Capacity issues emerge for advisers as client numbers soar, Nucleus census finds
Capacity issues emerge for advisers as client numbers soar, Nucleus census finds
Nucleus users saw average client numbers rise by 21% in the last year to 149, with one in five expecting significant growth to continue throughout 2018, the wrap platform’s latest survey has found.
However, while adviser firms are experiencing fantastic growth, the increased demands this also brings means capacity issues are hitting home for some. 40% of users said they spent less than 20% of their time with clients, while it was found that clients most valued the contact time they had with advisers (making sense of it all and financial planning).
Nucleus surveys its users every year for its census, which is designed to both engage with its users and ensure the platform is delivering what its clients need. Asking a series of questions about advisers’ businesses, clients, and their views on the industry, the census helps advisers gauge their own progress, as well as tackle issues which might be keeping them up at night.
As client numbers increase, the survey also found that the average values available to invest are also rising. More than double the proportion of clients have more than £500,000 to invest, compared to 2017’s census.
These increases are forcing firms to ensure their service proposition is geared up to match the pace of growth of their business, particularly in a period where some firms are increasing ongoing fees and client expectations are ever rising. This is recognised by Nucleus users as almost three quarters (74%) of respondents said their clients have at least a moderate expectation of digital engagement with their investments.
Barry Neilson, chief customer officer at Nucleus, said: “The growth adviser firms are currently seeing bodes really well for the future. Not only are client numbers and assets going up, but many have recognised the need to engage with them digitally, something that will appeal to future generations as wealth is passed down.
“Advisers must realise though that they cannot get complacent, especially as capacity issues begin creeping in. Clients have big expectations for the quality of service they receive so the proposition must reflect this. Many will consider integrating technology into their businesses more, while others will look to outsource functions so they can focus more on financial planning.
“Our goal is to create and maintain long-term relationships with our advisers, allowing as much of the burden to be lifted as possible. Research like this allows advisers to assess their own businesses and compare against other Nucleus users, meaning they can take on the challenges that the market currently presents and offer an even better service to their clients at a period where time is valued.”