New national survey shows that 55% of advisors who manage their clients’ held-away assets say it has increased client satisfaction
The market is shifting from comparisons with an industry benchmark to personal goal-based wealth management. This may help explain why 86% of financial professionals who took our national survey said reporting on all of a clients’ assets is Extremely/Very important, up from 72% in 2010.
Without a full view of a client’s financial portfolio providing effective asset allocation is a bit like trying to assemble a puzzle that is missing pieces and doesn’t have a photo on the box for what you’re trying to build.
About the survey
ByAllAccounts conducted a national survey of financial advisors in September about how they report and bill on held-away assets. The findings presented are based on aggregated responses from more than 280 advisors. Approximately 36% of respondents were RIAs, wealth managers or professionals in bank trust departments.
Another one third worked at a broker-dealer.
We compared the results of this year’s survey with a similar study conducted in 2010 to identify any significant changes. Key findings include:
The importance of reporting on all of a client’s information has grown since 2010.
The use of account aggregation services to report/provide advice on held-away assets have become main stream. One out of every two advisors who report on held-away assets now say they use an account aggregation service.
The majority of advisors still opt not to bill on held-away assets. Compliance concerns and fear of “nickling and diming” clients are key stumbling blocks.
Click here to read an executive summary of the survey results.
Opportunities to Increase Satisfaction and Efficiency
In our Traits of Successful Financial Advisors (June 2013) survey, advisors cited Client Satisfaction as their most important indicator for measuring business success. We defined Highly Successful Advisors as those with Extremely Satisfied Clients.
Tip: Advisors who don’t manage held-away assets are missing an opportunity to increase client satisfaction
Tip: Obtain client authorization to deduct fees on managing held-away assets, from a directly-held account.
For a complete list of prior surveys visit our Online Learning Center.
You may also be interested in:
The Definitive Guide to Billing on Held-Away Accounts (Interactive eBook)
Understand How Investors Choose Advisors (Complimentary Whitepaper)
Choosing the Right Solution for Your Billing Needs (Blog post by Cynthia Stephens, VP of Marketing, ByAllAccounts)