Page 47 - Investment Advisor May 2021

said. Clients also will get emails from Overview tool the most appealing. client base, although likely more so by
advisors to notify them that Overview “Video has become more of the younger clients, he said.
was sent to them. normal way in which individuals The company will continue to get
Wealth Overview is part of the ML like to consume data, especially the feedback from clients to make improve-
One 2.0 “multi-year strategy,” he said, younger demographic,” according to ments as needed, add new features, and
noting ML One is the platform that Tim Paul, client experience and col- gauge who is reacting positively, the
financial advisors use to enroll and man- laboration executive at Merrill Lynch executives said.
age clients in the advisory program. As Wealth Management. Although Digital Wealth Overview
part of the 2.0 initiative, the company is Based on feedback from surveying is “absolutely a differentiating ser-
“simplifying, modernizing and advanc- Merrill clients, Digital Wealth Overview vice,” Swanson stressed: “We do not
ing” the advisory program, he explained. was seen favorably because, even among expect a narrated video that’s interac-
some older clients, it “gives them the tive to replace what our financial advi-
THE TARGET AUDIENCE ability to go through and consume the sors do for their clients…. We envision
The company expects that younger information at their own pace,” he said. this as a tool to complement all of the
clients will likely, at least initially, be Merrill expects the tool to be “embraced ways advisors are currently engaging
the ones who find the Digital Wealth by a pretty wide” percentage of the with clients.”

Are the Benefits of Switching systems and 71% lost revenue during the

Firms Worth the Costs? transition period as the top challenges
they experienced.
Cerulli said given that operation-
hree in four advisors say the abil- Cerulli Associate Director Michael al challenges, such as opening new
Tity to build financial value is a top Rosesaid in a statement, noting, too, accounts and processing account
reason for changing firms, and two in that rates of client attrition can vary transfers, are the ones most cited by
three say the main reasons are a desire considerably from one advisor practice breakaway advisors, firms that invest
for greater independence and unhap- to another. in related technology and operational
piness with senior manage- personnel are likely to have
ment, according to research Besides client attrition, 77% of a major competitive advan-
released in late March by advisors switching firms identify tage in advisor recruitment
Cerulli Associates. and retention.
But they also cite the risk operational matters, 75% “Many large firms are
of losing client assets, as well often better positioned to
as challenges related to prac- learning new technology systems spread large investments in
tice management, in their and 71% lost revenue during technology across a wider
decision to move. number of advisors and pro-
Cerulli found that advi- the transition period as the top vide greater financial incen-
sors lose 19% of client challenges they experienced. tives,” Rose said.
assets, on average, when Moreover, the pandemic
they change firm affili- could have long-term impli-
ations, on top of planned attrition. “It is critical that advisors per- cations for streamlined account tran-
Those who move from one indepen- form an honest self-assessment of the sitioning for newly recruited advisors,
dent firm to another report the biggest strength of their client relationships, according to Cerulli. Over the past
amount of planned attrition of assets and the share of their client base that year, firms have been forced to deploy
under management. could be at risk as a result of breaking digital onboarding processes and
“Unplanned client attrition is a away,” he said. related technologies.
Adobe Stock particularly those who consider break- sors switching firms identify operation- Jeff Berman is staff reporter for Investment
significant concern among advisors,
Besides client attrition, 77% of advi-
ing away to an independent channel,”
al matters, 75% learning new technology
Advisor Group. Reach him a [email protected].

MAY 2021 INVESTMENT ADVISOR 45