Poor digital and ESG offerings are preventing wealth advisers from gaining new business from families they already work for, new research from Oxford Risk shows.
According to the behavioural finance expert, nearly half (48%) of people whose families had relationships with wealth advisers did not seek support from their adviser after receiving £250,000 + inheritances in the past five years. Nearly one in 10 (8%) did not get any advice.
Oxford Risk’s study found that advisers are missing out on 200,000 potential new clients, with average inheritances to invest of around £681,250.
Looking ahead, 46% of people whose families have an adviser do not plan to seek their adviser’s support when they receive their inheritance in the next five years.
Oxford Study said a lack of ESG services posed a barrier, with 29% citing this as a reason not to use their family adviser and the same number concerned the adviser did not understand what they wanted.
Around a quarter of people said their adviser was too focused on older clients, while 17% were put off by the adviser’s website or by them not offering a digital service.
Greg B Davies, head of behavioural finance at Oxford Risk, said: “Wealth advisers clearly cannot win every client just because a family already has a business relationship but it is striking that so many people go elsewhere for advice or do not get advice at all.
“Not offering an ESG service or not keeping up to date with technology advances are the major reasons why potential clients are opting to go elsewhere or not seek any advice at all and advisers should consider addressing these issues.”
