Prepared for Mike B. | Delivered September 13, 2019
Customer Dissatisfaction - Financial/Wealth Advisor
To find out insights on what percent of people in the US are unhappy with their current financial advisor or are looking for a new financial advisor to pitch financial clients like Wells Fargo that Captivate is a good medium to reach people who are looking to change their financial advisors. This can be both general financial advisor (lower-income clients) or wealth advisors (clients who have $250k in investable assets or a proxy of that).
A research study conducted by
in 2015 indicated that "
high- and ultra-high
-net-worth individuals, as well as
less wealthy affluents
with a net worth between
$100,000 and $1 million
switched their financial advisors
at some point in their life.
300 wealth management clients
regarding their expectations and experience with their financial advisor indicated that "most of the clients are
not actively looking to switch
to a new financial advisor".
of clients responded that they are either
) or "
) with their financial advisors and
aren’t planning to leave
. On the other hand,
of respondents said they were
said that they were "unhappy" or "very unhappy" and
planning to switch
further indicated that wealth management clients
their financial advisors for an average duration of
Nevertheless, those who have
switched their advisors
last 10 years
attributed this to "
high fees" (14%)
poor service" (10%)
, and "lack of personalized attention" (
lack of personalized attention
being the top reason to switch financial advisors for
, the situation is different from the US as per the
EY 2019 Global Wealth Research
report which surveyed
wealth management clients in
. This study indicates that worldwide, nearly
of people have switched their financial advisors in the
last three years
, and another
plan to do so in the coming three years.
The report further claims that the
are the most likely to switch their financial advisors with
of "ultra-high net-worth (UHNW)" individuals saying they plan to switch wealth management providers in the
next three years
as compared to
of high-net-worth (HNW) and less than
of mass affluent clients. Baby boomers are
29% less likely
to switch advisors as compared to millennials.
Regional trends in
North American clients
are less likely to switch providers with only
willing to switch providers in the
next three years
as compared to
40% that switched providers
past three years.
While information on the percentage of people in the US that are unhappy with their current financial advisor or are looking for a new financial advisor is limited, there are several
on the reasons that lead to clients firing or switching their financial advisors.
REASONS FOR SWITCHING FINANCIAL/WEALTH ADVISORS
major and most common reasons for clients to switch financial/wealth advisors include:
Lack of attention
(advisors not attending calls, lack of personalized attention, etc.)
Women clients being
than men (
of female clients feel that financial advisors treat them differently).
PROPRIETARY DATABASE SEARCH RESULTS
In addition to this public search, we scanned our proprietary research database of over 1 million sources and were unable to find any specific research reports that address the stated goals.
Your research manager recommends working with a
A Generalist is Industry Agnostic and give you the best value.
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