Financial services clients want pricing clarity, advisors sow confusion.
Understandable and reasonable fees are top “wants” among investors surveyed in August 2020 by Hearts & Wallets, a financial data and analytics researcher. (For respondents with $500,000 to $2 million in investable assets, getting unbiased advice that puts their best interest ahead of that of their wealth manager is slightly more important.)
Despite being a top want, pricing clarity is not there for most clients, and customer confusion is actually rising, according to Hearts & Wallets.
In 2017, customers were unclear about pricing in 68% of savings, investing and advice relationships, the firm says. Last year, such confusion permeated nearly 75% of relationships — with 44% of customers saying they don’t know how they pay, and 29% saying they believe financial solutions are free, the firm adds.