Wealth Management: Definition, Type, Wealth Management Strategy

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Wealth Management: Definition, Type, Wealth Management Strategy

Wealth Management Definition Type Wealth Management Strategy

Basically, management of the harmony or wealth management is a family financial management. We certainly heard of Kisa Michael Jackson who had to sell his house to meet his life needs, or Laela Sari who had to work in his old age to support his entire family.

In fact, both are very famous in the entertainment world since they were young. Then, everywhere they have received money. This will not happen if they are able to apply the Wealth Management in his life.

What is Wealth Management?

Reporting from the Wikipedia page, Wealth Management is “Is An Advanced Investment Advisory That Specialist in Financial Services and Financial Planning”. Or if we are freely translated into Indonesian is investment advisory services in the financial sector and also financial planning.

So, as we have ever explained, that Wealth Management is a family financial management. This is certainly very difficult for each individual. However, to do so financial arrangements themselves completely with various aspects of consideration, ranging from opportunities and possible risks, it is not easy to do.

For this reason, most people generally need financial managers who already have sufficient knowledge related to various types of financial investments that are already available.

In addition, you must also understand how a global economic development that is likely to have an impact on investment instruments and other factors that are able to provide an impact on the value of your wealth.

Well, in the end, Wealth Management also developed into the Financial Planner service business. So that the meaning of the Wealth Management also develops. From which at first only the management of wealth value is done individually, becoming a financial management carried out by an institution or body.

For this reason, the current main understanding of the Wealth Management is a financial and wealth management service that is not only focused on investment, but also takes care of various matters relating to personal finance. So, simply wealth management is a personal finance manager.

This management will help each client in achieving its financial goals. Because if a client does wealth management services from a body or institution, you will be asked to fill out the question form related to financial planning.

This information must be declared honestly, such as the number of assets currently owned, the amount of debt, wife, child, income, insurance, risk profiles, expenses, goals, and other things must be declared honestly.

When was the birth of Wealth Management?

The term Wealth Management began to be widely used in early 2000s. However, the actual presence has been more previously before that year.

For example, in big cities like London, Paris, and Amsterdam, holistic financial management activities have been known since the 17th century and the 1st century. These developments are certainly inseparable from the financial center that occurred at that time.

In addition, the Private Banker also provides various financial services for each family member who wants to trade internationally.

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Some of the types of financial services they do are storage of deposits, providing loans and also providing foreign currencies. This activity was carried out only to provide overall financial services to each member of the kingdom.

After being famous in London, the service also moved to the United States in the 19th and 20th centuries with the Wall Street landmark there.

Types of wealth management services

Wealth Management is very closely with the nuances of service services for the upper community that has a thick bag. Even so, Wealth Management is not just about investment too, but there are also other services that are able to provide live comfort.

Because Wealth Management often provides all the services needed by those who have a lot, then arising from the issue of what you ask me there (Palugada) as a shape of a plesetan of the Wealth Management.

So, in fact they are able to provide services in traditional ulcers to sophisticated, from financial affairs to lifestyle, as well as from business affairs to spiritual affairs.

Wealth management service provider

Generally, this service is offered by the banking. Some other parties who helped provide services are Asset Management, Insurance, Private Banking, Brokerage, Investment Banking, Independent Financial Advisor and even the Accountant Office.

Each of these banks has their respective service services, such as ABC Amro Indonesia with Van Gogh Preferred Banking which is specifically a lot of people with a minimum deposit balance of $ 500 million. Then Bank Syariah Mandiri which has BSM Priority with a minimum balance of $ 250 million.

Even if there are institutions that claim to have this service service, but only focus on offering insurance products or deposit products only, or only offer mutual fund products, so we can make sure they are not providers of compatible wealth management services

Financial or banking institutions that have a comprehensive wealth management program are in which have complete services, such as investments in financial or non-financial products.

They will also provide advice related to real investment types such as prospective business, home, gold, etc. In fact, they are not fanatical on their own products, because they will also open with other institutions that are more suitable for the condition of their clients.

Well, before choosing banking or financial institutions in which wealth management is provided, then you must be able to pay attention to the following.

  • Visit the bank directly or financial institutions that offer these services. Ask the whole service they can give.
  • Pay attention to anyone in front of you when visiting the institution or bank provider whether what is entrusted is a person who is competent or not. Big name is not a guarantee that you can get people who are competent and have extensive experience.
  • Ask how many costs you have to spend when using the service. Then, calculate the costs you have to spend and benefit what you can get.

Wealth Management Business Structure

Wealth Management or wealth management can work as part of a large business or small business related to the financial industry.

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Wealth management can also function under different positions, including financial consultants or financial advisors, depending on the field of business. Clients will be able to accept every service from a single consultant that has been shown or has access to members of the Wealth Management team.

Wealth Management Strategy

Wealth Management will begin by conducting a plan development strategy and also maintains and increases the value of client’s wealth based on financial conditions, objectives, and also the level of comfort of the client.

If the initial plan has been developed, then the manager will be able to hold a regular meeting with the client or to renew the objectives, review, and also re-balance the financial portfolio and also conduct an investigation whether it requires additional services or not.

Their final goal is certainly to provide financial services for clients during their lifetime.

Why are Indonesian people not familiar with Wealth Management products?

In Indonesia, the Wealth Management business is increasingly growing along with the increasing middle class population in a few years ago.

But in reality, the development is still far from what is expected. The problem is, there are still many Indonesian people who don’t know right about wealth management products.

The development of clients in wealth management also cannot be said much. One of the biggest reasons is because socialization related to wealth management services is still lacking. In fact, the OJK itself has conducted this socialization every day.

As previously delivered by Vera Margaret -Wealth Management and Insurance Product Head of PT Bank CIMB Niaga Tbk, the Indonesian people are still very familiar with savings or deposits only, because they are claimed to be safer and definitely.

Even though in reality, the courage is needed to risk and also hope to get a higher profit.

Again, the potential of the Wealth Management business in Indonesia itself is still very large and wide open. But the knowledge of people related to this service is still very small. There is a need for socialization and service approach to a better and enhanced community so that the Indonesian people are not left behind in utilizing this Wealth Management product.


So, Wealth Management is an investment advisory service in the field of finance and financial planning. Actually, this service is not only intended for rich people. Those who are in the middle can also need this service so that the economic conditions can increase.

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