Over a third of UK advisers want to increase their share of existing clients’ assets under advice in a bid to grow their business organically, but a significant number are failing to track their “share of wallet.”
New research from NextWealth and Aegon has revealed that 36% of advisers want to bring a greater proportion of their clients’ investable assets under their advice, allowing them to benefit from higher revenue generated by advice charges and enable them to create more tailored and coordinated financial plans.
Despite this, only a quarter (26%) of advisers are currently tracking their share of wallet. According to the research, understanding how much of a client’s investable assets they already advise upon could help advisers to unlock untapped value, opening up more advice opportunities and better outcomes for their clients, helping their business to grow.
NextWealth and Aegon said advisers who have a formally defined profile of their ideal target clients are twice as likely to track share of wallet (50%) than those who have an informal idea (26%). They are also five times more likely than those who have no target client profile (10%).
Stephen Crosbie, managing director – adviser platform at Aegon UK, said: “There are lots of elements that go into building and deepening a relationship between an adviser and their client, from the core fact find and attitude to risk, to the more personal aspects like understanding their savings goals and life beyond the economics.
“Although it might not seem like it at first, the concept of share of wallet could represent a considerable opportunity to improve both of these aspects.”
Crosbie said that tracking share of wallet enables advisers to spot potential strengths and opportunities or gaps and threats within their client’s entire portfolio, empowering coordinated plans, informed decisions and possibly better financial outcomes.
However, its greatest opportunity may lie in what it represents from a more personal relationship point of view.
“It shows a willingness to understand the client more deeply and where their priorities lie, which can go a long way in showcasing how you’re putting the client and their complete financial wellbeing above all else. This may strengthen trust and open new conversations that allow you to then bring their wider assets onboard and make those better decisions,” Crosbie added.
Heather Hopkins, CEO at NextWealth, commented: “Good management information is the foundation of strong businesses and strong client relationships. The firms that use their data well can see clearly where they add the most value.”
Main image: nick-hillier-aQcE3gDSSTY-unsplash
