While 82% of affluent investors considered “Advice Seekers” may prefer a single financial provider, new research from Cerulli, U.S. Retail Investor Advice Relationships 2024, finds they’re actively monitoring the landscape for better solutions. Providers engaging with this cohort of investors will need to consistently remind them of the breadth and quality of their platforms to remain top of mind as clients’ preferences evolve.

While Advice Seekers default to a preference for incumbent providers, until they firmly establish a trusted advisor relationship and likely migrate to the Advisor-Reliant segment, Advice Seekers will be searching for solutions that may better match their requirements. Advice Seekers, representing 17% of affluent investors, report an average relationship length of 8.0 years, including 46% with relationships of less than five years, 11 percentage points higher than any other behavioral advice orientation segment. After beginning a relationship, 93% of Advice Seekers indicate they look to their current provider when considering adding a new product or service. Yet, at the same time, a sizeable amount (41%) of Advice Seekers plan to switch some or all their assets to another provider in the next 12 months.

“Despite high overall satisfaction levels—92% of Advice Seekers believe their financial advisor can solve their financial needs—this cohort is not yet committed,” says Scott Smith, director. “While an advice provider may initially serve the needs of an affluent investor, their preferences may change, and until they firmly establish a trusted advisor relationship, they may look elsewhere.” According to the research, Advice Seekers are the most likely to say they need more advice than they have in the past (75%).

Given Advice Seekers’ high overall satisfaction with financial advisors, it's imperative that providers make every effort to supply Advice Seekers’ advisors with the resources to help them highlight the quality of their advice offerings. “As a cohort, Advice Seekers are interested in expanding the breadth and depth of their advice relationships more than any other group of affluent investors,” says Smith. “They also expect an elevated level of support and collaboration to help guide them as they progress on their financial journey,” he adds.

While a provider may not have a proprietary offering that is the best solution to every need, by helping clients assess their current needs and honestly recommending proprietary or external solutions that best fit these needs, advisors can greatly strengthen their credibility with clients.

“A key takeaway for platform providers is that the next generation of affluent clients, represented by Advice Seekers, have a high and broad set of expectations for the services that should be available to them,” says Smith. “To retain these clients, advisors will need to dedicate themselves to understanding their circumstances and goals and offer solutions every step of the way in order to secure their trust—and assets.”