For asset managers, easy experience is key to winning advisors' businesses

For asset managers, easy experience is key to winning advisors' businesses
Beyond returns, asset managers have to elevate their relationship with digital applications and a multichannel strategy, says JD Power.
OCT 31, 2024

While digital accessibility and returns are crucial for asset managers seeking financial advisors' businesses, it'll take more to maintain those relationships business, according to the latest research from JD Power.

In its 2024 US Advisor Online Experience Study, JD Power found advisors prize the “ease of doing business," second only to investment returns, when it comes selecting asset management partners.

"Returns will always be important,” Craig Martin, executive managing director of wealth intelligence at JD Power, said in a statement. “But when enhancing brand perceptions... ease of doing business and seamless interaction between digital and traditional channels is the key."

That shift in priorities could prove crucial as advisors become increasingly jealous with their relationships. From JD Power's vantage point, Martin says advisors are now working with an average of seven firms, down from eight over the previous years.

JD Power's U.S. Advisor Online Experience Study drew from a poll of more than 2,000 advisors, benchmarking their satisfaction on 18 asset managers including BlackRock, Vanguard, Fidelity, State Street, and Schwab.

Among all advisors in the study, nearly two-fifths (37 percent) identified ease of doing business as a primary factor. That perception is shaped to a degree by their digital experience, JD Power said: just 18 percent of advisors who reported a poor digital experience said ease of doing business was a primary reason for selecting their asset managers, compared to 26 percent of those with an excellent digital experience.

And despite the increased focus on digital in recent years, the research confirmed it pays to have more arrow in the quiver of communication strategies. Less than 7 percent of advisors say they prefer to have a single channel to engage with their asset manager partners, while a majority use a multichannel mix that includes digital platforms (56 percent), email (70 percent), phone or video calls (73 percent), and in-person meetings (55 percent).

“As advisors consolidate their asset manager relationships, they are increasingly investing with those who make it easiest for them to do so,” Martin said.

Asset managers looking to boost their digital engagement efforts with advisors may also want to ask whether their wholesalers are doing their part. While expectations for wholesalers have traditionally revolved around their product expertise – which is certainly an asset for alternative investment education – 37 percent of advisors report that they receive no assistance from wholesalers on using digital tools, leading to lower satisfaction on the digital front. 

Latest News

SEC Says Game Service Roblox Part of ‘Active Investigation’
SEC Says Game Service Roblox Part of ‘Active Investigation’

Short sellers previously said the company was under investigation, though Roblox denied allegations.

Musk’s DOGE descends on CFPB with intention to shut it down
Musk’s DOGE descends on CFPB with intention to shut it down

The Consumer Financial Protection Bureau is in the crosshairs of the Republican group that is widely attempting to dismantle government agencies.

Advisor fighting Finra banishment loses $17.7 million dispute with old firm
Advisor fighting Finra banishment loses $17.7 million dispute with old firm

National Securities Corp. sued the advisor in 2020, alleging breach of contract and unjust enrichment.

Job numbers, inflation leaving room for Fed to hold rates
Job numbers, inflation leaving room for Fed to hold rates

Recent data support a measured pace by the Federal Reserve for the year ahead.

Private assets remain hot despite surging stock market
Private assets remain hot despite surging stock market

Financial advisors are still adding alternatives despite the surge in publicly traded stock prices

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.

SPONSORED Why wealth advisors should care about the future of federal tax policy

Blue Vault features expert strategies to harness for maximum client advantage.