Trust Tops Price In Choosing Wealth Management Firms
By CU Today Staff —
CHICAGO--Trust and reputation matter significantly more than price when consumers choose a wealth management provider, according to new TransUnion research that also finds fraud concerns are increasingly influencing how investors evaluate financial firms.
In a survey of 1,000 U.S. consumers with at least $20,000 in investable assets, 65% of current investors ranked trust and reputation among their top considerations when selecting a provider, compared with 49% who cited fees and pricing. Among prospective investors, 58% identified trust and reputation as a key consideration. Transparency in fees and advice and reputation and brand credibility, both at 56%, were the leading factors investors said build trust.
Security is also becoming an important part of that equation. More than half of investors, 56%, said they are moderately to extremely concerned about the potential impact of fraud on their investments, according to TransUnion. The findings indicate consumers are evaluating wealth managers on more than investment performance, with fraud prevention and protection of investor information becoming increasingly important as financial relationships move online.
“Wealth managers have traditionally competed on performance, products and price. Our research shows that the competitive landscape is changing,” said Joshua Turnbull, senior vice president of financial services at TransUnion. “Investors are telling us that confidence and credibility matter as much as – and sometimes more than – traditional decision factors. As digital engagement becomes the norm, trust is no longer an intangible brand attribute; it is a measurable business asset that can influence acquisition, retention and long-term growth.
“Trust has become a defining factor in how investors choose and evaluate wealth management providers," Turnbull added. "For firms navigating a rapidly evolving marketplace, understanding what builds confidence is critical. These findings provide a roadmap for wealth managers to strengthen client relationships and drive growth, while highlighting the need for solutions that deliver the transparency, protection and personalized engagement investors increasingly expect.”
Originally reported by CU Today.