Introduction

Each year, the Envestnet Market Intelligence team surveys financial advisors to better understand the current state of their practices and how they expect those practices and the broader wealth landscape to evolve in the years ahead.


Thank you to all the advisors who provided thoughtful responses. And thank you to our clients; we hope this report provides helpful perspective and leads to a few new ideas on your journey to creating more effective, productive, and efficient firms.


Scroll to discover the top five key insights and download the report.

Untapped Opportunity? Holistic Advice

Advisors view the expansion of service models (e.g., tax, estate, 401(k) planning) as the most underappreciated opportunity in the industry. And clients agree: McKinsey found that nearly half of all wealth clients prefer to work with an investment professional that can holistically address financial needs across investments, taxes, banking, and life insurance.1

 

1 McKinsey, “US wealth management: Amid market turbulence, an industry converges,” January 17, 2024
untapped opportunity image
Fee-Based Advice on the Rise

Advisors affiliated with brokerage firms anticipate increasing their fee-based asset mix by 11 percentage points over the next five years. This shift underscores a growing preference for more transparent and client-aligned compensation models.
fee based advice
Preference for All-in-One Technology Stacks

Nearly three times as many advisors favor an all-in-one technology solution over a DIY approach using point solutions. This preference highlights the importance of integrated systems in enhancing operational efficiency and delivering a seamless client experience.
all-in-one tech stacks
The Organic Growth Imperative

Time and prospecting are cited as the primary obstacles to organic growth. Despite 71% of advisors considering organic growth "very important," the median advisory firm saw only 2-3% growth in assets excluding market appreciation. This finding suggests a need for advisors to rethink strategies around outsourced business functions, digital lead prospecting and referrals, brand marketing, and automation.
organic growth - rich aneser

From Talking Point to Focal Point: Next-Gen Investors

Serving younger investors is moving from a talking point to a focal point, with 36% of advisors planning to add tools and advice for this segment within the next two years. Adoption of modern client portals and mobile apps will be necessary to engage these young, digitally native clients.
next-gen investors

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