Investors who work with financial advisors value trust more than any other consideration in those relationships, according to a new survey from Capintel, a B2B fintech company. In a survey of 1,000 investors, a large majority (72%) said the top quality they look for in an advisor is “someone I can trust.”
This consideration ranked above the advisor’s investing experience (50% of respondents), ability to look at the client’s whole financial picture (46% of respondents), ability to explain the advisor’s approach to managing the client’s finances (34% of respondents) and proactive communication (23% respondents), among other things.
In addition, most survey respondents (61%) indicated that no longer trusting their financial advisor would be the top reason they would look for a replacement. Another 54% said they would look for a new advisor if their investments performed below their expectations, 46% said they would look for a replacement if their advisor didn’t communicate clearly, and 45% said they would leave if their overall client experience was not good.
Among the top ways that advisors can build trust with their clients, 46% of survey respondents pointed to a demonstrated understanding of their financial health and goals, as well as clear and accurate information about their financial performance. Another 39% said a proven track record would help them trust their advisors more, while 31% said that both equipping them with the knowledge to make informed financial decisions and personalized advice would help them develop trust.
Investors also value clear communication about their financial situation from their advisors (85%), advice that’s presented in a clear, organized fashion (82%), advice that’s personalized (80%) and regular updates on their portfolio (68%).
The highest percentage of surveyed investors (43%) prefer to communicate with their advisors quarterly. Another 21% would like bi-annual communication. Only 18% said they prefer monthly communication, followed by 9% each who prefer either annual communication or communication on an “as needed” basis.
The majority of investors’ primary method of communication with their advisors is by phone (67%), followed by digital (61%) and in-person (54%). A slightly higher share of investors (56%) would prefer to communicate primarily in person vs. digitally (53%).
However, most millennial investors (69%) would prefer to communicate with their advisors digitally, compared to 57% of Gen X investors and 43% of baby boomers.
The Capintel survey was conducted online by independent research firm Logica Research from August to September 2024. It included 1,000 investors with more than $50,000 in investible assets who work with a financial advisor.
