A recent study conducted by Cisco Internet Business Solutions Group (IBSG) uncovers a seemingly hidden opportunity for finance services firms and telecommunication companies. Covering some 1,000 wealthy U.S. investors– those with at least $500,000 in investable assets — the research reveals an opportunity as huge as $18.6 billion, provided that financial services adapts a competitive approach to the wealthy under-50s demographic.

Sixty-three percent of this group are willing to migrate their assets to a firm that provides better capabilities such as high-definition video meetings in the office, as well as additional technology-enabled capabilities including home-based video (web-cam and high-definition video conferencing), tablet PC, and video messaging. This speak of $2.2 trillion worth of assets “in play” in North America alone.

The wealthy under-50 demographic comprises 29% of total wealthy investors in the U.S., and this group will become even more important when wealth is transferred from older generations. They are also likely to shift financial advisers than the old ones, provided with good advice, greater access to expertise, and more options for interaction. They are willing to move to a firm that can better offer the services they’re looking for.

-67 percent of wealthy Under-50s expect to receive a substantial gift or inheritance in the next 10 years.
-27 percent have switched advisers in the past two years (vs. 10 percent for older clients).
-32 percent are likely to switch financial advisers in the next year.
-38 percent of wealthy Under-50s with a financial advisor interact daily or weekly to discuss investments, compared with 7 percent of older clients.
-39 percent of wealthy Under-50s spend at least eight hours per month managing their investments.

Also, the wealthy investors still under-50 are more drawn to the technology sector, and are more comfortable with related products. They are likely to buy more convenient ways to interact beyond the traditional in-person meetings, phones and e-mail. Below are the highlights of technological needs of this particular group:

-63 percent are interested in having access to professionals via two-way high-definition video rooms.
-63 percent would consider moving assets to another firm to access two-way high-definition video to meet with multiple experts. The willingness of wealthy under-50s to move assets to access technology-enabled capabilities translates into a $18.6 billion revenue opportunity for North American financial services firms. When older investors are included, the figure jumps to $28.6 billion.
-52 percent would like to receive video messages relevant to their investments on their PC or mobile device.
-55 percent are interested in using a tablet PC to interact with their financial advisor or firm.
66 percent are interested in joining social investor communities.
-55 percent have used social networks for investment advice

Considering the anticipation of wealth transfer to the under-50 demographic from older generations,  as well as their interest in technology, high definition video and collaboration tools are critical for financial firms to sway investors to their services and get a chunk of these investors assets.

Telecommunications can really empower financial industries to attract a specialized demographic of customers, specifically those with high net worth. The finance industry already uses several cloud services, so finding more ways to layer in telecommunications is a client-facing service that could improve business relations all around.

It’s not surprising that Cisco’s cited this is one of the many ways in which the cloud is providing better client relations, trickling its benefits down to a consumer level.  It’s got plenty of products to promote for such services, including the cloud-based TV platform, Videoscape which, aside from its current offerings, will soon release 2 additional virtual desktops with advanced videoconferencing capabilities. Others are getting more involved in this market as well; there’s Skype’s initiatives, which now offers group video calling for individual and enterprise subscribers.