A new report by EY has highlighted a mismatch between how wealth managers and their clients perceive the advisor's role.

The view held by most wealth managers, particularly in Switzerland, that the advisor is the most decisive factor determining a good customer experience, is not shared with clients, according to EY’s 2016 global wealth management report.

The conflict in opinion is especially stark among institutions in Switzerland where the difference stretches to 33 percentage points. EY noted that the quality of interactions with the advisor is only one of several aspects clients value more or less equally with other factors such as self-service and digital capabilities. In Switzerland, only 26 per cent of clients said they were unwilling to use automated advice services, compared with almost three-quarters of respondents who would be willing.

The report, titled The experience factor: the new growth engine in wealth management, is based on a survey, conducted by Oxford Economics, of more than 2,000 wealth management clients and 60 wealth management senior executives globally. 

In general, clients and firms are aligned in their view of client experience, with a couple of exceptions. For instance, clients are eager for a new level of transparency that includes rating their advisors and connecting with similar clients in public forums. In addition, clients are significantly more open than firms to adopting digital channels for wealth advice, not just service.

“In an industry where advances in technology, new types of competition and client expectations are changing rapidly, firms that challenge traditional norms while remaining true to their core value proposition will be better positioned to succeed. Delivering a comprehensive client experience is the linchpin that will make or break a firm in this wealth management landscape,” said Olaf Toepfer, partner and banking leader at EY Financial Services Switzerland.

In other findings, a noteworthy 40 per cent of all clients would switch wealth managers under the right circumstances. Loyalty is weakest among younger generations (almost 80 per cent of 18-34 year-olds could be persuaded to try elsewhere) and wealthier clients (close to 70 per cent of high and ultra-high net worth individuals would consider a switch).

Almost three-quarters of clients surveyed have relationships with multiple wealth managers and 57 per cent of these would be willing to consolidate their assets with fewer wealth managers for reasons including better pricing, better portfolio returns, and breadth of products and services.

“The rules of the game have changed. In order to attain growth, managers must now learn to compete with man, machine and hybrid-based firms to retain and attract new assets,” said Bruno Patusi, partner at EY Financial Services and survey leader for Switzerland.