Customized services is one of many wealth management terms that are highly subjective without recognized industry standards. It typically refers to individualizing or personalizing services in contrast to using off-the-shelf standard services offered to all clients by an advisory firm. Although standardizing services may have benefits of efficiency, scale, and uniform delivery by multiple staff, “customizing services” gives the appearance of being more client-centered and bespoke.  This appeals to HNW and UHNW clients wanting individualized attention, products, and services. The reality or the appearance of customizing services may allow the advisory firm to charge higher fees to the client. However, true customization for a client with highly complex needs or demands without a corresponding fee increase may strain a firm’s resources and profit margins.

The basis for customizing services may include any of the following: client type, psychology, family constellation or size, culture, risk tolerance, need or desire for particular services, reporting requirement or wishes, complexity of accounts, location, asset size, and other factors.