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In this article we explore HNWI Millionaires Next Door in Malta – who are they?

HNWIs Millionaires Next Door

 

HNWIs millionaires next door might be better known just as millionaires. Traditionally, the divide between social classes was much more obvious. There were a number of physical and geographical factors that would identify a millionaire, such as lavish residences in specific neighborhoods, job types, expensive cars, and other luxury items.

In today’s modern times, HNWIs might not be who you expect them to be. In fact, nowadays it is not so easy to pick out a millionaire just from the neighbourhood they live in or the car that they drive for instance. This is where the HNWI millionaire next door comes into the picture.

The phrase ‘Millionaire Next Door’ was popularized in 1998 after a book called ‘The millionaire next door’ by Thomas J. Stanley became a best-selling title. This book highlights surprising features and characteristics of millionaires in the US who might live in less obvious neighbours, next door to working-class families and are less obvious about their wealth.

Beyond the US, broader international research shows that HNWI millionaire next door comprise 0.8% global population, with this segment accounting for 44.8% of the global wealth.

HNWI millionaire next door - pyramid

In 2018, Laskaris commissioned research which was carried out by RSM Malta which concluded that adults in Malta holding financial wealth of over $1 million are on the rise and will increase even further over the next 10 years.

Further to our research we also identified a few personal characteristics of the HNWI millionaire next door, such as: age, marital status, education level, and employment type.

Whilst the sector of employment is varied, some HNWI in Malta are at an executive level in their workplace, while a substantial number are entrepreneurs. Characteristically of HNWIs all around the globe, HNWI’s in Malta also find themselves time poor and value focused.  Beyond personal characteristics, we also identified a few materialistic preferences appreciated by HNWI millionaires next door. One such characteristic is that they are incredibly tech savvy, meaning they are early adopters of technology and seek  to buy the latest tech gadgets. They also travel frequently within Europe and the Americas, typically in business class; and are known to splurge on lifestyle items like higher end cars, boats, watches, gifts and so on.

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Photo by Maxim Ilyahov on Unsplash

In 2017, a report about private banking and trends and expectations of HNWI’s by a leading international bank, revealed that younger HNWIs were keen to see positive social impact derive from their wealth. The report also highlights that while HNWI millionaire next door were highly tech savvy, they expect human contact and bespoke treatment when it comes to banking and investment services. When it comes to technology, data security and privacy were the key factor that they focus on.

Upon licensing, Laskaris seeks to establish itself as one of the first banks in Malta to offer private banking services tailormade to the needs of this growing segment of the population, and to couple such services with ancillary transactional and lending banking services, thus becoming a one stop-shop for the HNWI millionaire next door and beyond.