Category: Financial Services|Wealth ManagementUnited States

Younger, Do-it-Yourself Investors Seek Human Financial Advice in Uncertain Economy, JD Power Finds

2025-03-19

jillian.breska

TROY, Mich.: 20 Mar. 2025 — From robo advice and gamified investing apps to artificial intelligence (AI), each new fintech innovation has ushered in a frenzy of predictions about the declining relevance of human financial advisors. However, according to the redesigned JD Power 2025 U.S. Investor Satisfaction Study,^SM younger, value-conscious do-it-yourself (DIY) investors who were supposed to drive the transformation of the industry are actively seeking the guidance of live professional advisors in an increasingly uncertain economy.

“For younger generations of investors who’ve been exposed to digital, human and hybrid forms of investment advice during the past several years, the decision to lean into DIY or advised channels is rarely ever an either/or scenario,” said Kapil Vora, senior director of wealth intelligence at JD Power. “Increasingly, investors are using several approaches, and many younger investors who would traditionally have fallen into the DIY category are actively looking to work with human advisors. However,it is no longer enough to have a brand legacy or an array of products and services; a company must deliver value and make the experience easy for investors.”

Following are some key findings of the redesigned 2025 study:

• Younger DIY investors seek advisors: More than one-fourth (27%) of current DIY investors say they are likely to use a financial advisor in the next 12 months. The percentage of DIY investors seeking advisory relationships is highest among members of Gen Y[1] and Gen Z (37%), and lowest among those in the Gen X, Boomer and Pre-Boomer generations (21%). “We anticipate these percentages would be even higher across all generations since the close of fielding for this study, given the economic shifts of the past several weeks,” Vora said.
• Simplicity and enjoyment are top reasons for keeping DIY accounts: Among investors with DIY investment accounts, the primary reasons for maintaining those accounts are that their finances and investments are simple enough to manage on their own (41%) and that they enjoy managing their own investments/finances (41%).
• Traditional wealth management firms missing out on attracting younger investors: While interest in advisory services is high among younger investors, traditional wealth management firms are disproportionately skewed toward older investors. The percentage of investors younger than age 40 is just 11% at traditional wealth management firms vs. 20% at retirement/discount brokerage firms; 26% at banks; and 42% at fintech firms.
• Ease of doing business is critical: When it comes to the individual dimensions that drive investor satisfaction with wealth management firms, ease of doing business is one of the most critical criteria and ranks just below trust; products and services; and people as the foundation for a positive investor experience.

Study Ranking

Raymond James ranks highest in overall satisfaction among advised investors, with a score of 748 (on a 1000-point scale). U.S. Bank (738) ranks second and Edward Jones (734) ranks third.

Vanguard ranks highest in overall satisfaction among DIY investors, with a score of 704. Fidelity (703) ranks second and T. Rowe Price (691) ranks third.

The U.S. Investor Satisfaction Study is a combination of the former JD Power U.S. Full-Service Investor Satisfaction Study^SM and JD Power U.S. Self-Directed Investor Satisfaction Study. ^SM The redesigned study evaluates the experiences of investors working with a wealth management firm, in either an advised or DIY capacity in seven dimensions (in alphabetical order): digital channels; ease of doing business; people; product and service offerings; resolving problems or complaints; trust; and value for fees paid. The 2025 study is based on responses from 7,876 advised and 3,723 DIY investors and was fielded from January through December 2024.

For more information about the U.S. Investor Satisfaction Study, visit https://www.jdpower.com/business/wealth-management-platform.

About JD Power
JD Power is a global leader in consumer insights, advisory services, and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 55 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto-shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
John Roderick; East Coast; 631-584-2200; [email protected] 

About JD Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info

¹JD Power defines generational groups as Pre-Boomers (born before 1946); Boomers (1946-1964); Gen X (1965-1976); Gen Y (1977-1994); and Gen Z (1995-2006). Millennials (1982-1994) are a subset of Gen Y.

Wealth Management Clients Expect More Personalized Experience from Their Firms’ Mobile Apps and Websites, JD Power Finds

2024-11-20

jillian.breska

TROY, Mich.: 21 Nov. 2024 — As expectations for the wealth management client experience continue to evolve from being more transaction- and product-driven to a more bespoke engagement, digital apps and websites have become critical customer touchpoints. According to the JD Power 2024 U.S. Wealth Management Digital Experience Study,^SM released today, more full-service and self-directed wealth management clients than ever have come to expect tailored guidance on how to meet personal financial goals from the digital channels offered by their wealth management firms. While many firms are delivering on basic needs of transactional relationships, the majority still have a long way to go to build more personalized digital experiences that are a point of differentiation.

“The majority of apps and websites for investors are delivering the basics of a foundational digital experience with the requisite design aesthetics and core capabilities to get by,” said Craig Martin, executive managing director and global head of wealth and lending intelligence at JD Power. “Delivering at this level is the minimum threshold but the bar is being quickly raised. Failing to keep up will put firms at a major disadvantage in their efforts to drive organic growth. Leading-edge firms are delivering truly valuable experiences that offer proactive, personalized guidance and tools that support the increased focus on establishing financial plans and the tools that help investors achieve their goals. While many firms have increased their focus on planning and related tools, they are struggling to deliver on the digital experiences that provide the higher-order values that clients are being told to expect.”

Following are key findings of the 2024 study:

• Moving beyond basics of digital functionality: A majority of full-service apps (70%); full-service websites (75%); self-directed apps (73%); and self-directed websites (76%) are delivering basic foundational functionality by organizing information in a logical way to convey a clean, modern look and feel. When it comes to delivering truly valuable digital experiences, however, those numbers fall sharply. For example, just 18% of full-service apps and 14% of self-directed apps deliver a valuable user experience that includes proactive guidance, ability to set financial goals and help reaching financial goals.
• More do-it-yourself clients expect personalized guidance: Among self-directed clients, 44% say they “strongly agree” that they expect their wealth management firm’s websites and apps to help them meet their financial goals. That percentage is up from 40% a year ago. Among this group who expect these tools, 30% say they do not “strongly agree” that their firm is delivering on this expectation. Also noteworthy is that this percentage rises to nearly 80% among those who say they “somewhat agree” that they are expecting help.
• Overall satisfaction highest when digital experiences exceed basics: Overall satisfaction scores are substantially higher among both full-service and self-directed clients when websites and mobile apps meet key criteria for delivering beyond foundational levels. Average investor satisfaction is more than 100 points higher (on a 1,000-point scale) when clients indicate their experience achieves both foundational and findable experiences. Moving to the top of the hierarchy results in truly differentiated experiences, according to clients.
• Data security is crucial: Overall satisfaction scores are heavily influenced by clients’ perceptions of data security. Among full-service clients, customer satisfaction scores are 147 points lower when clients have concerns about their personal information being very secure. Among self-directed clients, scores are 145 points lower when they have concerns about their information being very secure. 

“In a world in which firms are offering no-fee trades and many of the basics of the user experience are similar from one brand to the next, the digital experience hierarchy has increasingly become a critical means of differentiation,” said Jon Sundberg, senior director of digital solutions at JD Power. “The fastest path to delivering on growing customer expectations for digital is to deliver a truly personalized level of engagement that takes each client’s unique needs and goals into account.”

Study Rankings

J.P. Morgan Wealth Management ranks highest in overall customer satisfaction with the full-service wealth management digital experience, with a score of 843. U.S. Bank (817) ranks second and Wells Fargo Advisors (805) ranks third.

J.P. Morgan Wealth Management also ranks highest in overall customer satisfaction with the self-directed wealth management digital experience for a second consecutive year, with a score of 783. Stash (751) ranks second and Robinhood (749) ranks third.

The U.S. Wealth Management Digital Experience Study evaluates customer satisfaction with the wealth management digital experience, inclusive of both apps and websites, based on four factors: visual appeal; navigation; speed; and information/content. This year’s study is based on responses from 5,871 full-service and self-directed investors and was fielded from June through August 2024.

For more information about the U.S. Wealth Management Digital Experience Study, visit https://www.jdpower.com/business/financial-services/wealth-management-digital-experience-satisfaction-study.

About JD Power
JD Power is a global leader in consumer insights, advisory services, and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 55 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto-shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
John Roderick; East Coast; 631-584-2200; [email protected] 

About JD Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info

Asset Manager-Advisor Relationship Increasingly Dependent on Easy-to-Use Websites and Seamless Digital Experience, JD Power Finds

2024-10-29

jillian.breska

TROY, Mich.: 31 Oct. 2024 — Having spent the better part of the past decade re-tooling and transforming their operations to embrace digital-first methods of client communication, investment strategy development and trade execution, wealth managers want just one thing when it comes to digital engagement with asset managers: an easy experience. According to the JD Power 2024 U.S. Advisor Online Experience Study,^SM released today, ease of doing business has emerged as a top priority—second only to investment returns—for advisors when choosing the asset managers they work with most frequently.

The study explores how financial advisors interact with asset manager websites as part of their efforts to help clients grow and manage their wealth with optimal investment products.

“Returns will always be important, but when enhancing brand perceptions and differentiating in a hyper-competitive group of asset managers who are all subject to the same macro market conditions, ease of doing business and seamless interaction between digital and traditional channels is the key,” said Craig Martin, executive managing director and head of wealth intelligence at JD Power. “A related trend this year is that the average number of asset managers used by advisors has fallen to seven after holding steady at eight for the past three years. As advisors consolidate their asset manager relationships, they are increasingly investing with those who make it easiest for them to do so.”

Following are some key findings of the 2024 study:

• Ease of doing business is secret weapon to differentiate: The primary reason advisors say they use an asset manager is returns. However, as every asset manager promises strong returns, the question to be asked is what else there is to offer in the relationship.  When returns are removed from the equation, the most important variable influencing asset manager selection is ease of doing business, with 37% of advisors saying it is their primary reason for using a particular asset manager.
• Digital interaction plays key role in ease of doing business: Among advisors who have an excellent digital experience with asset managers, 26% select them based on ease of doing business. Among advisors who have a poor digital experience, just 18% select their asset managers based on ease of doing business.
• An optimal relationship effectively blends digital and human: Less than 7% of advisors say they prefer to rely on a single engagement channel when working with asset managers. Instead, they prefer a multichannel mix that includes digital websites and apps (56%); email (70%); phone/video calls (73%); and in-person visits (55%). What is particularly noteworthy is that advisors who use an asset manager’s mobile app are most likely to use that asset manager based on ease of doing business.
• Wholesalers become front line for digital education: Wholesaler representatives responsible for managing advisor relationships are not doing enough to nurture digital adoption among advisors. More than one-third (37%) of advisors say they receive no support or guidance on using asset manager websites or apps from their wholesalers or representatives. This results in dramatically lower satisfaction with digital capabilities.

Individual scores and rankings are not provided in this benchmarking study. Firms included in the study are (in alphabetical order):

AllianceBernstein
BlackRock
Capital Group
Charles Schwab
Columbia Threadneedle Investments
Fidelity Investments
Franklin Templeton
Invesco
J.P. Morgan
MassMutual
MFS Investment Management
Morgan Stanley
Nuveen
PIMCO
Prudential Financial
State Street Global Advisors (SSGA)
T. Rowe Price
Vanguard

The U.S. Advisor Online Experience Study evaluates advisor interaction with asset manager websites based on four factors: speed; information/content; visual appeal; and navigation. The 2024 study is based on 2,329 evaluations from financial advisors and was fielded from June through August 2024.

For more information about the U.S. Advisor Online Experience Study, visit https://www.jdpower.com/business/wealth-management/advisor-online-experience-study.

About JD Power
JD Power is a global leader in consumer insights, advisory services, and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 55 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto-shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
John Roderick; East Coast; 631-584-2200; [email protected]

About JD Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info

Retirement Plan Websites and Mobile Apps Not Meeting Customer Expectations for Valuable Digital Experience, JD Power Finds

2024-09-11

jillian.breska

TROY, Mich.: 12 Sept. 2024 —As more retirement plan customers rely on digital channels for their primary means of interaction, digital experiences will be critical in supporting actions that support their future financial wellbeing and confidence. According to the JD Power 2024 U.S. Retirement Plan Digital Experience Study,^SM released today, most retirement plan digital experiences still have a lot of room for improvement. Just 21% of retirement websites and mobile apps are living up to customer expectations for a valuable digital experience, significantly lagging those of other industries and putting assets under management at risk.

“In many cases, the entire customer engagement with their retirement plan provider has become a digital experience,” said Craig Martin, managing director and global head of wealth and lending intelligence at JD Power. “Expectations for digital are heavily influenced by customers’ entire universe of digital experiences and plan providers have not kept pace with other sectors. Falling behind on digital can have very real consequences for engaging and influencing perceptions and behaviors. Financial wellness has become a critical focus for many retirement plan providers striving to be more than just a basic product provider. Customers who are digitally disengaged are very unlikely to recognize or see value in these efforts, which means a lot of wasted time and resources—as well as reduced business expansion opportunities.”

Following are some key findings of the 2024 study:

• Retirement plan digital experience lags other industries in key areas: Overall satisfaction with retirement plan digital experiences increases to 703 (on a 1,000-point scale), an 18-point increase from 2023. Despite the improvement, retirement plan apps and websites underperform those of other service industries—including insurance, automotive finance, utilities and banking—when it comes to ease of use and ability to find information. Critical gaps relate to ease of finding information, tools and other usage challenges.
• One in five digital experiences do not meet basic expectations: JD Power has created a digital experience hierarchy that assesses retirement plan website and mobile app experiences based on specific elements that define three performance levels: foundational, functional and valuable. Foundational experiences focus on basic design, security and key information access. Functional experiences center on ease of use and navigation. Valuable experiences relate to creating more personalization and delivering these experiences proactively. On both ends of the spectrum, 21% of customers’ digital experiences fail to meet the basic criteria for a foundational experience and only 21% have digital experiences that are classified as valuable.
• Strong digital experiences drive strong bottom line: The study shows that customers are nearly twice as likely to keep assets with their current provider in the event of a job change if that provider offers a valuable digital experience, and 40% are more likely to roll money over from other retirement accounts if they have a great digital experience. The digital experience also can affect customer perceptions of the retirement plan provider’s brand image.

Study Ranking

Charles Schwab ranks highest in retirement plan digital satisfaction, with a score of 753. Nationwide (739) ranks second and Fidelity Investments (734) ranks third.

The U.S. Retirement Plan Digital Experience Study, formerly known as the U.S. Retirement Plan Participant Satisfaction Study, measures customer satisfaction across four factors: information/content; navigation; speed; and visual appeal. The study is based on responses of 5,638 retirement plan participants and was fielded from May through July 2024.

For more information about the U.S. Retirement Plan Digital Experience Study, visit https://www.jdpower.com/business/financial-services/us-retirement-plan-digital-experience-study.

About JD Power
JD Power is a global leader in consumer insights, advisory services, and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 55 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto-shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
John Roderick; East Coast; 631-584-2200; [email protected]

About JD Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info

Wealth Management Apps Become Gateway to Client Satisfaction and Retention, JD Power Finds

2023-11-18

TROY, Mich.: 21 Nov. 2023 — It’s not just Millennials¹ and Gen Z with do-it-yourself brokerage accounts driving the trend toward increased use of digital wealth management tools; the digital channel has become central to the client experience for all types of investors, with mobile apps leading the way. According to the JD Power 2023 U.S. Wealth Management Digital Experience Study,^SM released today, more full-service and self-directed wealth management clients than ever are logging into wealth websites and apps, and the more often they do that, the higher their satisfaction.

“The wealth management industry has transformed during the past few years with the rise of no-fee trading and advances in technology, democratizing access to tools and sophisticated investment advice,” said Craig Martin, executive managing director and global head of wealth and lending intelligence at JD Power. “The digital experience is a crucial component of an effective client acquisition and retention strategy. The self-directed account has increasingly become the gateway through which firms build the foundation of more lucrative investor relationships. Firms that get the digital formula right are positioning themselves for long-term success.”

Following are key findings of the 2023 study:

• Apps substantially outperform websites: The overall average satisfaction score for U.S. full-service wealth management mobile apps is 776 (on a 1,000-point scale), which is 11 points higher than the average score for full-service wealth management websites (765). Among self-directed wealth management apps, overall satisfaction is 738, while website satisfaction is 34 points lower (704).
• Younger customers lean into digital advice: Clients in Gen Y and Gen Z show a significant preference for digital as their primary communication channel for advice (56%), planning (59%) and service (74%), while Gen X and Boomer clients still prefer human interaction for advice and planning.
• Overall satisfaction improves in lockstep with digital utilization: Among both full-service and self-directed investors, overall satisfaction increases significantly the more often clients interact with wealth management websites and apps. The overall satisfaction score among full-service investors who use their wealth management firm’s app on a daily basis is 798, which is 97 points higher than among those who never use the app and 53 points higher than among those who only use the app once a year.
• Large banks have a leg up on digital: Among both full-service and self-service wealth management providers, large banks perform particularly well, with Citi ranking highest in the full-service segment and J.P. Morgan Wealth Management ranking highest in the self-directed segment. This performance is likely due to the robust digital capabilities they’ve developed in their respective retail banking operations.

The U.S. Wealth Management Digital Experience Study evaluates customer satisfaction with the wealth management digital experience, inclusive of both apps and websites, based on four factors: visual appeal; navigation; speed; and information/content. This year’s study is based on responses from 6,217 full-service and self-directed investors and was fielded from June through August 2023.

Study Rankings

Citi ranks highest in overall customer satisfaction with the full-service wealth management digital experience, with a score of 798. J.P. Morgan Private Client Advisors (789) ranks second and Fidelity (783) ranks third.

J.P. Morgan Wealth Management ranks highest in overall customer satisfaction with the self-directed wealth management digital experience, with a score of 754. T. Rowe Price (736) ranks second and Robinhood (730) ranks third.

For more information about the U.S. Wealth Management Digital Experience Study, visit https://www.jdpower.com/business/financial-services/wealth-management-digital-experience-satisfaction-study.

About JD Power
JD Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
John Roderick; East Coast; 631-584-2200; [email protected]

About JD Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info

¹JD Power defines generational groups as Pre-Boomers (born before 1946); Boomers (1946-1964); Gen X (1965-1976); Gen Y (1977-1994); and Gen Z (1995-2004). Millennials (1982-1994) are a subset of Gen Y.

Asset Management Websites Not Effectively Nurturing Advisor Relationships, JD Power Finds

2023-10-31

jillian.breska

TROY, Mich.: 2 Nov. 2023 — A combination of industry consolidation, shrinking margins and digital transformation have moved the heavy lifting of investment advisor education and relationship management from fund wholesalers to asset manager websites. According to the JD Power 2023 U.S. Advisor Online Experience Study,^SM released today, many of those websites are not meeting even the most basic needs of advisors.

The study explores how financial advisors interact with asset manager websites as part of their efforts to help clients grow and manage their wealth with optimal investment products.

“There are three key criteria that asset manager websites need to meet to deliver a superior digital experience,” said Craig Martin, executive managing director and head of wealth and lending intelligence at JD Power. “Websites need to be foundationally sound from a design and usability standpoint; information needs to be easy to find and accessible; and they must effectively deliver clear, valuable information and insights. The problem is, just 17% of advisors say the asset management websites they use are delivering consistently on all three. Worse, 27% of advisors say at least some of the asset manager websites they’ve visited in the past month do not even deliver the basics for a foundational level engagement. The business effects of these shortfalls are already being felt and will only increase as digital becomes more critical for advisor engagement.”

Following are some key findings of the 2023 study:

• Digital experience directly linked to future investments: More than half (58%) of advisors say they are “extremely likely” to invest new assets with a firm in the next three months when its asset management websites deliver on the three key criteria. The percentage falls to 31% when asset management websites fail to deliver clear and valuable information. Strong future investment intent falls to just 20% when the sites are difficult to navigate and lack important details.
• Few asset managers are getting the digital formula right: More than one-fourth (27%) of advisors say the asset manager websites they use do not meet the basic foundational criteria they expect, such as presenting information in an organized manner and meeting expectations for brand appearance and website performance on elements such as speed and responsiveness.
• Digital innovation stagnates: Although asset managers have grown increasingly reliant on such websites as a first-line channel to support advisor education and relationship management, there have not been significant improvements to the web properties. Overall advisor satisfaction scores with asset manager websites declines 3 points (on a 1,000-point scale) this year to 639.

Individual scores and rankings are not provided in this benchmarking study. Firms included in the study are (in alphabetical order):

AllianceBernstein
BlackRock
Capital Group
Charles Schwab
Columbia Threadneedle Investments
Fidelity Investments
Franklin Templeton
Invesco
J.P. Morgan
MFS Investment Management
Morgan Stanley
Nuveen
PIMCO
Prudential Financial
State Street Global Advisors (SSGA)
T. Rowe Price
Vanguard

The U.S. Advisor Online Experience Study evaluates advisor interaction with asset manager websites based on four factors: speed; information/content; visual appeal; and navigation. The study is based on 2,500 evaluations from financial advisors and was fielded from May through August 2023.

For more information about the U.S. Advisor Online Experience Study, visit https://www.jdpower.com/business/wealth-management/advisor-online-experience-study.

About JD Power

JD Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
John Roderick; East Coast; 631-584-2200; [email protected]

About JD Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info

Wealth Management Apps Essential to Attracting and Retaining Younger Investors, JD Power Finds

2022-11-17

TROY, Mich.: 22 Nov. 2022 — Mobile apps and websites have increasingly become the first resources that investors consult to review their investments, make transactions and conduct research, putting the focus squarely on digital as a critical component of the overall wealth management client experience. According to the JD Power 2022 U.S. Wealth Management Digital Experience Study,^SM released today, the trend is particularly pronounced among younger investors, who have significantly higher overall satisfaction and stronger brand advocacy when they engage frequently with their firm’s wealth management app.

“Wealth management firms that want to attract and retain younger investors need to focus on continuing to improve their apps,” said Michael Foy, senior director of wealth intelligence at JD Power. “The mobile app really is becoming the center of the modern wealth management client user experience, and that’s true not just for do-it-yourself investors but also for those who work with a financial advisor. App users are engaging much more frequently with their brand and, when they have a positive experience, are also much more likely to recommend that brand.”

Following are key findings of the 2022 study:

• Apps significantly outperform websites: The overall average satisfaction score for U.S. wealth management mobile apps is 731 (on a 1,000-point scale), which is 50 points higher than the average score for wealth management websites (681). This gap is driven largely by a significant preference for apps among younger investors.
• Well-designed apps crucial for younger investors: Customer satisfaction with mobile wealth management apps is highest among members of Generation Y,¹ an average score of 760. Members of Generation Z follow with an average score of 720. Members of Generation X, Boomers and Pre-Boomers—all of whom are more likely to use their wealth management firm’s website—have lower satisfaction with mobile wealth management apps.
• Great apps drive strong brand loyalty: Top-performing mobile apps, which earn the highest levels of overall customer satisfaction, also have strong brand advocacy, as measured by average Net Promoter Scores® (NPS)² of 83 (on a scale of -100 to 100). That compares with an NPS of 73 among top-performing websites.
• Important for full-service investors too: Contrary to the perception that mobile wealth management apps and websites are primarily designed for do-it-yourself (DIY) investors,³ overall customer satisfaction scores are higher among advised investors, who are more likely to use the digital financial tools provided by their wealth management firms, including tools that help connect them to their financial advisor more efficiently and conveniently.

“Digital has become a key component of the overall wealth management customer experience,” said Amit Aggarwal, senior director of digital solutions at JD Power. “Firms that are delivering the best overall digital experience are recognizing that their apps and websites are an extension of the client relationship and can be leveraged to improve relationships with advisors, drive brand loyalty and differentiate from the competition.”

The U.S. Wealth Management Digital Experience Study, previously known as the U.S. Wealth Management Mobile App Satisfaction Study, was redesigned in 2022. The study evaluates customer satisfaction with the wealth management digital experience, inclusive of both apps and websites, based on four factors: visual appeal; navigation; speed; and information/content. This year’s study is based on responses from 6,375 full-service and self-directed investors and was fielded from June through August 2022.

Study Ranking

J.P. Morgan Wealth Management ranks highest in overall customer satisfaction with the wealth management digital experience, with a score of 728. Charles Schwab (726) ranks second and Edward Jones (710) ranks third.

For more information about the U.S. Wealth Management Digital Experience Study, visit https://www.jdpower.com/business/financial-services/wealth-management-digital-experience-satisfaction-study.

About JD Power
JD Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
John Roderick; East Coast; 631-584-2200; [email protected]

About JD Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info

¹JD Power defines generational groups as Pre-Boomers (born before 1946); Boomers (1946-1964); Gen X (1965-1976); Gen Y (1977-1994); and Gen Z (1995-2004). Millennials (1982-1994) are a subset of Gen Y.
²Net Promoter System®, Net Promoter Score®, NPS®, and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.
³JD Power defines DIY investors as those who have no advisor interaction with the primary investment firm.

Trust is Crucial in Determining Satisfaction with Mortgage Servicers, JD Power Finds

2022-07-27

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TROY, Mich.: 28 July 2022 — As a recession seems increasingly likely and mortgage loan delinquencies are on the rise, customers want to be assured their mortgage servicers are on their side. According to the redesigned JD Power 2022 U.S. Mortgage Servicer Satisfaction Study,^SM released today, customer satisfaction suffers when there is a lack of trust in the servicer.

“Mortgage servicing has always been an opaque experience for customers with the firms originating, owning and servicing the loans often being different and changing over time,” said Craig Martin, executive managing director and global head of wealth and lending intelligence at JD Power. “In a time when brand reputation, customer trust and customer satisfaction are going to be even more critical for attracting and retaining business, different business models will be put to the test in different ways. Managing to the average is dangerous. Firms that are selling the value of the end-to-end relationship and working to build customer advocates will not succeed if they are satisfied with only being technically proficient. Even for firms primarily focused on sub-servicing—an area where compliance, efficiency and resource optimization are paramount—it’s critical to realize that customer perceptions heavily influence actions and, as a result, affect the bottom line.”

Following are some key findings of the 2022 study:

• Loan transfers hurt satisfaction, erode trust for all parties: Overall customer satisfaction for mortgages that are originated and serviced by the same company is 646 (on a 1,000-point scale). That number drops 133 points to 513 when the mortgage is transferred to a servicer that is different from the originator. Likewise, customer trust in the mortgage servicer falls 145 points to 511 when a loan is transferred vs. those that are originated and serviced by the same company.  Critically, the originating firm that made the transfer is affected, too, with only 15% of transferred customers saying they are “very likely” to consider using the original lender in the future. 
• Going paperless? Trust matters:  More than half (52%) of mortgage servicing customers get a paper statement, but 43% of those customers say their primary means of reviewing their statement is via digital channels, so the paper bill isn’t used. The disconnect often goes back to trust. Among customers who have gone paperless, brand image attributes are rated significantly higher, including “can rely on lender to keep promises” and “lender provides honest communication,” compared with those who do not receive paperless statements. Among those who say they “never will” go paperless, the same brand image attributes are rated significantly lower. Servicers need to understand which customers are open to going paperless and what it will take to convert them.
• Transfers create administrative headaches for customers: More than four in 10 mortgage customers who had a loan transferred say the transfer process was not “very easy.” Among this group, problem incidence is substantially higher (27%) than the problem incidence among customers who say the process was “very easy” (12%). When the transfer process is perceived as “very easy,” satisfaction is 183 points higher than when the process is “somewhat easy,” “somewhat difficult” or “very difficult,” these customers are significantly less likely to need to interact with a live representative. Servicers need to be sure sufficient servicing information is sent from the beginning to better ensure a “very easy” transfer process to improve the customer experience and reduce call volume.

“Transparency has become the financial services industry’s favorite buzzword for a reason: customers respond favorably when brands communicate their intentions and provide clear guidance on what is happening and why,” said Tom Lawler, head of consumer lending intelligence at JD Power. “The complexity of the mortgage industry creates challenges in customer understanding, particularly when it comes to mortgage transfers. We’re entering a market environment where customer satisfaction is going to play a critical role in the success of mortgage brands, and transparency will be a big part of creating the trust that will determine business success.”

Study Ranking

New American Funding ranks highest among mortgage servicers with a score of 695. Rocket Mortgage (672) ranks second and Huntington National Bank (669) ranks third.

The U.S. Mortgage Servicer Satisfaction Study, formerly known as the U.S. Primary Mortgage Servicer Satisfaction Study, was redesigned in 2022. The study measures customer satisfaction with the mortgage servicing experience in six factors (in order of importance): level of trust; makes it easy to do business with; keeps me informed and educated; people; resolving problems or questions; and digital channels. The study is based on responses from 8,098 customers who have been with their current mortgage loan servicer for at least one year. The study was fielded in March-April 2022.

For more information about the U.S. Mortgage Servicer Satisfaction Study, visit
https://www.jdpower.com/business/financial-services/us-mortgage-servicer-satisfaction-study.

About JD Power
JD Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
John Roderick; East Coast; 631-584-2200; [email protected]

About JD Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info

Wealth Management Firms Need Advisors as Brand Evangelists to Attract New Talent, JD Power Finds

2022-07-05

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TROY, Mich.: 6 July 2022 — Long before the Great Resignation became a national phenomenon, wealth management firms were struggling to manage attrition among their financial advisors and attract new talent to the profession. According to the JD Power 2022 U.S. Financial Advisor Satisfaction Study,^SM released today, a combination of technological- and pandemic-driven disruption has exacerbated that challenge, with 15% of advisors at wirehouse firms^[1] and 7% of independent advisors now categorized as “at risk” of leaving their firms in the next two years.

“With the average age of a financial advisor climbing to 57 this year, wealth management firms that want to continue to grow must do more than just manage advisor attrition rates; they also need to actively create advisor brand evangelists who will attract the next generation of talent,” said Mike Foy, senior director of wealth and lending intelligence at JD Power. “Right now, many firms are missing the mark on developing that level of advisor engagement, but there are some clear drivers that need to be in place for it to happen. Notably, firms that are making the right investments in technology, effective marketing support, competitive products and services and have a strong top-down corporate culture are significantly outperforming the competition when it comes to advisor satisfaction and advocacy.”

Following are some key findings of the 2022 study:

• Advisor loyalty in decline: Advisor attrition risk increases this year across all categories. Wirehouse firms have the largest proportion of at-risk advisors, with 15% considering leaving their firm in the next one to two years. Among independent advisors, 7% fall into the at-risk category.  
• Tech, competitive products and culture help build advisor advocacy: Among advisors classified as brand evangelists—those with the highest levels of satisfaction and loyalty to their firms—91% say the technology offered by their firm has improved during the past two years. Likewise, 79% say their firm offers competitive products and services and 74% say their firm’s corporate leadership fosters a strong culture.
• Employee advisor satisfaction declines significantly with length of tenure: While overall satisfaction among independent advisors is relatively consistent across all advisor tenure levels, it declines significantly among employee advisors based on the length of their industry tenure. Overall satisfaction is 741 (on a 1,000-point scale) among employee advisors in their first 10 years of tenure and falls to 689 among mid-career employee advisors and to 658 among those with a tenure of 20 years or more. This represents a huge risk as experienced advisors obviously have accumulated significant assets that will very often leave the firm if the advisor departs.
• Advisors want to go back to the office: A majority (62%) of advisors say their preferred work style is either in the office most of the time (38%) or in the office full-time (24%). Overall satisfaction scores are highest among advisors who are currently working in the office full time (791), followed by those who are working in the office most of the time (778).

Study Rankings

Among employee advisors, Edward Jones ranks highest in overall satisfaction with a score of 876. Stifel (872) ranks second and Raymond James & Associates (863) ranks third.

Among independent advisors, Commonwealth ranks highest in overall satisfaction with a score of 918. Raymond James Financial Services (842) ranks second and Ameriprise (821) ranks third.

The U.S. Financial Advisor Satisfaction Study measures satisfaction among both employee advisors (those who are employed by an investment services firm) and independent advisors (those who are affiliated with a broker-dealer but operate independently) based on six key factors (in alphabetical order): compensation; leadership and culture; operational support; products and marketing; professional development; and technology.

The study is based on responses from 3,039 employee and independent financial advisors and was fielded from January through May 2022.

For more information about the U.S. Financial Advisor Satisfaction Study, visit
https://www.jdpower.com/business/resource/us-financial-advisor-satisfaction-study.

About JD Power
JD Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
John Roderick; East Coast; 631-584-2200; [email protected]

About JD Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info

^[1] Merrill, Morgan Stanley, UBS and Wells Fargo Advisors

Online Brokerage Firms Struggle to Build Loyalty among Pandemic-Era Investors, JD Power Finds

2022-04-25

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The honeymoon may be coming to an end for the tens of millions of new do-it-yourself (DIY) investors who flocked to do-it-yourself retail brokerage firms during the past few years. According to the JD Power 2022 U.S. Self-Directed Investor Satisfaction Study,^SM released today, pandemic-era investors who have opened accounts during the past three years are experiencing significantly more problems with their accounts and lower levels of customer satisfaction, resulting in brand loyalty scores that are less than half those of more tenured clients.

“Pandemic-era investors who entered the financial markets during a real gold rush period of heightened expectations, significant disruption and extreme volatility represent a unique set of challenges for retail brokerage firms,” said Michael Foy, senior director and head of wealth intelligence at JD Power. “First, they constitute a huge segment, which has accounted for about 25 million new accounts since 2020. They also tend to be younger, less financially secure and more apt to experience problems that are not currently being addressed effectively by their brokerage firms. Right now, most firms are missing the mark when it comes to delivering the level of tailored customer experience that will help them convert this next generation of investors into loyal and profitable clients.”

Following are key findings of the 2022 study:

• Pandemic-era investors experience more problems—and less resolution: Newer investors who opened accounts during the past three years are more likely than more tenured investors to experience problems, with website malfunctions and issues processing transactions being the most prevalent. Nearly one in five (19%) pandemic-era investors experienced problems within the past year, compared with 13% among more tenured investors. Among newer investors, just 84% of those problems were resolved vs. 92% among tenured investors.
• Brand loyalty of pandemic-era investors less than half that of more seasoned clients: Pandemic-era investors are more than twice as likely to switch brokerage firms than are investors who’ve had their accounts for three or more years. Just 24% of pandemic-era investors say they definitely will not switch providers, which is down 11 percentage points from a year ago. Among more tenured investors, 50% say they definitely will not switch providers. Primary drivers of attrition risk include lack of satisfaction with products, services and tools and recommendations from friends and relatives to switch providers.
• Financial health plays significant role in pandemic-era investor sentiment: Just 39% of pandemic-era investors can be classified as financially healthy, compared with 72% among more tenured investors. Specific financial vulnerabilities observed in this pandemic-era segment include challenges paying bills on time, difficulty managing debt and availability of sufficient savings to cover six months or more of living expenses. Additionally, satisfaction with their brokerage firm is significantly lower among financially vulnerable clients, suggesting firms need to do a better job of delivering content, tools and services that can help clients more effectively manage investments in the context of their overall financial lives.
• Hybrid offerings not resonating with investors: In addition to DIY investors, the study also explores those investors who—while not working with a traditional dedicated financial advisor—do interact with their firm’s financial professionals for advice (e.g., through a call center-based pool of advisors).  While the industry has been focused on how to make this scalable advice model work for the very large mass affluent market that is often not an ideal fit for a full-service advisor, average satisfaction among this segment currently is lower (708) than among either DIY (720) or full-service (744) investors. This suggests that the promise of this model has not yet been widely realized.  

“With trading fees no longer being a significant revenue driver, the big opportunity for retail brokerage firms is creating loyal clients who will deepen their relationships to include revenue-generating services that address their broader financial needs for things such as advice, cash management and lending,” Foy said. “Right now, that’s precisely where many firms are dropping the ball. They are struggling to meet their clients where they are at this point in their lives and deliver the type of personalized advice, educational tools and problem-free experiences they need to grow with their firms.”

Study Rankings

T. Rowe Price (768) ranks highest in self-directed investor satisfaction among investors seeking guidance. Vanguard (721) ranks second and Charles Schwab (719) ranks third.

Vanguard (736) ranks highest in self-directed investor satisfaction among do-it-yourself investors. Charles Schwab (735) ranks second and Fidelity (730) ranks third.

The U.S. Self-Directed Investor Satisfaction Study, now in its 20^th year, evaluates key satisfaction drivers and firm performance among both investors seeking guidance (those who don’t have a dedicated financial advisor but do have access to interact with a registered investment professional) and true do-it-yourself investors (those who do not interact with professional advisors). The study measures self-directed investors’ satisfaction with their investment firm based on performance in seven factors (in order of importance): trust; digital channels; the ability to manage wealth how and when I want; products and services; value for fees; people; and problem resolution.

The study is based on responses from 4,888 investors who make all their investment decisions without the counsel of a full-service dedicated financial advisor, and was fielded from November 2021 through January 2022.

For more information about the U.S. Self-Directed Investor Satisfaction Study, visit
https://www.jdpower.com/business/resource/us-self-directed-investor-satisfaction-study. 

About JD Power
JD Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto shopping tool can be found at JDPower.com.

Media Relations Contacts
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
John Roderick; East Coast; 631-584-2200; [email protected]

About JD Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info