Library: Accenture – Wealth management: The new state of advice
Executive summary:
A lot can change in a short time. The events over the last year accelerated an industry-wide shift in consumers’ need for financial advice like never before.
At the same time, we’ve witnessed an emerging class of newly engaged investors clustering around specific demands, such as an interest in cryptocurrency and environmental, social and governance (ESG) investing.
These shifts point to unique segments of underserved investors seeking personalised advice across a broad set of financial needs, which creates an opportunity for wealth managers to expand their advice offerings beyond managing investments .We would describe this as the industry’s maturation from hybrid to holistic advice.
Changing customer expectations
The previous consumer-facing publication, focused on how advice is consumed and the wave of innovation that established digitally enabled, client-centric advice delivery.
Today, clients have come to expect a hybrid advice experience that combines digital, virtual and human interaction in a personalised manner under their control.
The question then becomes, as to whether the hybrid experiences available today delivering quality advice when clients need it and are they delivering the right outcome.
Identifying gaps in advice
To better understand the current state of advice, we set out to unpack client needs. Covid-19 sharply brought into focus some of the emerging gaps many wealth managers might have overlooked, altering the type of advice clients require and forcing them to support a fully digital and human service model.
In one of our most comprehensive wealth management surveys, we explored what types of advice clients want; who they trust to deliver it; how and when they want advice; and what they value in their advisor relationship .
Through this effort, we wanted to better understand current and emerging client segments, the type of advice required for each, and how wealth managers could ultimately deliver a holistic and personalised experience at scale.
Opportunities for advisers
A growing client demand for advice proves out, as 52% of respondents in our survey indicated saving and planning increased in importance over the last year and remains a priority for future financial goals, while 45% felt the same about investment and portfolio management .
Interestingly, we found that while many clients are largely satisfied with current advice offerings, 55% feel the advice they receive is too generic and another 55% also believe that they could do a better job investing themselves by making decisions that create better returns net of fees .This indicates that meaningful opportunities for new advice offerings exist.
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