The financial advice sector is enjoying good health in 2022. According to results from an L.E.K. industry survey, around 70% of wealth management firms reported a 5% annual revenue growth rate before Covid-19. Around 10% of respondents even increased their service advice fees in the years preceding Covid.
We also surveyed 450 households regarding their usage of wealth management services in 2022. While 70-80% reported not currently using such services, we estimate that half of them will engage the financial advice sector within the next 10 years. The good news for firms is that most current users prefer face-to-face advice, with future users expected to share that preference in even higher numbers.
To learn more, please read our Executive Insights: UK Wealth Management: Spotlight on Value Creation.