Research from Aegon and NextWealth found that more than a third (36%) of advisers were looking to manage a greater share of their existing clients’ investable assets.
Despite this, only a quarter (26%) were tracking share of wallet, which measures how much of a client’s assets an adviser already manages.
The data also found advisers with a set profile of their ideal client were twice as likely to track share of wallet (50%) compared to those with only an informal idea (26%), and five times more likely than those with no profile at all (10%).
This showed that understanding target clients could help advisers spot opportunities for growth within their current client base.
Stephen Crosbie, managing director – adviser platform at Aegon UK, said: “There are lots of elements that go into building and deepening a relationship between an adviser and their client – from the core fact find and attitude to risk, to the more personal aspects like understanding their savings goals and life beyond the economics.
“Although it might not seem like it at first, the concept of share of wallet could represent a considerable opportunity to improve both of these aspects.
“From a purely advice-led perspective, tracking share of wallet enables advisers to spot potential strengths and opportunities or gaps and threats within their client’s entire portfolio, empowering coordinated plans, informed decisions and possibly better financial outcomes.”
Crosbie added: “However, share of wallets greatest opportunity might lie in what it represents from a more personal relationship point of view.
“It shows a willingness to understand the client more deeply and where their priorities lie, which can go a long way in showcasing how you’re putting the client and their complete financial wellbeing above all else.
“This may strengthen trust and open new conversations that allow you to then bring their wider assets onboard and make those better decisions.”
Heather Hopkins, CEO at NextWealth, said: “Good management information is the foundation of strong businesses and strong client relationships.
“The firms that use their data well can see clearly where they add the most value.
“One firm told us their data showed the most successful client relationships were those where they managed all of a client’s investments.”
Hopkins added: “That insight gave them the confidence to have more of those conversations, and clients have responded positively.”
