Outline how private banks and wealth management firms segment their Essay

Outline how private banks and wealth management firms segment their clients and outline the new approaches to client segmentation - Essay Example Attempts at segmenting the large number of clientele for institutions like Banks are bound to be laborious and costly. However, the rewards for such efforts are attractive enough to justify these efforts. Very often the segmentation exercises would throw up results that may be surprising and upsetting to the previous assumptions, (Maude, 2006). Segmentation, like a mirror, will show that the actual cost of servicing the highly valuable customers is far less in comparison to the rewards generated, and it will also show the behavioral patterns of those customers, which, in turn, will help to plan and implement balancing strategies that can optimize the results. The recent Global Financial Crisis has brought in its wake a few upheavals in the Banking and Financial Service Industries. The most significant of these is a total re-thinking on Customer service, particularly in the sector of Asset/Wealth Management Advice, where European Banks were, till recently, enjoying an advantage, (Reinartz, Krafft, and Hoyer, 2004). The entry of several new Financial Services Companies into this sector has caused the re-thinking on strategies even though the actual number of Asset Management Clients has expanded recently. In the competition for customers, the existing Client Segmentation has been side stepped and the admission threshold for Asser Management Service has been lowered. The emergence of new High Net Worth Individuals all across Asia and Latin America has added to the stress. The burgeoning new clientele has spurred the creation of many new innovative investment products and services targeting them. European Banks, reluctant to lose the strategic advantage they had enjoyed in the sector, are gearing up to face the competition from new entrants, including Retail Bankers and International Providers, (Landberg, 2001). Consolidation of some European Banks is a distinct possibility in the prevailing conditions. Small Boutique Banks with limited number of High Net

Writing Assignment # 1 Essay Example | Topics and Well Written Essays - 750 words

Writing Assignment # 1 - Essay Example question the article is trying to resolve is; â€Å"What are the issues and trends that HR professionals expect to have the most impact on shaping the field of human resource management in the next few years and the solutions HR professionals are using to prepare to respond to these trends?† (SHRM, 2013, P. 64). The most important information is the top ten trends that have been recurrent over the years. These serve as a starting point to acknowledge the challenges HR professionals are bound to encounter now and in the future hence be able to come up with measures to cope with challenges. The key trends that continue posing challenge to HRM include: High cost of healthcare, competitive global environment, complex legal environment and changes to laws, aging workforce and retirement of Baby Boomers, lack of skilled workers, economic uncertainty and volatility, and greater demand for work/life balance (SHRM, 2013, p. 4). Due to these trends, HR executives will face many challenges in future including retaining and rewarding best employees, succession planning, creating a corporate culture that attracts potential recruits, maintaining competitive edge in talent market as well as finding people with specialized skills (SHRM, 2013, P. 7). Myrtle (2015, p. 26) asserts that in some regions, over 60 percent of organizations face difficulties hiring workers with critical skills. In response to these trends, HR professionals are taking various actions. One of the actions being taken is recruiting, retaining and developing employees to bridge the skill gap. They are also embracing technology such as e-learning, use social networking sites for myriad of purposes such as recruitment, and ttechnology-based employee and manager self-service applications (p. 6). Legal compliance is also top on the agenda. The author divides the trends into four groups: demographics and society, economics and employment, science and technology, public policy and law. This is supported by Myrtle