Around a third of investors have sacked the company that manages their money in the past two years, according to data from a consultancy working in the sector.
Research by Compeer suggested there has been a 20 per cent increase in clients switching wealth manager over the past three years.
In the survey, 'wealth managers' include discretionary fund managers, private banks and other firms which exclusively make investment decisions for clients, though not traditional advisory businesses.
Clients contemplating ditching their wealth manager said a significant reduction in fees would be the key to them switching, with a fee cut of more than 20 per cent to switch.
The data suggested investment performance was cited by 22 per cent of those surveyed as being the most important consideration when choosing a wealth manager.
The level of fees and quality of service was cited by 14 per cent of respondents as being the most important consideration.
James Brown, head of client services at Compeer, said adoption of digital technologies in the wealth management industry has been slow, but is important for clients.
He said: “Digital capabilities are a key consideration for many investors, with over two thirds of those asked (66 per cent) rating the digital offering of their main provider as either ‘good’ or ‘excellent.’
"Over half (58 per cent) currently access their investment portfolio online and a fifth (22 per cent) via mobile."
However, the Compeer research suggested many investors are still slow to adapt a multi-channel approach, with 43 per cent saying they have access to their portfolio via mobile but don’t use it.
For those where a mobile application is not currently available only 21 per cent suggested that they would like one.
Mr Brown added: “The digital revolution has had a much slower impact in wealth management than in other industries with many traditional firms still struggling to adapt.
"But with so many investors more empowered to compare and contrast providers, it is essential that wealth managers embrace new capabilities – be that by offering access to portfolios via mobile, or deep-diving into newer, more advanced technologies.
"Wealth managers need to future-proof now or they risk missing out on the next generation of investors who have grown up organising every aspect of their lives online and are used to that convenience.”
Compeer surveyed 1,000 end-investors via an online questionnaire. These investors ranged from mass affluent to high net worth individuals.
David.Thorpe@ft.com
