ThinkAdvisor recently covered a study by Wealthtender, which highlights how clients approach the process of choosing a wealth advisor.
The Wealthtender study surveyed 500 U.S. adults planning with over $100,000 to invest, as to how they would hire an advisor in the next five years. The study concludes that investors are relying on and will rely upon a mix of referrals, online research, and even artificial intelligence (AI) to evaluate potential advisors.
As reported by ThinkAdvisor, the study found that while 62 percent of respondents begin their search with referrals from family or friends, nearly half also seek recommendations from other professionals. Ninety-six percent conduct online research—reviewing directories, social media, and digital events. Nearly all (97%) plan to interview multiple advisors before deciding.
ThinkAdvisor reports that reputation plays a critical role. Eighty-three percent of participants said they would review online feedback and awards, noting that independent reviews reveal insights marketing materials cannot. About three-quarters expect to schedule introductory calls and review the advisor's website, while more than half plan to seek second opinions about those on their shortlist. Key factors influencing trustworthiness and competence include:
- Transparency in fees and services (73%)
- Professional certifications and credentials (63%)
- Positive independent reviews (61%)
- Response time to inquiries (57%)
- A professional, user-friendly website (49%)
ThinkAdvisor also reports that the survey revealed growing acceptance of AI in advisory services. Most respondents welcomed AI tools that enhance human capabilities (i.e., fraud monitoring) (77%), market data analysis (74%), drafting communications (74%), and transcribing meetings (74%). Comfort levels dropped when AI replaced human judgment outright, with less than half approving of automated investment decisions without oversight.
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