Over the last 12 years, investor satisfaction with the quality of financial advice received has skyrocketed from 41% in 2009 to 81% as of 2Q 2021. While this bodes well for existing traditional advice models, advisors must broaden the scope of their guidance and update their offerings to match evolving investor preferences to minimize the threat of client defection and optimize new client acquisition.

What can advisors do to retain this sentiment?

Employ behavioral finance techniques: According to our research, increased attention to clients’ emotional biases through the lens of behavioral finance can be an impactful tool in helping set goals, maintain investment discipline, and reduce decision fatigue.

Leverage collaboration tools, including financial planning: 55% of investors find it important to have a written financial plan, up from 38% in 2009. Advisors with effective collaboration tools can use this as an opportunity to increase their engagement levels with current and prospective clients.

Understand engagement preferences: Investors’ willingness to consider adopting an online-only financial advice relationship has not grown substantially from 2017 (43%) through 2Q 2021 (45%). Though digital advice will likely remain an important initial option for younger, less affluent investors, these emerging investors will likely want access to an individual advisor as their needs evolve.

These findings, along with a complete sizing of the retail investor market in the U.S., can be viewed in depth in Cerulli’s latest report, U.S. Retail Investor Advice Relationships 2021: Navigating Perpetual Unease.