Switching to bespoke investment services for clients is boosting adviser profitability, new research from Rathbones Group has shown.
According to the wealth manager, 95% of advisers say their company’s overall profitability has improved, with 97% reporting that they can take on more clients as a result.
Its research found all advisers said clients were “generally happy” when they offered a bespoke service to them, with more than a third (35%) stating clients were very happy.
The study also found that advisers were almost equally divided over whether it was difficult to introduce a third-party investment manager service into their business. Just over half (51%) said their company did not find it difficult to do this, while 48% said it was difficult.
Beyond profitability, Rathbones’ findings showed several other benefits to bespoke services, with 85% of advisers noting their relationship with clients had improved after introducing a third-party service. The number of meetings with clients also increased for 85% of advisers, with nearly a fifth (19%) reporting a dramatic increase.
Simon Taylor, head of strategic partnerships and platforms at Rathbones, said: “Moving clients to a bespoke investment service needs to be carefully considered by advisers, with a wide range of factors to look at.
“The advantages of making the switch are, however, clear from the research, with clients benefitting in terms of improved relationships, and advisers seeing increases in profitability and being able to take on more clients. We only expect the demand for advice to increase, as more clients move towards and into retirement. This strengthens the need for adviser firms to build partnerships with discretionary fund management firms.”
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