Study shows key generational preferences
A new study highlights one key thing that clients want from their financial advisors – choice.
Consulting firm Simon-Kucher and Partners surveyed more than 1,000 adults in the US, mostly in the 25-54 age bracket (Millennials and Gen X) with around a third from over 55s (Boomers and Silent Generation).
It found that wealth management clients want to be in control of the advice that they receive from their advisors. That means tailored financial planning, choosing when they meet with advisors, how they interact and the level of detail in reports.
“In a world where clients increasingly expect and demand choice, the wealth management profession alarmingly extends only one proposition priced as a percentage of assets under management (AUM),” said Matthew Jackson, director at Simon-Kucher & Partners. “We must build propositions that reflect the variegated needs and preferences of clients, and this means offering choices within a given offering – not just between our offering and the next-cheapest competitor.”
Battling the robots
The report shows that financial advisors can take on the threat from Robo-Advisors but this means being flexible enough to meet the demands of an increasingly young and tech-savvy investor.
It will require advisors to be willing to meet with clients whenever they need to (59% said so) and to offer pay-as-you-go or fixed price fees (50%).
The survey also found that an overwhelming 83% of respondents said that they value financial planning services equal to or more than investment management services.
And when it comes to communicating with clients, 39% prefer face-to-face, 29% want you to use email and just 23% want to talk on the phone.
Consulting firm Simon-Kucher and Partners surveyed more than 1,000 adults in the US, mostly in the 25-54 age bracket (Millennials and Gen X) with around a third from over 55s (Boomers and Silent Generation).
It found that wealth management clients want to be in control of the advice that they receive from their advisors. That means tailored financial planning, choosing when they meet with advisors, how they interact and the level of detail in reports.
“In a world where clients increasingly expect and demand choice, the wealth management profession alarmingly extends only one proposition priced as a percentage of assets under management (AUM),” said Matthew Jackson, director at Simon-Kucher & Partners. “We must build propositions that reflect the variegated needs and preferences of clients, and this means offering choices within a given offering – not just between our offering and the next-cheapest competitor.”
Battling the robots
The report shows that financial advisors can take on the threat from Robo-Advisors but this means being flexible enough to meet the demands of an increasingly young and tech-savvy investor.
It will require advisors to be willing to meet with clients whenever they need to (59% said so) and to offer pay-as-you-go or fixed price fees (50%).
The survey also found that an overwhelming 83% of respondents said that they value financial planning services equal to or more than investment management services.
And when it comes to communicating with clients, 39% prefer face-to-face, 29% want you to use email and just 23% want to talk on the phone.
