Asset management websites have officially replaced wholesalers and legacy relationships as the primary drivers of engagement with investment advisors, according to the recently released J.D. Power 2022 U.S. Advisor Online Experience Study.
While that’s good news for some of the biggest brands like BlackRock, the research found smaller asset managers are struggling to differentiate and showcase their unique value propositions in this increasingly digital-first environment.
“The numbers make it crystal clear: asset managers that provide an exceptional digital experience for advisors drive significantly higher likelihood of increased investment”
J.D. Power’s Mike Foy
This is especially troubling, J.D. Power says, as the research clearly establishes a strong connection between the quality of the digital experience and advisor intention to invest more with that asset manager.
The U.S. Advisor Online Experience Study explores how financial advisors interact with asset manager websites as part of their practice of helping clients build and manage optimal portfolios.
“The numbers make it crystal clear: asset managers that provide an exceptional digital experience for advisors drive significantly higher likelihood of increased investment, but just 13% of asset managers are delivering that superior level of service today,” said Mike Foy, senior director and head of wealth intelligence at J.D. Power. “The problem is particularly acute among smaller asset managers who have a tremendous need and opportunity to differentiate and highlight their unique strengths on digital, but often miss the mark with sub-par navigation and tools—and little in the way of compelling brand differentiation.”
Following are some key findings of the 2022 study:
- Website satisfaction tied to intent to invest: Among advisors who have overall satisfaction scores of 801 or higher (on a 1,000-point scale) with an asset manager’s website, 91% say they are extremely likely to increase investment during the next three months with that firm. However, just 13% of asset manager websites have earned these high scores. Among advisors who have overall satisfaction scores of 800 or lower with the asset manager’s website, just 40% say they intend to increase investment with those brands.
- Smaller asset managers struggle to compete on digital: The average overall satisfaction score among large asset managers with $1 trillion or more in U.S. non-institutional assets under management is 657. That number falls to 617 among small asset managers with less than $400 billion under management. The gap in website satisfaction between small and large asset managers is widest in the areas of research information and content; availability of client-specific information and material; and researching product offerings and information.
- Opportunities to differentiate: Areas in which smaller asset managers have an opportunity to differentiate include increased tool offerings (such as investment comparison tools); more prominent placement of those tools on website homepage and navigation bars; and more upfront, immediate access to client information.
- Missing the mark on ESG: One area in which nearly all asset managers are falling short on their websites is providing information on environmental, social and governance (ESG) issues. Just 29% of asset managers are currently meeting an advisor’s needs when it comes to ESG reporting.
Individual scores and rankings are not provided in this benchmarking study. Firms included in the study are (in alphabetical order):
AllianceBernstein
BlackRock
Capital Group
Charles Schwab
Columbia Threadneedle Investments
Fidelity Investments
Franklin Templeton
Invesco
J.P. Morgan
MetLife Investment Management
MFS Investment Management
Morgan Stanley
Nuveen
PIMCO
Prudential Financial
State Street Global Advisors (SSGA)
T. Rowe Price
Vanguard
The 2022 U.S. Advisor Online Experience Study evaluates advisor interaction with asset manager websites based on four factors: speed; information/content; visual appeal; and navigation. The study is based on 2,320 total evaluations and was fielded from June through August 2022.
For more information about the 2022 U.S. Advisor Online Experience Study, visit https://www.jdpower.com/business/wealth-management/advisor-online-experience-study.
SEE ALSO:
• Participants Not Satisfied with Retirement Plan Digital Experience: J.D. Power
• Big Shakeup in J.D. Power’s New Full-Service Investment Firm Rankings