J.D. Power Investor Study Finds Younger Investors Show Lower Levels of Client Loyalty

Findings from the J.D. Power 2024 U.S. Full-Service Investor Satisfaction StudySM show a surge in satisfaction among clients utilizing financial advisors. U.S. Bank came out as a top performer in overall customer satisfaction. Edward Jones and Vanguard were second and third, respectively. The study surveyed 9,951 investors working directly with dedicated financial advisors or teams from January 2023 through January 2024. 

The study showed an 8-point increase in a year-to-year comparison of investor satisfaction, with an overall score of 735 out of 1,000. However, affluent Millennial investors with more than $1M in investable assets aren’t as committed to their financial advisory firms, and over one-third of them (36%) state they are likely to switch firms over the next 12 months, indicating a lack of loyalty compared to other generations. 

“It is conventional wisdom that investor satisfaction tracks closely with stock market performance, but for advisors who want to build long-term, sustainable relationships that can weather good markets and bad, they will need to build a deeper level of engagement with clients,” said Craig Martin, executive managing director and global head of wealth and leading intelligence at J.D. Power. “This is especially true among the younger segment of investors, who show lower levels of client loyalty than investors in other generational groups. Advisors will need to adjust their approach to meaningfully connect with younger investors or risk a major outflow of assets in coming years.” 

The study’s findings also highlighted the growing significance of technology in the financial advisory sector. Digital solutions have enhanced advisor efficiency and fostered proactive client engagement. Advisors who prioritize digital literacy and engage with clients on their preferred digital channels reported higher levels of investor satisfaction compared to those who neglect it. Furthermore, as AI-enabled investment advisory solutions gain momentum, advisors should differentiate themselves by delivering personalized guidance tailored to individual client needs and long-term goals.  

For more information about the U.S. Full-Service Investor Satisfaction Study, visit:
https://www.jdpower.com/business/wealth-management-platform   

 

Read more on Loyalty360:   

J.D. Power: Digital Engagement Drives Customer Satisfaction In Auto Lending 

Tailored Financial Advice Drives Customer Engagement, J.D. Power Study Finds 

Next Generation Customer Loyalty: 2024 Loyalty360 Brand Marketer Research 

Recent Content