According to a recent study conducted by EY, an international wealth consultant, an increasing number of wealth managers are showing interests in hiring someone who could provide them with financial advice because of their ever-changing needs. It was revealed that they pick out at least five providers while one in every three admitted to have switched their managers in the last three years alone. Nowadays, there is a modern method which is getting financial advice online because the process is more convenient and affordable.
The report was entitled 2019 Global Wealth Research which revealed that around 33 per cent of participants are planning to switch their financial advisors in three years time. This is mainly due to the fact that not one provider is able to meet the requirement of the clients.
The same study states that the industry is trying to compete with the new comers in the industry, not to mention the presence of new technologies. They expectations of the clients are also changing thereby forcing wealth managers to move back a little to see what else they can offer and create a new definition giving financial advice.
Clients are now turning towards more personalized services which can be fulfilled by financial tech companies and independent advisors. The survey was conducted among 2,000 participants who are all clients of wealth management companies coming from 26 different nations while 50 of them are industry executives.
An increasing number, around 18 per cent, will also turn to independent advisors within three years. This will mirror the attraction of the clients who are open for flexible solutions along with appropriate fees.
Thirty-eight of the participants said that they are planning to employ financial technology and the number could reach 45 per cent. Though there is an increasing number voicing their desire to have digital solutions such as being able to get and pay for financial advice online, many participants said that they still prefer human interaction. The remaining 25 per cent said they want meetings or even phone calls as their main channel between client and financial advisors.