Envestnet Releases 2024 Advisor Perspectives Survey: Key Insights and Trends in Wealth Management

Envestnet Releases 2024 Advisor Perspectives Survey, Revealing Key Trends in Wealth Management

BERWYN, PA — Envestnet (NYSE: ENV) has recently unveiled its highly anticipated 2024 Advisor Perspectives Survey, offering a deep dive into the current state of financial advisory practices and future industry trends. The survey, which gathered insights from 290 financial advisors, aims to provide valuable information on how advisors are planning to grow, scale, and protect their businesses in the coming years.

One of the standout findings from the survey is the immense potential in offering holistic advice. According to Rich Aneser, Chief Strategy Officer for Envestnet, advisors view holistic advice as the biggest untapped opportunity in wealth management today. Envestnet’s strategy aligns perfectly with this trend, as they provide a comprehensive wealth management platform that integrates technology, data, and a wide range of wealth solutions.

The survey highlights five key insights that are shaping the future of the industry:

1. Holistic Advice: Advisors are recognizing the importance of integrating services like tax, estate, and 401(k) planning to meet the diverse financial needs of clients. Nearly half of clients prefer working with professionals who can address various aspects of their financial well-being.

2. Fee-Based Models: There is a noticeable shift towards transparent compensation models, with advisors at brokerage firms expecting to increase their fee-based asset mix significantly over the next five years.

3. Integrated Technology Stacks: Advisors are leaning towards all-in-one technology solutions to enhance operational efficiency and client experiences, signaling the importance of integrated systems in the industry.

4. Organic Growth Challenges: Time constraints and prospecting efforts remain key obstacles to organic growth for advisors. New strategies such as outsourcing business functions, digital lead prospecting, and automation are needed to drive growth.

5. Next-Gen Investors: Advisors are focusing on serving younger, digitally native investors and plan to add tools and advice tailored to this segment in the near future. Modern client portals and mobile apps are essential to engage this demographic effectively.

Chris Shutler, Head of Strategic Development & Market Intelligence at Envestnet, emphasized the growing recognition among advisors of the importance of attracting and retaining next-gen investors. He also highlighted the untapped potential of data and AI in wealth management, indicating a promising yet early stage of development for generative AI use cases.

The comprehensive 2024 Advisor Perspectives Survey delves into additional topics such as investment alpha, firm valuation, high-net-worth service opportunities, financial planning utilization, and the increasing emphasis on client portals. These insights serve as a roadmap for advisors navigating the evolving landscape of wealth management.

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