Investor preferences undergo lasting transformation from Covid-19 pandemic, reveals Broadridge survey
Millennial investors are most likely to use video chat
New ways of communicating are
here to stay
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Provide the right advice at the right time. Advisors must adapt their communication frequency and method to best serve their clients virtually through times of market volatility. In light of stay-at-home mandates and increased economic uncertainty, investors are requiring personalized advice through digital channels, including phone calls, emails and video chat.
Connect with the next generation of investors. With a large wealth transfer imminent, it’s critical for advisors to adapt their communication methods to connect with Gen Z and Millennials through social media.
Don’t underestimate the value of family networks. Advisors are missing the mark on communicating with those who are one degree of separation away from their own clients. While nearly half of clients are reportedly gained through referrals, less than half of investors report that their advisor has communicated with their heir.
Our world has changed
Temporary meets permanent
Different interactions
Returning to normal
One message for better experiences
Conclusion
Methodology
The survey of 1000 individuals who currently use a financial advisor in the United States and Canada was fielded in June 2020 by Engine, a market research firm.
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62% of of those who reported a change in mode of communication said they would entirely or partially maintain their new methods after the pandemic ends.
57% of investors report change in HOW THEY COMMUNICATE WITH THEIR ADVISORS
Changes in how investors and financial advisors collaborate, at first caused by Covid-19, are likely to remain long after the pandemic.
36
%
46
%
58
%
PHONE CALLS
EMAILS
Cited phone calls as
a new way of communication
Cited emails as a new way of communication
Used video chats, even though only 9% prefer this method above all others
INVESTORS
INVESTORS
40
MUCH MORE
FREQUENT
SOMEWHAT MORE
FREQUENT
23
SOMEWHAT LESS
FREQUENT
39
46
16
22
%
%
%
%
%
%
MILLENNIAL INVESTORS
59
%
Financial advisor website
or communication
21
%
46
%
16
%
45
%
Investors
32
%
Investors
“With clients spending more time at home due to the pandemic, advisors have a once-in-a-lifetime opportunity to develop a deeper relationship with their client’s entire family”
Conclusion
44
%
Comprehensive view of their accounts
32
%
Money saving tips tailored for them
Tailored money savings tips and investment ideas were important
Investor preferences undergo lasting transformation from Covid-19 pandemic, reveals Broadridge survey
Investors prefer information that is individualized to them
New ways of communication with your advisors
79% of investors said that frequency of communication with their advisors changed in light of new stay-at-home mandates
71% of investors are most likely to seek out financial information from a website or communication
Most investors first discovered their financial advisor through a personal referral but Canadians were more likely to discover their advisors through their financial institution
Michael Alexander, President of Wealth Management at Broadridge
VIDEO CHAT
Were most likely to use video chat with their advisor
The types of communication investors would like to see include account information and tips
Personalized and individualized
advisor communications
Personalized analysis of investing habits
Ideas for new investment vehicles that could work for them
Money saving tips tailored for them
Comprehensive view of their accounts
Tailored money savings tips and investment ideas were important
Investors prefer information that is individualized to them
44
%
32
%
32
%
29
%
Financial institution
website or communication
Trusted friend or
family member
PERSONAL REFERRAL
19
%
FINANCIAL INSTITUTION
42
%
Investors
Even though 44% of respondents stated that they discovered their financial advisor through a personal referral, many have not communicated with their investors’ families
Advisors are missing a big opportunity
HEIR
6
%
Almost half of advisors have not communicated with those who will inherit or influence their investor clients
CHILDREN
14
%
GRANDCHILDREN
4
%
SPOUSE / EX-SPOUSE / PARTNER
42
%
NONE OF THE ABOVE
44
%
GEN Z
GEN X
60
%
BABY BOOMERS
87
%
86
%
20
%
Overwhelming majority of Gen Z and Millennials are more comfortable in having an advisor following them and offering a more customized experience compared to Gen X and Baby Boomers
Social media remains key to connecting with younger clients
MILLENNIALS
Investor preferences undergo lasting transformation from Covid-19 pandemic, reveals Broadridge survey
62% of of those who reported a change in mode of communication said they would entirely or partially maintain their new methods after the pandemic ends.
57% of investors report change in HOW THEY COMMUNICATE WITH THEIR ADVISORS
Changes in how investors and financial advisors collaborate, at first caused by Covid-19, are likely to remain long after the pandemic.
“Advisors and investors adapted their behaviors to comply with stay-at-home mandates and social distancing rules, which led to an increase in digital communications and video conferencing, more personalized emails, and more frequent phone calls”
Michael Alexander, President of Wealth Management at Broadridge
MILLENNIAL INVESTORS
59
%
MUCH MORE
FREQUENT
SOMEWHAT MORE
FREQUENT
46
%
SOMEWHAT LESS
FREQUENT
INVESTORS
INVESTORS
39
%
23
%
40
%
22
%
16
%
PHONE CALLS
EMAILS
Used video chats, even though only 9% prefer this method above all others
36
%
Cited emails as a new way of communication
46
%
Cited phone calls as
a new way of communication
58
%
Millennial investors are most likely to use video chat
New ways of communicating are here to stay
59
%
The types of communication investors would like to see include account information and tips
Personalized and individualized
advisor communications
32
%
Ideas for new investment vehicles that could work for them
29
%
Personalized analysis of investing habits
Even though 44% of respondents stated that they discovered their financial advisor through a personal referral, many have not communicated with their investors’ families
Advisors are missing a big opportunity
CHILDREN
14
%
Almost half of advisors have not communicated with those who will inherit
or influence their investor clients
GRANDCHILDREN
4
%
HEIR
6
%
SPOUSE / EX-SPOUSE / PARTNER
42
%
SPOUSE / EX-SPOUSE / PARTNER
44
%
“With clients spending more time at home due to the pandemic, advisors have a once-in-a-lifetime opportunity to develop a deeper relationship with their client’s entire family”
Michael Alexander, President of Wealth Management at Broadridge
Investors
Investors
45
%
Investors
PERSONAL REFERRAL
32
%
19
%
Investors
FINANCIAL INSTITUTION
42
%
Investors