1. A disconnect exists between financial advisors and Gen D investors regarding perceptions of investor knowledge, investment style preferences, and the strength of their relationships. Advisors overestimate investor knowledge and preference for aggressive investing. 2. Digital and social tools can help address eroding investor trust by allowing for more frequent client interactions and education. However, advisors overestimate client openness to these channels. 3. Tech-savvy advisors who effectively use digital tools are seeing success in client acquisition, retention, and asset growth, validating the importance of these channels for engaging Gen D investors.

1. Closing the Gap
How Tech-Savvy
Advisors Can Regain
Investor Trust

2. Page 2 | How Tech-Savvy Advisors Can Regain Investor Trust

3. How Tech-Savvy Advisors Can Regain Investor Trust
Accenture recently released key findings from our research A tandem Accenture study of financial advisors revealed a
on an emerging US investor population coined Generation D Gen D advisor profile that closely corresponds to the investor
(Gen D), where the D stands for Digital. This heterogeneous segment. In fact, 75% of advisors currently share the same
group—which spans multiple demographics and represents command of digital technology as Gen D investors, integrating
more than 75 million people with $27 trillion in assets2 —is use of digital and social channels into their daily lives. The
differentiated by their broad adoption of technology, particularly majority (60%) has daily contact with clients through social
in their deeply ingrained use of digital and social channels in media, some likely flouting their firms’ current policies against
almost every aspect of their lives. this type of activity. With 54% citing that they found or
converted clients using these channels, it’s clear that the tech-
These digital behaviors will have a growing impact on the
savvy Gen D advisor realizes the importance of digital tools in
relationships these investors have with financial institutions
attracting and retaining clients, and understands that this is
and advisors—relationships that are currently undermined by
increasingly becoming a key differentiator for success.
a lack of trust in the financial system. This is particularly true
for the Millennials of Gen D, who will become an increasingly
key demographic as their income and assets grow over time.
Chart 1. Financial Advisor Participants by Business Type or Company Division Accenture Research
A total of 400 US financial advisors
(FAs) took part in Accenture’s online
Private Client Office/ 28%
Multi-Family Office/
survey, conducted in Fall 2012. These
29%
Single-Family Office
participants included 250 brokerage/
26%
Independent 17%
wirehouse/bank FAs and 150 who were
independent or represented a regional
Broker/Dealer 16%
bank or insurance firm. There was a
19%
Direct 10% 70/30 mix of male and female respondents,
12% with an age cohort breakdown of
6% 26% Millennials, 48% Gen-Xers, and
25% Boomers. Their experience averaged
10 years, five with their current firm.
Wirehouse 10%
A national firm with a 11%
Requirements for participation included
large advisor force
7%
full-time employment as an FA selling
investment products, a minimum of
Insurance 10%
Broker/Dealer 10%
12% two years’ industry experience in a
similar capacity, and a currently active
client roster.
Regional 7%
Broker/Dealer 7%
8%
Bank 7%
Broker/Dealer 7%
7%
Dually Registered 6%
Advisor 6%
8% Total FAs (n=400)
Tech Savvy (n=300)
RIA 4%
Non-Tech Savvy (n=100)
3%
7%
Page 3

4. Overall, the research provided a number of revelations regarding the relationships between
Gen D advisors and their clients, which can be summed up in three key learnings.
1. A surprising disconnect exists
In comparing investor and advisor to investors are often perceived as FAs also were found to overestimate
responses to our research questions, promotional—and possibly beyond their the strength of their relationships with
Accenture identified significant perception level of investment knowledge. Investors clients, while underestimating the
gaps that clearly need to be addressed by are seeking education, and if advisors don’t importance of the relationship itself. This
the financial community. offer what they need, they are likely to manifests itself differently, however, with
look for that information elsewhere, the three generational cohorts within
The erosion of investor trust since the
resulting in missed opportunities. Gen D. The traditional relationship model
recent financial crisis has led to an
still seems to work well for Gen D
increased need for investors to understand In another significant disconnect between
Boomers, but Gen X-ers and Millennials
and feel in control of their investment investors and advisors, FAs tend to
tend to be less trusting and perceive their
decisions. Yet, advisors tend to seriously misunderstand their clients’ investment
relationships with advisors as less
overestimate investor knowledge, believing style, assuming their clients want to
personal, more transactional, and
42% are extremely knowledgeable about invest more aggressively than is often
primarily results-driven. (See Chart 3.)
investing, while only 12% of investors their preference. This is particularly true
actually see themselves as extremely with Millennials, who are by far the most
knowledgeable. As a result, what FAs intend conservative in their attitudes toward
as clear and valuable communications investing. (See Chart 2.)
Chart 2. The Gap in Investment Style Perceptions Chart 3. The Gap in Relationship Perceptions
(The approximate percentage of client base categorized as Conservative Investors, (The extent to which each statement describes your current relationship with your
Aggressive Investors, or Moderate Investors) clients/with your FA)
28% Takes time to 67%
know me/client
Aggressive 42% Gap -25%
13% Gap +15%
Personal 63%
relationship
34% Gap -17% 38% Gap -25%
Moderate
51% If FA moves, 49%
client moves too
31% Gap -18%
38%
Conservative Clients care ONLY 40%
36% Gap +2% about results
19% Gap -21%
Total FAs (n=400) Total FAs (n=400)
Total Gen D Investors (n=1005) Total Gen D Investors (n=1005)
Page 4 | How Tech-Savvy Advisors Can Regain Investor Trust

5. 2. Digital/social tools are becoming table stakes
Good news coming out of our research virtual meetings, online seminars, and more comfortable with the use of digital
is that the erosion of investor trust can online communities—FAs can explore the tools for connecting with clients and
be addressed through increased—and effectiveness of various digital channels referral sources. When asked whether
skillful—use of digital/social tools. They for delivering this information in an they would expect to use an internal
offer FAs unprecedented opportunities engaging environment. social network provided by their firm,
for more frequent interactions with their 85% of FAs agreed that if you build it,
Digital tools can be equally important for
clients, helping them forge deeper, they will come.
creating digital social networks within
stronger relationships. They also allow
financial firms,1 providing channels for There is a growing perception among
FAs to draw from a broader, richer
connecting FAs with specific expertise advisors that digital/social tools
referral and acquisition network.
and providing feedback on work-related will become highly functional table
Responding to their clients’ desire issues. These internal social networks, stakes for both external and internal
for investment education—and their which are becoming increasingly communications—and for current and
openness to using digital tools such as prevalent, can also help FAs become future career satisfaction and success.
Page 5

6. 3. Gen D advisors are seeing results
With real results validating their efforts, While most FAs acknowledged a number Social media utilization has also helped
tech-savvy FAs understand that they of benefits to using social media channels, FAs achieve their key professional goals.
need to employ digital/social tools to the top reasons cited included: Among all FAs surveyed, 77% affirm that
communicate effectively with Gen D it helps with client retention, 74% agree
• Getting answers to clients quickly
investors. More than half believe their that it helps them increase assets under
and easily (59%)
clients want, or even demand, digital management, and 73% say it has led to
interaction. • Increasing their touchpoints with an overall increase in client interactions.
referral sources (58%) As Chart 4 shows, tech-savvy advisors are
Their responses also demonstrate advisors
• Keeping up to date on industry news even more positive in their assessments
are having significant success using these
(58%) of how well these tools are helping.
channels for client acquisition, with
40% indicating they’ve gotten new
clients through Facebook, 25% through
LinkedIn, and 21% through Twitter.
Chart 4. Positive Assessment of Social Media
Social media Social media Social media use
has led to an increase helps with has led to assets
in client transactions client retention under management
Non-Tech Savvy (n=100)
Tech Savvy (n=300)
49% 47%
54% Total FAs (n=400)
51% 46% 53%
81% 83%
85%
19% 15% 17%
73% 27% 23% 73% 26%
77%
True Not True True Not True True Not True
for Me for Me for Me for Me for Me for Me
Page 6 | How Tech-Savvy Advisors Can Regain Investor Trust

7. Digital/social use
offers a clear advantage
Consistent and effective use of digital
tools and social channels is becoming
increasingly necessary for financial
advisors to remain relevant to Gen D
investors who already represent a large
and viable market segment. Millennials,
who are now most skeptical toward FAs,
will drive this trend as their wealth—
and importance—grows.
Financial advisors with digital savvy
are successfully using digital tools
for attracting, building, and retaining
relationships with Gen D investors. They
understand there are not only client-
facing advantages to these tools, but also
benefits inside their professional spheres.
It is critical, however, that they understand
and begin to address the perception
gaps that may be undermining their
effectiveness with investors. The use of
digital tools and social media offers solid
opportunities for delivering the financial
education their clients want and need,
and for building stronger, more robust
relationships with multiple touchpoints.
Financial firms need to evolve their
businesses to serve the needs and
preferences of Gen D investors, whose
ranks will soon dominate the total investor
population. Accenture will be releasing
detailed reports in the coming months
with implications and next steps for:
• Finding, attracting, and retaining
Gen D clients
• Evolving the customer experience to
meet their expectations, behaviors,
and preferences
• Defining the new role of FAs and
identifying new practices to help them
remain relevant in the digital age
Page 7

8. Notes Accenture
About Contacts
Accenture estimates and projections are
Population is a global management Enterprise collaboration (or social Alex Pigliucci is the global leader for Accenture
1 2
the product oftechnology services and
consulting, publicly available population collaboration) refers to the process of Wealth and Asset Management Services.
estimates from the US Census (2011 data), infusing social computing technology and alex.pigliucci@accenture.com
outsourcing company, with more
Pew Research Center data from the Pew principles within a firm—for example, Marc McCollum is the North America lead
than 246,000 people serving clients
Internet and American Life Project estimates providing advisors with internal social for Sales & Distribution in Wealth and Asset
in more than 120 countries.
of the online population (2011-2012), and networks similar to Facebook within the firm. Management Services.
Combining unparalleled experience,
the conditional incidence rates observed in Companies industry-wide are successfully marc.s.mccollum@accenture.com
comprehensive capabilities across all
the quantitative study. US Census data were using these networks to improve internal
collaboration and the way employees work Mark Newcomer is a Digital Strategy
used to estimate the size of the population
industries and business functions,
with each other while supporting customers. Architect focusing on digital marketing
that falls within the Millennial, Gen X, and
and extensive research on the world’s and social media for Financial Services.
Boomer age ranges. The resulting US population
most successful companies,
About Accenture
mark.c.newcomer@accenture.com
estimate was multiplied by the midpoint of
Accenture collaborates with clients to
the proportional estimates of online households
helpboth thebecome high-performance
from them US Census and the Pew Research Accenture is a global management consulting,
businesses and governments. The
study to arrive at an estimate of the Online technology services, and outsourcing company,
company generated net revenues of
Millennial, Gen X, and Boomer population. with 257,000 people serving clients in more
The resulting figurefor the turn, multiplied than 120 countries. Combining unparalleled
US$25.5 billion was, in fiscal year
by the conditional qualifying incidence experience, comprehensive capabilities
ended Aug. 31, 2011. Its home page across all industries and business functions,
figures from Accenture's Gen D Investor survey,
is www.accenture.com. to participate in
which required respondents and extensive research on the world’s
or fully control financial decision-making for most successful companies, Accenture
their households (which disproportionately collaborates with clients to help them
affected Millennials), required incomes of no become high-performance businesses and
less than $30k for Millennials and $75k for governments. The company generated net
Boomers and Gen X-ers, and either some revenues of US$27.9 billion for the fiscal
form of current investment (including 401k, year ended Aug. 31, 2012. Its home page is
any stock or bond) without regard for amount, www.accenture.com.
or (for Millennials) a stated intent to begin
investing in the next three years.
Asset projections were the product of median
self-reported total asset levels taken from the
survey and the population estimates. Medians
were used to mitigate the impact of the
very small, but disproportionately wealthy
respondents whose asset levels would have
skewed the projections upwards.
This document is produced by consultants at Accenture as general guidance. It is not intended to provide specific advice on
your circumstances. If you require advice or further details on any matters referred to, please contact your Accenture
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