Industry-first interactive assessment shows high-scoring advisors significantly outperform low-scoring peers in total client assets managed
At a time when traditional financial planning has become table-stakes and clients increasingly seek holistic advice, Envestnet is helping financial advisors understand just how well they stack up. Through a partnership with the financial services research and advisory firm, Aite-Novarica Group; Envestnet has launched the industry’s first financial advisor assessment – The Intelligent Financial Life Advisor Practice Score – evaluating to what degree an advisor is helping clients’ achieve peace of mind and financial security regarding their ability to meet all their financial needs and goals. Critically, the assessment yields insights on how an advisor can deliver even greater value and achieve higher levels of client satisfaction to help them grow their practice.
The Intelligent Financial Life Advisor Practice Score interactive assessment can be viewed here.
“Our mission has always been to help advisors make sense of their clients’ overall financial picture and empower them to take the advice they give—and their practice—to the next level,” said Mary Ellen Dugan, Chief Marketing Officer for Envestnet. “This assessment provides advisors with a way to understand how well they’re positioned to help clients navigate their complex financial lives – through their day-to-day and more long-term financial decisions. By expanding their planning approach, advisors can help clients feel more secure in their ability to meet current and future financial obligations.”
The accompanying white paper, “Taking the Measure of Advice: The Intelligent Financial Life Advisor Practice Score and How it Benefits Advisors’ Practices,” analyzes a range of advisor behaviors and capabilities and uncovered five categories that are used to calculate the Advisor Practice Score:
For advisors, there is a high correlation between achieving a top Advisor Practice Score and managing more client assets. Advisors with a score of 80 or higher manage $443 million in client assets on average – representing 69% more assets then their counterparts who scored in the bottom quartile of the survey, with a score lower than 67.
In Q4 2021, Aite-Novarica Group conducted an online study on behalf of Envestnet with 483 professional financial advisors to examine how financial advisors are helping their clients achieve a concept Envestnet developed called “The Intelligent Financial Life” – a unified ecosystem to connect every facet of investors’ finances through data driven advice, solutions, intelligence and technology – and to quantify how advisors and their practices benefit from the delivery of this concept to their clients. The survey asked advisors detailed questions about their practice, the nature of their client base, and how they worked with clients. Through analysis of the survey data, Aite-Novarica Group made a quantitative assessment of the extent to which each advisor was delivering financial wellness to clients.
The data for the full sample has a 4-point margin of error at the 95% level of confidence; statistical tests of significance among segments were conducted at a 90% confidence level.
To learn more visit https://www.envestnet.com/intelligent-financial-life.