Over half of clients will pay more for better service

EY’s Global Wealth Research Report surveyed 2,500 wealth management clients in 21 markets including Australia and found that 55 per cent of Australian clients would be willing to pay more for personalised service. This was slightly higher than the global figure of 53 per cent of clients who were happy to see higher fees for more personalisation.

EY Oceania wealth and asset management leader Rita Da Silva said the report revealed clients were increasingly looking for more of a holistic experience from their adviser relationship.

“Perceptions around the value of wealth management products and services are changing rapidly, and experiential factors are increasingly becoming key drivers of pricing,” Ms Da Silva said.

“While clients are expecting access to more of their basic services for free, they are still willing to pay extra for a tailored and more holistic experience.”

The survey found that local clients were also willing to share more information with their advisers in exchange for a more personalised experience, with 72 per cent saying they would allow their adviser access to more personal data in order to get a better service.

Additionally, Australian clients were ahead of their global counterparts in demanding sustainable investing options, with the impact investing market expected to grow to 43 per cent adoption in Australia by 2024, higher than the global figure of 35 per cent.

Around 76 per cent of Australian respondents to the survey said they had personal sustainability goals, and 41 per cent believed their wealth manager fell short in understanding their values.

Clients were split among the issues they cared most about when it came to their investments, with 47 per cent saying carbon emissions were most important when constructing an ESG portfolio, while 29 per cent said worker and human rights were important and 24 per cent nominated air and water pollution.

“Wealth managers should consider offering end-to-end ESG investing journeys underpinned by a broad choice of ESG investing options,” Ms Da Silva said.

“Tailored guidance and advice, flexible educational options, supplemental research on important topics and clear accountability that links to their wider sustainability strategies will be key.”