Account consolidation preferred more in theory than in practice

While 49% of affluent clients of financial firms say they would prefer to use a single institution to serve the bulk of their financial needs, just 36% of those expressing such a preference actually use one provider, according to research by Cerulli Associates.

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“While the idea is appealing, the steps needed to get there are not,” said Scott Smith, director of advice relationships at Cerulli. “Creating a path of least resistance is crucial for walletshare growth; providers should explore how they can use technology to complement asset transition specialists to help shepherd investors through this process.”

Cerulli found that the preference for consolidation is strongest among investors under age 30 (66%), before tapering off slightly among older cohorts but stabilizing at approximately 46% for respondents over age 50.

Overall, 27% of affluent respondents indicate that the ease and convenience of doing business is their reason for wanting to centralize assets with one financial provider. To strengthen their client relationships in the future, Cerulli said that financial platform providers will have to develop digital applications that interest clients and prospects, as well as assure that those applications are used frequently and effectively.

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“Cool but unused tools are just expensive ornaments, not value creators. In addition to their normal quality control tests, developers should include extensive product usability demos by testers across age cohorts,” Mr. Smith said.