Global high-net-worth individual (HNWI) numbers and wealth returned to growth in 2023, following the largest decline in a decade in 2022.
However, as global market unpredictability continues, financial institutions that cater to high-net-worth customers are increasingly turning their focus on the most potentially lucrative sub-segment: ultra-high net worth individuals.
Read the latest report from the Card Payments practice to learn how issuers can tailor their dedicated card value propositions to meet the evolving needs of this segment.
The ultra-high net worth segment
Ultra-high net worth individuals (UHNWIs) are widely defined as individuals with a net worth over $30 million.
There has been an upward trend in the number and total wealth of UHNWI globally since 2022:
- >625k - global UHNWI population, representing >4% YoY growth (2023)
- $30 trillion - aggregated UHNWI wealth, representing 4% YoY growth (2023)
Ultra-high net worth customer priorities
Changes in the composition of the segment have also brought about shifts in their priorities and expectations.
Luxury retail brands and travel experiences are top spending categories for UHNWI consumers
- 242% increase in personal and experiential luxury spend by top luxury consumer spending segment1, according to BCG
Investment priorities are shifting from stability to impact
- 1 in 5 UHNW investors allocate 80-100% of their portfolio to sustainable investments, according to Barclays
Embracing alternative assets
- UHNWI allocations to alternative assets rose from 13 to 15% YoY in January 2024, according to Capgemini
Security and discretion remain paramount
- Almost two thirds of UHNWI families and advisors do not communicate positive contributions to society because they prefer to remain discrete, according to Stonehage Fleming
Value-added services are a crucial differentiator
- These include lifestyle advice, concierge services, networking opportunities and legal consultation
Read the full report to uncover the four main ‘personas’ of UHNW clients and the six priority features of dedicated UHNW card value propositions.
