Executive Briefing Paper. Capturing New Revenue Through Data Aggregation Survey Results

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Toby Booth
8 years ago
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1 Capturing New Revenue Through Data Aggregation Survey Results

2 Capturing New Revenue Through Data Aggregation Survey Results Fiserv commissioned a survey of financial advisors regarding their use of personal financial management and account aggregation tools, and their treatment of client held-away assets. The nationwide survey polled over 600 financial advisors with more than ten years of experience as registered investment advisor, wirehouse, independent broker-dealer (IBD) and insurance broker-dealer representatives. Almost all financial advisors surveyed (95 percent) report that clients ask them for advice on held-away assets, which are defined as accounts not actively managed by an advisor or held at the custodian affiliated with the advisor s financial institution. The survey also revealed nearly four out of five advisors (78 percent) do not have access to an aggregated view of their clients overall financial picture that includes held-away assets. Despite this, 73 percent said they are advising clients on their held-away assets, many using time-intensive, manual methods to identify these held-away assets. The survey implications clearly suggest automated account aggregation tools would help financial advisors provide better advice, improve efficiencies by eliminating manual data collection methods, and offer them more time to serve clients. Investors are looking for help with self-directed retirement accounts. As the financial industry shifts toward fee-based revenue models, relationships are taking on new strategic importance. Clients are clearly looking for more holistic advice when it comes to managing their total financial picture. 95% Advisors are often asked by clients for advice on self-directed retirement accounts. 33% Almost one-third of advisors are asked this question frequently. 2

The nationwide survey polled over 600 financial advisors with more than ten years of experience as registered investment advisor, wirehouse, independent broker-dealer (IBD) and insurance

3 Most advisors are giving advice on held away accounts for free. While most advisors provide advice on held away assets for free, 82 percent indicated they have interest in generating new income from this service. Most advisors provide guidance on assets they do not manage 78% Of those, the vast majority offer this service for free 73% More than half only provide this service to less than 25% of their client-base 62% Interested in generating new income from fees on held away assets 82% Most advisors try to get a holistic view of their clients held-away assets with a manual approach. While most advisors attempt to gain insight into their clients held away assets, most feel they do not have a complete view of their client s financial picture. The majority of advisors are not taking advantage of today s automated aggregation solutions which eliminate the time-consuming manual data entry of held-away assets employed by the majority of advisors. Advisors attempt to gather data for clients held-away accounts 78% Most advisors do not think they have a complete 73% Advisors who take notes from verbal discussions 45% Advisors who collect paper statements 43% Currently use automated account aggregation tools 5% 3

Most advisors provide guidance on assets they do not manage 78% Of those, the vast majority offer this service for free 73% More than half only provide this service to less than 25% of their

4 Survey Respondent Profile The chart below depicts the profile of the financial advisor respondents. The survey included advisors from firms of all types and sizes. Over 35 percent of the advisors surveyed had over 20 years experience in the field. The majority (73.3 percent) work on a commission and fee basis. Type of Firm RIA Reps 29.19% Wirehouse Reps 24.88% IBD Reps 32.84% Insurance BD Reps 13.10% Size of Firm Small office <5 Reps % Med office 6-20 Reps % Large office > 21 Reps % Type of Firm Minimal back-office % support <5 Medium support % 6-20 staffers Large staff > % 6.97% 13.10% 29.19% 21.56% % 24.88% 18.74% 59.70% 72.31% Number of Clients Small practice < % clients advised Med practice % clients advised Large practice % clients advised Over 100 clients advised 63.35% Assets Under Management AUM < $25M % AUM $26M - $100M 49.92% AUM < $100M % AUM > $100M 23.05% Fee Structure Commission only 7.79% Fee only 18.91% Commission & fee 73.30% 7.79% 36.65% 23.05% 27.03% 63.35% 18.91% 30.51% 32.84% 76.95% 49.92% 73.30% Connect With Us For more information on data aggregation or the advisor survey, please contact us at or visit 4

88% IBD Reps 32.84% Insurance BD Reps 13.10% Size of Firm Small office <5 Reps 5 9.70% Med office 6-20 Reps 1 8.74% Large office > 21 Reps 2 1.56% Type of Firm Minimal back-office 7 2.

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