While the majority of affluent advice seekers may prefer working with a single financial services provider for all their wealth needs, they're still open to exploring other options.
That's according to a new Cerulli report, titled U.S. Retail Investor Advice Relationships 2024, which found that 82 percent of well-heeled individuals seeking advice gravitate toward one provider, but aren't necessarily willing to pin their financial hopes on just one firm.
In a textbook display of inertia at work, 93 percent of advice seekers said they would consult their existing advisor before adding new products or services, though 41 percent said they'd consider moving at least some their assets to another provider within the next year. And while advice seekers may be overwhelmingly satisfied with their financial advisor, that doesn't mean those relationships will stay sticky.
"Despite high overall satisfaction levels—92 percent of Advice Seekers believe their financial advisor can solve their financial needs—this cohort is not yet committed,” Scott Smith, a director at Cerulli, said in a statement.
The report indicates that advice seekers, representing 17 percent of affluent investors, have an average relationship span of eight years with their providers. However, nearly half (46 percent) of these relationships are relatively new, lasting less than five years, though that's still 11 percentage points higher than other investor segments.
At least part of that movement could boil down to clients' evolving preferences and needs. According to Cerulli's research, 75 percent of advice seekers agree they need more advice compared to the past. Across all segments, they were also the most willing to pay for advice, and showed a preference for high advisor engagement.
For firms, Cerulli says the key to keeping advice seekers's business make sure their trusted advisors are armed with resources to showcase the quality of their offerings. And while there may not be a perfect in-house answer for every need, those that help clients take stock and recommend the best-fit solutions, whether proprietary or external, will benefit from having greater credibility.
“To retain these clients, advisors will need to dedicate themselves to understanding their circumstances and goals and offer solutions every step of the way in order to secure their trust – and assets,” Smith said.
With over 600 clients, the $71 billion RIA acquirer's latest partner marks its second transaction in Oklahoma.
Also, wealth.com enters Commonwealth's tech stack, while Tifin@work deepens an expanded partnership.
Back office workers and support staff are particularly vulnerable when big broker-dealers lay off staff.
The fintech giant is doubling down on its strategy to reach independent advisors through a newly created leadership role.
The two firms are strengthening their presence in California with advisor teams from RBC and Silicon Valley Bank.
How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave
From direct lending to asset-based finance to commercial real estate debt.