We teamed up with the research company Censuswide to get the unbiased answers required for us to compile our report: The future of wealth management: post-lockdown and beyond. It highlights some of the trends emerging within the sector and the acceleration of these trends.
Investors want more control
Better technology is the crucial bridge for investors who want more control of their money post-lockdown. Our survey revealed that 70% of investors would like to be able to track their portfolio performance 24/7 online. And 63% would like to go further – to be able to manage their investments virtually, including opening and closing accounts, subscribing to ISAs and transferring pensions.
Planning ahead with more confidence is vital, too, with 56% of respondents valuing access to online financial planning tools. And to reflect the increasing flexibility that investors now demand, 75% expect their provider to offer online meetings as a complement or replacement to physical meetings post-lockdown.
Value for money – and why some investors have had enough
Irrespective of their profile, value for money is taking on an increased significance for investors. A third of investors using a wealth manager said they were considering switching from their current provider, with 56% stating this was due to the high fees their adviser charged. Poor investment returns are prompting 47% to seek a better option.
15% of investors were concerned that their fees were simply
covering ‘swanky offices’ and ‘expensive lunches’
The dial is clearly shifting on value for money. Investors are looking to providers to justify their charges and provide greater transparency around fee structures. High net worth investors are even more adamant they should receive a service worth paying for – 44% of those with more than £1m in investable assets are currently considering switching provider.
What the next generation of investors think
The next generation are most likely to switch to a new provider if they feel their expectations are not being met. Over half (52%) of those aged between 18-35 are considering changing their current investment manager.
Transparency is a big deal: 73% of 18-35-year olds expect more transparency around fees compared to 66% of those aged 36 and above, while 79% want to see greater transparency on the performance of their investments vs. 71% of their older peers.
And while we would expect more of this tech-savvy generation to expect access to online financial planning tools as part of their service in future (71% vs. 61%), 64% of young DIY investors are looking to access professional guidance or advice. An above average proportion of those aged between 18-35 felt an annual face-to-face meeting with their provider was still important.
Conclusion: what the results tell us
Nobody can predict the future social, economic and investment landscape. What is clear is that investors across generations value the right guidance and tools to help them plan ahead. It is also evident they increasingly want more control over their money, enabled by technology.
Investors are prepared to act, too. With such a large proportion considering switching from their current provider, value for money – with consistent returns – and transparency are deal breakers. The need to deliver on these critical aspects of wealth management are crucial for this generation of investors, and the next.
As we all have to adapt our lives – to overcome new challenges as the landscape changes – shouldn’t it be the same for those who look after our money?
Please note, the value of your investments can go down as well as up
All figures, unless otherwise stated, are from Censuswide. Total sample size was 1,002 adults with £50k+ in investable assets. Fieldwork was undertaken between 22–31 July 2020.