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

Envestnet Releases 2024 Advisor Perspectives Survey, Highlights Untapped Opportunities 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 insights on how advisors are planning to grow, scale, and safeguard 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 recognize holistic advice as the biggest untapped opportunity in wealth management today. Envestnet’s strategy aligns perfectly with this opportunity by providing 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 financial advisory practices:

1. Holistic Advice: Advisors are increasingly focusing on integrating services like tax, estate, and 401(k) planning as a significant growth area. Clients also show a preference for this holistic approach, with nearly half expressing a desire to work with professionals who can address various financial needs.

2. Fee-Based Models: Advisors affiliated with brokerage firms are expected to increase their fee-based asset mix by 11 percentage points over the next five years, signaling a shift towards more transparent compensation models.

3. Integrated Technology Stacks: The majority of advisors prefer all-in-one technology solutions over piecemeal approaches using separate tools. This preference underscores the importance of integrated systems in enhancing operational efficiency and client experiences.

4. Organic Growth Challenges: Time constraints and prospecting efforts pose significant obstacles to organic growth for advisors. While organic growth is deemed crucial by 71% of advisors, median growth in assets excluding market appreciation remains modest at 2-3%, indicating a need for new strategies such as outsourcing business functions, digital lead prospecting, brand marketing, and automation.

5. Next-Gen Investors: Advisors are increasingly focusing on serving younger, digitally native investors, with 36% planning to add tools and advice for this segment within the next two years. Modern client portals and mobile apps are essential to engage this demographic effectively.

Chris Shutler, Head of Strategic Development & Market Intelligence for 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 generative AI use cases, which is still in its early stages of development.

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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