Financial advisers and wealth managers are failing to secure business from relatives of clients who passed away, research by Oxford Risk revealed.
The behavioural finance company found that just 37% of retail investors who received “major inheritance pay-outs” over the last decade were contacted by the adviser or manager who had previously worked with their family.
This means that more than 60% of advisers are failing to follow up with their clients’ offspring once a significant wealth transfer takes place.
Of those who are contacted, more than a third (35%) decided to take their business elsewhere.
As a result, Oxford Risk believes technology may help financial advisers and wealth managers secure intergenerational clients and business.
Greg Davies, head of behavioural finance at Oxford Risk, said: “Wealth managers cannot convince all potential clients that they need their services, but clearly, they should be at least contacting family members of clients who might value support after receiving a major inheritance.
“Wealth managers and advisers that can offer more personalised communications experience a higher prospect-to-client conversion rate. Leveraging the latest technology to better understand clients’ financial personality and circumstances can help advisers and wealth managers address all clients in the ways that most resonate with them.”
