In our modern world, advice firms are continually evolving their value proposition and service offer to meet the needs and wants of their clients. Over the last three years, portfolios have changed, their use of digital technology and their expectations from their financial adviser has evolved.

Further, we have set out to help what matters to end clients and developed a framework that examines what is important to them. We consider preferences to: portfolio construction, responsible investing, communication, technology, education and more.

These key findings have been gathered from data collected over three years using Advisable Australian research generous in providing invaluable insights to financial advice firms about how advised Australians want advice to be delivered and how they would like to see it evolve.

Australians benefit from their advice relationship in more ways than just growing their wealth

Australians who are advised feel more confident and able to enjoy life, are more prepared for retirement and have more savings. They are also significantly less likely to have daily money worries than those unadvised, and say that advice has allowed them to lead a better lifestyle.

The profile of an advised client is not who you’d expect, they’re often younger

Male and educated are the top line results, but perhaps surprisingly, Gen Y who are now aged between 28 and 42 years old are the greatest users of financial advice.

Wealth needs are diverse, with many entry points for advisers to add value

Advised Australians have a range of goals covering wealth creation, budgeting and cash flow management, retirement planning, wealth protection and building a legacy. In analyzing the different segments, gaps begin to appear in how confident they feel, if they are able to will achieve their wealth goals and are looking for additional guidance.

Australians want more investment choice, with different appetites emerging across segments

The appetite for non-traditional assets such as cryptocurrencies, commodities and gold has grown which has a degree of appetite that does vary across segments.

Responsible investing is here to stay, and there is a desire to dial it up

Advised Australians care about social and environmental issues, with a quarter of those advised reporting they will choose a company to invest in based on their environmental stance. Advised clients want to invest responsibly because they want to do good but also believe there are good financial returns to be made, with half believing returns are as good as traditional investments – a further third think they are better!

 Investment structures provide further choice and differentiation opportunities

The investment complexity of advised clients is also increasing as they look to different structures to support this, such as SMSFs and trusts.

Luxury extends to financial advice

Clients say they would rate travel and lifestyle perks such as exclusive flights or hotel offers as an important or somewhat important value-add service that an advice firm could offer.

Coach me or ‘do it for me’ please

With regards to client experience and service, our research finds that advised Australians either want a coach or to outsource entirely, with some nuances over how much control they are willing for their adviser to take.

Regardless of age or segment, most advised Australians are comfortable with technology

More than half of all segments are early adopters of technology or are happy to use technology. The use of technology with stronger preferences than other segments to use websites and apps to view and manage their super or investments, for digital wallets or money transfer services are great for clients. This highlights their lived experience with technology as a main stay in their lives as well as the opportunity to use technology with this segment.

Clients expect a multi-mode digital and physical engagement mode

Clients’ expect prompt and reliable access to information as well as access to their adviser via a variety of different communication modes – whether that be digital or in-person or a hybrid approach.

The role of technology plays a different role at different points in the client relationship, particularly as the relationship evolves where it can be used for the provision of information and education, managing documents, as well as approving and signing forms and instructions.

Education is a by-product of advice, and a builder of confidence and financial literacy

The role financial advisers play in educating their clients is demonstrated through their higher levels of financial literacy when compared to unadvised clients.

Advice is addictive and highlights the opportunity to work more closely with other professionals

Those who seek advice are also likely to receive counsel from other professionals such as accountants and lawyers, which provides an opportunity for advice firm to partner and build out their ecosystem of like-minded professionals, so they can service their clients better.

Drivers of decision-making must be factored into the advice process to deliver an inclusive value proposition

The relationship status of advised clients as well as gender influence how clients will engage with advisers and make wealth decisions.

 Flat fees are preferred, but they still want choice

How advice is charged, whether it be a flat fee or percentage is central to clients’ concept of value. It is clear from the research that advised clients prefer to pay a flat fee, but ultimately the pricing model must best suit the needs of your clients.

Humble Goode Financial places a priority on aligning with the client's values and focuses on crafting a portfolio that reflects their unique priorities and preferences. We invite you to give us a call on 08 7477 8252 or email planning@hgfp.com.au to check your options.

General Advice Warning:

The information on this website is intended to be general in nature and is not personal financial product advice. It does not take into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs. In particular, you should seek independent financial advice and read the relevant product disclosure statement (PDS) or other offer document prior to making an investment decision in relation to a financial product.