch-all category to meet the uber-rich’s non-traditional financial services demands.

HNWIs prefer to seek financial advice over once a month and prefer making in-person changes, McKinsey found. Affluent clients, meanwhile, favor online self-service channels for updating their investment portfolios.

HNWIs are more comfortable making financial decisions, with 83% of HNWI respondents indicating such compared to 64% of affluent clients.

Asian banks, particularly Singapore's Big Three, have touted wealth management as a key growth strategy. For example, United Overseas Bank (UOB) aims to increase the proportion of its invested assets under management (AUM) to 50% through initiatives such as expanding its base of relationship managers and enhancing its digital wealth platform, UOB Kay Hian said in an earlier report.

McKinsey defines HNWIs are clients with total financial assets of over EUR2m; private clients hold between EUR500,000 to EUR2m in assets; and affluent clients are respondents with total financial assets of between EUR50,000 to EUR500,000.

Advisory quality and skills are coming at the forefront of wealth management, with the wealthy seeking advisors who can manage uncertainty and life changes over better portfolios.