New Realities, New Approaches: The Client-Advisor Relationship in Wealth Management

Changing client expectations and shifts in the competitive landscape are reshaping the playing field for wealth managers. Advice-led distribution will remain a key focus for many firms, but the client-advisor relationship must evolve in response to growing consumer demand for customization and the imminent threat of new competitors.

In this report, Accenture examines how wealth management companies are rethinking their relationships with clients and their own advisors.

In the past, advisors enjoyed a near monopoly on financial information. “Do-it-yourself” options for portfolio management and securities trading simply did not exist. Today, consumers have direct access to increasingly sophisticated planning tools and a wide variety of investment products. Although many investors still look to advisors for advice, they come equipped with more information and less loyalty than their predecessors.

At the same time, the wealth management landscape is becoming crowded as players from adjacent industries—including universal banks, insurance companies, pure-play direct companies and non-financial firms—begin offering competing services. To stand out from the crowd, wealth management firms must be equipped to customize their client interactions and provide an integrated, multichannel experience.

For a growing number of investors, the next generation of direct wealth management offerings promises to be a viable alternative to a full-service advisor relationship. Firms hoping to achieve and sustain success with an advisor-led model should focus on promoting collaboration, improving process efficiency and supporting strong relationships.

Specifically, these firms must consider how they can:

• Satisfy client expectations for a customized experience.
• Provide highly tailored experiences to a broader range of client segments.
• Increase customer intimacy.
• Complement face-to-face interactions with self-serve options.
• Institutionalize and promote the practices of top performers.
• Make advisors a one-stop shop for financial services, including tax, estate and retirement planning.

The need for wealth management advice has never been greater, but the way it is delivered is changing. Consumers are increasingly dictating the terms of their client-advisor relationships. To stay competitive, firms must evolve with the needs and preferences of their investors.

Accenture has identified four major courses of action for delivering a tailored client experience:

• Introduce a proposal tool that is dynamic, interactive and fully integrated.
• Help advisors understand client needs and provide tailored solutions.
• Integrate mobile technology and social media into the advisory experience.
• Apply the private banking model used with ultra-high-net worth clients to other wealth tiers.