Press release - B2B media A third of advisers target growth from existing clients - is share of wallet the blind spot?

• New research from NextWealth and Aegon finds that over a third of UK advisers plan to increase existing clients’ assets under their advice in an effort to grow their business organically (36%).
• However, only a quarter of advisers are tracking their ‘share of wallet’ (26%), representing a possible missed opportunity to secure a greater proportion of clients’ investable assets and unlock untapped value.
• Advisers who have a formalised profile of their ideal target clients are up to five times more likely to track share of wallet, highlighting how clarity on who you serve can support growth of both existing and new clients.

Featuring the views of over 200 financial advice professionals, NextWealth and Aegon’s newest research guide, Organic Growth for Financial Advice Firms, has revealed that UK advisers may be missing a helpful opportunity when looking to grow their businesses.¹

According to the research, over a third of advisers want to bring a greater proportion of their existing clients’ investable assets under their advice (36%). This could allow them to benefit from higher revenue generated by advice charges, but also enable advisers to prepare and execute more tailored and coordinated financial plans.

However, despite the desire for growth from within their existing client base, the data also revealed that only a quarter of advisers are currently tracking the key metric of share of wallet (26%). By understanding how much of a client’s investable assets they already advise upon, advisers could unlock untapped value, opening up more advice opportunities and better outcomes for their clients, helping their business to grow.

Advisers who have a formally defined profile of their ideal target clients are twice as likely to track share of wallet (50%) than those who have an informal idea (26%), and five times more likely than those who have no target client profile (10%). This highlights how a greater understanding of who you serve can create further opportunities for growth among existing clients and in attracting new ones.

More insights into how UK advisers are looking to grow their business organically, as well as tips for making it happen, can be found in the full Organic Growth for Financial Advice Firms guide – click here.

Stephen Crosbie, Managing Director – Adviser Platform at Aegon UK, comments on the value of tracking share of wallet to advisers and their clients:

“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.

“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, adds:

“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. That insight gave them the confidence to have more of those conversations, and clients have responded positively.”