Opportunities Include Offering Holistic
Advice, A Fee-Based Future, All-In-One WealthTech, And Tackling The
Organic Growth Imperative
BERWYN,
Pa., July 10, 2024 /PRNewswire/ -- Envestnet
(NYSE: ENV), a leading provider of integrated technology, data
intelligence, and wealth solutions, has released its 2024 Advisor
Perspectives Survey, examining the current state of financial
advisory practices and anticipated industry trends. Envestnet
leverages its unique vantage point to conduct the annual survey,
gathering responses from 290 financial advisors. The survey
explores how advisors are planning to grow, scale, and protect
their businesses for the future.
Financial advisors interested in learning more about these
trends and insights are encouraged to download the report here:
go.envestnet.com/Advisor-Perspectives-2024, or to contact
Envestnet's Market Intelligence team to learn how Envestnet can
help them capitalize on these opportunities.
"Despite the industry service model expansion we've seen to
date, advisors surveyed identify holistic advice as the single
largest untapped opportunity in wealth management today," said
Rich Aneser, Chief Strategy
Officer for Envestnet. "The Envestnet strategy is aligned to
this opportunity, driving the growth and productivity of advisors
by providing a comprehensive and capable wealth management
platform– connecting the technology, data, and a broad set of
wealth solutions to serve client workflows and business
models."
5 key findings from this year's report include:
#1 Untapped Opportunity? Holistic Advice. Advisors view
the expansion of service models (e.g., tax, estate, 401(k)
planning) as the most underappreciated opportunity in the industry.
And clients agree: McKinsey found that nearly half of all wealth
clients prefer to work with an investment professional that can
holistically address financial needs across investments, taxes,
banking, and life insurance1.
Fee-Based Advice on the Rise. Advisors affiliated
with brokerage firms anticipate increasing their fee-based asset
mix by 11 percentage points over the next five years. This shift
underscores a growing preference for more transparent compensation
models.
Preference for All-in-One Technology Stacks. Nearly
three times as many advisors favor an all-in-one technology
solution over a DIY approach using point solutions. This preference
highlights the importance of integrated systems in enhancing
operational efficiency and delivering a seamless client
experience.
The Organic Growth Imperative. Time and prospecting are
cited as the primary obstacles to organic growth. Despite 71% of
advisors considering organic growth "very important," the median
advisory firm saw only 2-3% growth in assets excluding market
appreciation. This finding suggests a need for advisors to rethink
strategies around outsourced business functions, digital lead
prospecting and referrals, brand marketing, and automation.
From Talking Point to Focal Point: Next-Gen Investors.
Serving younger investors is moving from a talking point to a focal
point, with 36% of advisors planning to add tools and advice for
this segment within the next two years. Adoption of modern client
portals and mobile apps will be necessary to engage these young,
digitally native clients.
"The survey results indicate a growing recognition amongst
advisors of the importance of attracting and retaining next-gen
investors. We believe serving this cohort is paramount and should
be viewed through the lens of customer lifetime value," said
Chris Shutler, Head of Strategic
Development & Market Intelligence for Envestnet.
"Surprisingly, only a fraction of advisors' open-ended responses
mentioned the untapped potential of data and AI. In our view, this
reflects both an underappreciated opportunity for leveraging
insights as well as the early stage of development for gen-AI use
cases."
The complete 2024 Advisor Perspectives Survey explores
additional areas including:
- Investment Alpha: Still a Focus?
- Maximizing Firm Valuation
- HNW Services Opportunities Abound
- Financial Planning Utilization
- Client Portals, A Growing Emphasis … and more.
"Advisors look to an integrated technology stack to help
simplify workflows and deliver a seamless client experience," said
William Trout, Director, Securities
& Investments at Datos Insights. "At the same time, rising
client expectations and the need to capture next-generation wealth
means advisors are now providing tax, estate, and other planning
support that they would have previously referred to third parties.
Extending the value proposition to these areas via digital tools
empowers advisors and should help alleviate fee pressure."
Survey Methodology
The survey, conducted in early 2024 by Envestnet's Market
Intelligence team, included 290 financial advisors. Compared to the
overall financial advisor population, respondents had a similar
median age, above-average team AUM, and were weighted more heavily
(62%) toward fee-only RIAs.
About Envestnet
Envestnet is helping to lead the
growth of wealth managers and transforming the way financial advice
is delivered through its ecosystem of connected technology,
advanced insights, and comprehensive solutions – backed by
industry-leading service and support. Serving the wealth management
industry for 25 years with more than $6
trillion in platform assets—more than 109,000 advisors, 17
of the 20 largest U.S. banks, 48 of the 50 largest wealth
management and brokerage firms, more than 500 of the largest RIAs
-- thousands of companies, depend on Envestnet technology and
services to help drive business growth and productivity, and better
outcomes for their clients. Data as of 3/31/24.
Envestnet refers to the family of operating subsidiaries of the
public holding company, Envestnet, Inc. (NYSE: ENV). For a deeper
dive into how Envestnet is shaping the future of financial advice,
visit. Stay connected with us for the latest updates and insights
on LinkedIn and X (@ENVintel).
MEDIA CONTACTS:
Amy Norcini
Envestnet
amy.norcini@envestnet.com
Andrew Jennings | JConnelly for Envestnet
envestnetpr@jconnelly.com
1 McKinsey, "US wealth management: Amid market
turbulence, an industry converges," January
17, 2024
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SOURCE Envestnet, Inc.