There have been recent news reports about wealth management firms cutting staff, including positions in wealth management and assets units. While this isn’t necessarily a new phenomenon during economic challenges, other trends in the industry are further impacting the landscape. The buzz of artificial intelligence is touching all aspects of our lives and financial services isn’t immune. Firms are considering how the evolving landscape of technology—robo-advisors, for example—could impact investment decisions in the near future. This context raises the question of how valuable advisors are to affluent investors and, therefore, by extension, to wealth management firms.
Luckily, Cogent Syndicated conducts monthly surveys among affluent investors, asking questions about if and how they use financial advice and financial advisors. As wealth management firms continue to determine whether or when to cut advisor jobs (and/or the positions that support advisors in doing their jobs well), it’s imperative to know the potential impact. We dug into the results from Q2 to uncover how affluent investors view and value their financial advisor relationships.
Here are five key findings that underscore the value of advisors to investors, and, therefore, to wealth management firms.
As wealth management firms consider cutting staff, including positions in wealth management and assets units, to the extent that they may consider cutting advisor head count, they should exercise caution. It’s imperative to carefully consider the potential loss of business as a result of cutting advisors from the payroll. At the same time, should competitors cut advisor positions, firms should consider how they could pick up those advisors along with the new business that would come from the investors who loyally follow those advisors to a new firm.
We’re actively writing our annual Investor Brand Builder report which provides a holistic overview of these and other important trends affecting the affluent investor market and a customized evaluation of your brand health to enhance investor segmentation, improve marketing and communication, identify opportunities to grow market share and boost profitability.
Publishing at the end of this month, Investor Brand Builder gives firms insights that can directly inform brand and marketing strategies that maximize purchase intent among investors and expand client relationships. Click below to learn more.