Currently, the group has an investment management team of around 70 staff in eight offices across the UK, which includes an offshore post on the Isle of Man. Total assets under management and administration stand at £3bn.
According to Buchanan, the firm is open to further M&A activity down the line, but he is aware of the ‘Goldilocks effect’ when expanding a business. “I have asked myself repeatedly whether there is an optimum size of a private wealth firm, and I don’t yet know what the answer is,” he says.
“There is certainly too small and there is also probably too big. The bigger the business becomes, the more robotic it becomes. Growing to that size really takes the individuality out of financial planning, becoming more about the process than the client.”
Digital natives
He explains that clients are no longer content with just being paid their dividends, and that customer demands have changed since the start of his career. They are more involved in monitoring the performance of their investments, he says, and expect tip-top advice.
Increasingly, they also care about the relationship between technology and investing. To remain a relevant player in the private wealth space, according to Buchanan, you need to take stock of changing demographics and consumer behaviour.
“It would be fair to say there is an awful lot of string and Sellotape being used in the industry with regards to technology. The next generation of retirees will already be really tech savvy. They expect to be able to see things on their tablet. They don’t expect it to be quill pens and parchment.
“As a firm operating in the sector, one has to be attuned to that enlightenment and embrace the digital age.”
WH Ireland took its first steps towards embracing all things digital during November last year when it struck a deal with IFA software provider Intelliflo. Its integrated platform allows clients to review investments and receive up-to-the-minute portfolio updates.
