The ranks of the wealthy dropped last year for the first time in seven years, led by a $1 trillion asset drop in Asia.

Equity market correction was the major factor for wealth loss in 2018, which witnessed a $2 trillion decline in overall high net worth wealth, alongside a 0.3 percent decrease in the rich population. Asia headlined this year’s decline with the region representing $1 trillion, or 5 percent, of wealth loss, led by China at 25 percent.

In contrast, Middle East was one of the bright spots for the rich in 2018. The region posted a 6 percent and 4 percent increase in population and wealth, respectively. 

Ultra-Wealthy Hit

The ultra-high net worth – or those with $50 million or more – were hit the hardest in 2018, with the segment accounting for 75 percent of the total wealth loss.

The super-rich posted a 4 and 6 percent decline in population and wealth, respectively. It was followed by the «mid-tier millionaires» segment (net worth: $5 million to 30 million) which made up 20 percent of wealth loss. 

The «millionaire-next-door» segment was virtually unaffected, posting a less than 0.5 percent dip in wealth.

Unhappy with Digital

Despite the wealth decline, trust and satisfaction with wealth managers increased 3 percentage points but the rich remain demanding with «unsatisfactory service experience» cited as the biggest reason to switch firms in 2018, particular regarding on technology.

Less than 50 percent of wealthy clients were satisfied with their current mobile and online platforms, with 85 percent demanding more digital interaction when accessing portfolio information.

Irked at Pricing

In addition, pricing was also highlighted with only 62 percent of rich clients claiming to be comfortable with fees charged by their primary wealth manager.

«[F]uture success will depend on the agility of wealth management firms to evolve the client experience and find new ways to add value through more personalized services,» said Anirban Bose, CEO of Capgemini’s financial services.

«Next-gen technology and closing expectation gaps will aid this, but the landscape is shifting so quickly that companies must not be afraid to overhaul their strategy and business models if needed.»