Financial Planning Research Roundup: June 2021
• Cara Woodland • July 2, 2021
The wealth management industry was put to the test in 2020. The pandemic impacted operations in a way that could have never been predicted. Since then, digitization has accelerated, clients want more control, and the business model for advice has proven resilient. These trends and more shape what comes next in financial services.
1. The Value of Personal Advice: Wealth Management Through the Pandemic – McKinsey & Company
Through 2020, wealth management business models proved remarkably resilient. While the number of new clients added per advisor dipped, client retention was record-high, as was asset and revenue growth per advisor, though the latter was primarily driven by market performance. McKinsey & Company offers an interesting look at the wealth management industry through the pandemic here.
2. The Quest for Equilibrium Between Wealth Managers and Asset Managers – Money Management Institute and Fuse Research Network
The wealth management and asset management industries are deeply intertwined, sharing essentially the same client base. Consolidation, rising costs, portfolio construction—long-term trends impact the balance of power between both industries. This report from MMI and Fuse Research Network explores these trends and more.
3. The Cerulli Edge: U.S. Asset and Wealth Management Edition – June 2021, Issue #286 – Cerulli Associates
The pandemic has prompted more client desire for control over their own investments. This desire is inversely correlated with age, however, with just 10 percent of those 70 and older wanting control and 60 percent of those under 30 wanting control. It’s becoming clear that a key to long-term relationships is offering a way for clients to feel connected with their assets. Read this and more from the Cerulli Edge.
4. The ROI of Financial Planning Software – eMoney
eMoney recently surveyed a group of users to gauge the ROI of financial planning software, including how quickly ROI is realized and which areas of the business saw the most benefits. Results showed that 50 percent saw ROI in less than six months, and users most frequently listed three primary benefits that led to ROI: improved client satisfaction and engagement, enhanced business processes and efficiency, and an increased ability to attract new clients. You can read more about the results here.
Stay tuned for next month’s financial planning research roundup!
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