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.
Financial services compliance consultant ACA Group told InvestmentNews it had four clients report receiving emails that impersonated David Bottom, the SEC's chief information officer, with smaller firms being targeted.
Financial advisor Derek Wittjohann shares the lessons he learned after leaving a major wirehouse to set up his own practice in the second installment of InvestmentNews' new 'Independence Stories' series.
Whether a firm manages $50 million or $5 billion in client assets, building a succession strategy needs to be a priority at least a decade out from retirement.
RIA assets are key for broker-dealers right now.
The former investment advisor misled clients in a decade-long scheme to fund international travel expenses, country club fees, and other personal expenses, according to three government agencies.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
