In Focus

What a difference a year makes.

The wealth management industry is undergoing significant change and financial advisers have adjusted their expectations accordingly.

While 2009 was all about communication and reputation, it is now administration and product that is driving adviser satisfaction with their wealth managers.

The CoreData Wealth Management Report, conducted in November last year, reveals big shifts in the drivers of adviser satisfaction.

In 2009, communication with advisers and the image and reputation of the wealth manager were the primary drivers of adviser satisfaction with their wealth management providers.

These two components contributed a combined 20.7% to advisers overall satisfaction.

However in 2010, administration is the number one driver, contributing to almost one quarter of overall adviser satisfaction (23.3%), while the product offer around superannuation (business/corporate) contributed nearly one fifth (19.0%).

The factors that were most important in 2009 have slipped down the ranks; communication fell from first to third and image and reputation from second to sixth.

In fact, the top three satisfaction drivers for 2010 combined contribute to just under three fifths of overall adviser satisfaction – a considerable shift from 2009 where the top three components combined contributed to less than one third of overall satisfaction.

So what does this mean for purveyors of wealth management products and services?

The considerable concentration in what’s driving satisfaction necessitates much less of a dartboard approach to business strategy.

By focusing resources on the top three components, providers can directly target adviser satisfaction levels with their business and thus grow product sales, service quality and advocacy throughout the industry.

The CoreData Wealth Management research covered 10 of the biggest wealth managers.

The full report identifies 12 components and how they contribute to overall adviser satisfaction, including a full breakdown of how the top 10 wealth management providers perform in each area and overall.

*For more information on the 2010 Wealth Management Report please contact CoreData on 02 9376 9600.