Why 1 in 3 of the UK’s Wealthiest Residents Don’t Feel Valued by Their Bank

A recent financial wellbeing survey by private and commercial bank, Arbuthnot Latham, has revealed that a significant portion of the UK’s high net worth individuals feel undervalued and under–supported by their banks.  

To bridge the gap between the UK’s wealthiest and their financial providers, Arbuthnot Latham has explored where they feel the biggest gaps lie as well as how to tackle their most pressing concerns. 

Demand for Current Account Switching Services Surge 70% Amidst Rising Dissatisfaction Amongst the UK’s Most Affluent 

Arbuthnot Latham’s study uncovered that the ability to discuss financial wellbeing during significant life events – such as marriage, losing a loved one or having children – is the key reason many of the UK’s most affluent feel undervalued by their financial service providers.   

The table above shows the current state of relationship between the UK’s most affluent, and their current financial services providers based on the results of an independent survey of more than 500 UK residents with a net worth of at least £100,000. 

Lacking expert support and guidance at these crucial times is likely a significant driver behind the 70% increase in demand for Current Account switching services across the UK. 

Kevin Barrett, Managing Director, Private and Commercial Banking says:   

“Ensuring our clients have a platform to openly discuss and seek support for their financial wellbeing during significant life events is paramount to us at Arbuthnot. We understand that life’s transitions can bring about financial complexities and emotional challenges.  

By fostering a space where individuals feel empowered to share their concerns and aspirations, we not only enhance their financial knowledge but this also cultivates trust and long-term relationships. Our experts at Arbuthnot believe that enabling these conversations is not just a service, but a commitment to our clients’ overall financial wellbeing.” 

Unravelling Wealth Worries: Addressing the Top 5 Concerns of the UK’s High Net Worth 

With 1 in 3 of the UK’s most affluent feeling undervalued by their provider and a high proportion interested in switching, it’s important that banks respond quickly to their key stressors. The team of financial experts at Arbuthnot Latham suggest the following solutions to address your client’s concerns and ensure their financial peace of mind:  

The top concern amongst those surveyed (51%), the Arbuthnot experts say “Start planning for retirement early – Begin saving and investing for retirement as soon as possible to build a sufficient nest egg. We would recommend creating a comprehensive retirement plan. This includes assessing your current financial situation, estimate future expenses, and develop a strategy to ensure your desired lifestyle during retirement. 

“Those particularly worried their future finances, perhaps those in jobs where income is not a steady or guaranteed stream, should consider diversifying income sources: Explore options such as pensions, retirement accounts, investments, and annuities to create a steady stream of income in retirement.” 

A top worry for nearly 40% of those surveyed, Arbuthnot Latham’s experts suggest the best plan of action is to “Diversify your investment portfolio – spread investments across different asset classes (stocks, bonds, real estate, etc.) to reduce risk and enhance potential returns. Stay informed and updated: Regularly review and adjust your investment strategy based on changing market conditions, economic trends, and your own financial goals. 

Seeking professional advice is advised. A consultation with a financial advisor to assess your risk tolerance, investment objectives, and create a personalised investment plan can help ease your investment concerns as they will be able to tell you how and why your wealth is being managed the way it is.” 

“Create a will, establish trusts, and designate beneficiaries to ensure your assets are distributed according to your wishes and minimise taxes.  

“Education is also key here. We would recommend teaching beneficiaries about financial responsibility, money management, and the importance of long-term planning before the time comes for your wealth to be passed on. This way, you have given them the knowledge needed. Gifting is also a popular option for those concerned about passing on their inheritance. ” 

“Speaking to a financial advisor will help inform you of the best ways you can utilise tax-efficient investment strategies. Consider the tax consequences of investment decisions, estate planning strategies, and major financial transactions to optimise your tax situation.”