SAN JOSE, CA -- (Marketwire) -- 12/06/12 -- In the news release, "Cisco Wealth Management Study Reveals $31 Billion Revenue Opportunity With Younger, Tech-Savvy Investors," issued earlier today by Cisco (NASDAQ: CSCO), we are advised by the company that the second quote in the Supporting Quotes section should be attributed to Peter Dalton rather than Jim Schuman as originally issued. Complete corrected text follows.
Cisco Wealth Management Study Reveals $31 Billion Revenue Opportunity With Younger, Tech-Savvy Investors
Wealth Management Survey Reveals Financial Firms Can Avoid Significant Wealth Attrition by Courting Younger Investors With Preferred Technology and Services
SAN JOSE, CA -- December 06, 2012 -- As financial services companies look to increase revenues by winning over more investors, Cisco (NASDAQ: CSCO) today announced findings from a study that highlights wealthy investors' attitudes on how they engage with their financial advisers. The second annual Cisco Internet Business Solutions Group (IBSG) Wealth Management Study also reveals a $31 billion revenue opportunity with wealthy investors aged 55 or younger. The study suggests that financial firms can dramatically enhance their revenues and retain wealth in their portfolio by offering more personalized financial services, more frequent interactions via high-quality video conversations and more collaborative technologies that are attractive to these younger investors.
Wealthy investors aged 55 and younger already represent approximately 40 percent of global investable assets, and this share will increase as they age and as they inherit assets from older generations during the next 10 years. The survey shows a significant generational gap: 20 percent of these younger investors plan to change their primary adviser during the next year, whereas only 5 percent of older investors are planning to change. To win over these younger, more tech-savvy investors, the study suggests that financial firms need to offer more frequent interaction with advisers and a higher-quality customer experience. Financial firms can meet this requirement and build trust and loyalty with these investors by engaging with clients through videoconferencing and social media. In fact, 57 percent of these wealthy investors under age 55 would consider moving a portion of their assets to firms that offer a video as a way to connect with their advisers and other experts.
Highlights and Key Facts:
For the Wealth Management Study, Cisco IBSG interviewed more than 1,200 wealthy investors in the United States, United Kingdom and Germany with at least $500,000 in investable assets. It revealed their attitudes about investing; their relationships with financial advisers; and how they prefer to interact with advisers and wealth management firms. Below are highlights from the research.
Market Landscape for Winning Over Wealthy Investors
Financial Firms Challenged to Build Trusting Relationship with Clients
Technology, Especially Social Media and Video, Offer Gateway for Courting Wealthy Investors
Investors under age 55 desire increased frequency of interaction and a higher-quality customer experience using collaboration and video technology, which can help build trust with financial advisers.
For more information about the Cisco IBSG wealth management survey, please visit www.cisco.com/go/ibsg/financialservices. Cisco and its partners offer services and solutions for financial analysts and wealth managers, including the Cisco® Remote Expert Smart Solution. This high-definition video solution helps financial firms offer virtual face-to-face meetings between customers and wealth management advisers to maximize the efficiency and productivity of wealth management advisers and provide more frequent and personalized customer service that are desired by younger investors.
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