With trillions in assets set to change hands in the coming years, the research indicates that wealth management firms need to rapidly adopt a strategy that blends a focus on affluent clients with the acquisition of younger clients
NEW YORK, June 23, 2023 /PRNewswire-PRWeb/ -- A new report from Arizent, the parent company of Financial Planning, an information resource serving financial advisors and wealth managers, examines how firms are preparing to serve the next generation of clients who are projected to inherit trillions of assets. In the report, the majority of surveyed advisors reveal that new client acquisition is the single greatest growth opportunity; however, they share a range of preparedness in terms of specific strategies to capture the generational wealth transfer.
When asked who they are looking to attract, more than three-quarters of participants name high net-worth (HNW) clients with investable assets from $1 million to less than $30 million as a critical or high priority. More than 40% of advisors also rank ultrahigh net-worth (UHNW) individuals with at least $30 million of investment assets in these two categories. But only one-in-three advisors described "younger investors'' as either a critical or high priority.
"While advisors are focused on – and understand the importance of – new client acquisition, they may be missing an opportunity by not focusing on attracting the new generation of younger investors" " Janet King, Vice President of Arizent Research, says. "Given the coming transfer of wealth, advisors should consider how they will address these new investors, including the technology they may need to reach them."
Technology has increasingly become an integral part of advising, and this trend is very much expected to continue. In terms of what digital solutions are being used today, the top five are CRM (69%), financial planning software (69%), document management software (58%), a client portal provider (53%) and financial planning apps/tools (47%).
Yet, even firms embracing technology tools may not be taking advantage of direct ways to serve younger clients. Respondents report using text messaging (47%), but only about one in ten use robo advisors (11%) and AI chatbots (9%).
You can read more details about the findings by downloading the report here: https://www.financial-planning.com/research-report/capturing-the-next-wave-of-clients
Research Methodology
Arizent conducted an online survey of 394 wealth management professionals at wirehouses, national/regional broker-dealers and registered investment advisory firms in April 2023. Nearly three-in-four respondents hold senior roles, including manager/senior manager, director/senior director, vice president/senior vice president/executive vice president and C-suite/owner/partner. Just more than one in four earn fees only; slightly more than one in two earn both fees and commissions.
For more information on this survey or other Arizent research, contact:
Janet King
Vice President, Research
Arizent
[email protected]
M 207-807-4806
About Arizent
Arizent is a business information company that advances professional communities by providing insights and analysis and convening industry leaders. The company uses deep industry expertise and a data-driven platform to deliver its services, which include subscriptions, marketing services, live events and access to Leaders, an executive forum. Arizent also connects business communities through leading financial services brands like American Banker, The Bond Buyer, Financial Planning and National Mortgage News, as well as professional services brands like Accounting Today, Employee Benefit News and Digital Insurance.
About Financial Planning
Financial Planning empowers financial advisors and wealth managers with essential analysis and insights into the ideas that are shaping their businesses. Through authoritative journalism, events, research and benchmarking, it helps firms drive their businesses and the industry forward, navigating the critical opportunities in practice management, wealthtech, investment strategies, tax and regulatory requirements. With a wealth management community of more than 600K, Financial Planning delivers unique content every day that connects leaders in person, in print and online every day.
Media Contact
Janet King, Arizent, 212-803-8500, janet.king@arizent.com
SOURCE Arizent
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