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Failure to Understand Younger Investors Could Affect Advisors' Ability to Attract Clients, J.D. Power FindsWith consumers in the Millennial1 generation poised to inherit more than $68 trillion in wealth from their Boomer parents during the next decade, full-service wealth management firms have a vested interest in tailoring their services to the evolving needs of younger investors. According to the J.D. Power 2021 U.S. Full-Service Investor Satisfaction Study,SM released today, the past year has exposed a stark divergence in the investment behavior of younger investors compared with their older counterparts. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210415005379/en/ J.D. Power 2021 U.S. Full-Service Investor Satisfaction Study (Graphic: Business Wire) "Investors under age 40 are changing much more quickly in terms of their wealth management preferences and priorities-and they look increasingly different from Boomers," said Mike Foy, senior director of wealth intelligence at J.D. Power. "Not only has the pandemic significantly accelerated their shift to more digital engagement, but emerging issues like ESG [environmental, social and governance] are also a major priority for them that isn't seen as much yet among Boomers. Wealth management providers are making a mistake if they assume that the emerging affluent investors will simply evolve into Boomers over time. Firms with the ability to recognize and address these changing needs will define success through the great wealth transfer." Following are some key findings of the 2021 study:
Study Ranking Edward Jones ranks highest in overall investor satisfaction with a score of 770 (on a 1,000-point scale). Stifel (760) ranks second, while Fidelity (751), RBC (751) and UBS (751) each rank third in a tie. The U.S. Full-Service Investor Satisfaction Study, now in its 19th year, is redesigned for 2021. As a result of the study redesign, scores are not comparable to those of previous years. The study measures overall investor satisfaction with full-service investment firms in seven factors (in order of importance): trust; people; products and services; value for fees; ability to manage wealth how and when I want; problem resolution; and digital channels. The study is based on responses from 4,392 investors who make some or all of their investment decisions with a financial advisor. The study was fielded from December 2020 through February 2021. For more information about the U.S. Full-Service Investor Satisfaction Study, visit https://www.jdpower.com/business/resource/us-full-service-investor-satisfaction-study. To view the online press release, please visit http://www.jdpower.com/pr-id/2021033. About J.D. Power J.D. Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, J.D. Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world's leading businesses across major industries rely on J.D. Power to guide their customer-facing strategies. J.D. Power is headquartered in Troy, Mich., and has offices in North America, Europe and Asia Pacific. To learn more about the company's business offerings, visit JDPower.com/business. The J.D. Power auto shopping tool can be found at JDPower.com. About J.D. Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info 1 J.D. Power defines generational groups as Pre-Boomers (born before 1946); Boomers (1946-1964); Gen X (1965-1976); Gen Y (1977-1994); and Gen Z (1995-2004). Millennials (1982-1994) are a subset of Gen Y.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210415005379/en/ |