More Investors Willing to Pay for Financial Advice: Cerulli

By Alex Padalka October 28, 2020

The coronavirus crisis may present an excellent opportunity for advisors to build their client base, as investors with advisors have high satisfaction rates and more investors overall want to pay for advice, according to a recent survey.

Eighty percent of investors say they’re satisfied with their current advisor, while only 1% say they’re not, research firm Cerulli Associates says in a recent report. In particular, investors cite high satisfaction with the transparency, honesty and dependability of advisors, according to the report.

“By keeping clients abreast of market developments, while also lending a crucial empathetic ear, advisors reinforce their importance to clients and the value inherent in personalized advice relationships,” Scott Smith, a director at Cerulli, says in a statement.

Moreover, 82% of investors working with an advisor believe the services they get from an advisor are worth the price, according to the report.

Meanwhile, 40% of investors overall say they need more advice than they did before, while 56% are willing to pay for advice, up from 51% who were last year, Cerulli says.

“Current conditions have created a nearly perfect environment to expand the role of truly comprehensive financial advice relationships,” Smith says in the statement.

Cerulli suggests that advisors tap digital resources to help steer clients through financial planning. To differentiate themselves from the competition, advisors should look to data aggregation, artificial intelligence and client portal technology, according to the report.

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