As the wealth management industry continues to evolve, the actual title of the primary advisor for investors has also changed throughout the years. At the beginning of the century, most investors relied upon a full-service broker, who was generally called “my broker”. But as online trading began to take over the role of the broker and holistic financial advice grew in importance, the name of what a financial provider was to be called also changed.
When Spectrem Group asked investors what they preferred their primary financial advisor be called, 72% indicated that “financial advisor” was their preferred title. In second place, but far below “financial advisor” was “financial planner” at 31% and “wealth manager” at 29%.
Another important consideration for financial providers is the name of the corporate unit that services investment and financial services clients. When Spectrem asked investors what title they preferred for the financial unit that was servicing their accounts, more than a third (34%) preferred the name “Wealth Management Services”.
“Financial Management Services” was preferred by 20% of investors and “Financial Planning Services” was chosen by 13% followed closely by “Financial Advisory Services” at 12%. All others fell below 10%, including “Private Client Services”, often used by banking organizations, which fell at 5%.
Financial providers and advisors may want to reassess any titles and departmental names as they move forward. While existing titles and names may not matter to existing clients, it may be a way to attract new clients.