Trust and human touch key to serving HNW clients

While new technologies continue to hit the advice market promising greater efficiency, research by Praemium and CoreData has found that trust and personalisation remain paramount to client-adviser relationships.  

Recent years have seen the emergence of AI technology in the advice industry, ranging from file note tools up to digital avatars that can deliver the advice directly to the client.  

Although such tools can help advisers boost their efficiency, the study of 151 high-net-worth (HNW) advised investors found that more than a third (36 per cent) value trust as the single most important factor in their adviser relationship, surpassing their investment performance (22 per cent) and strategic advice (13 per cent).  

Notably, 42 per cent of HNW investors said they preferred in-person meetings, and want to hear from their adviser monthly, suggesting that while technology may exist to reduce the need for face-to-face contact, clients still value high-touch service.  

Despite the clear financial benefits of better performance, more than half of respondents (54 per cent) indicated that a key benefit of working with an adviser is access to help developing a long-term plan for the future, while some 49 per cent valued their adviser’s ability to understand their whole wealth situation, signalling the value of holistic advice.  

Looking at what drives client satisfaction, the study found that more than a third of HNW clients value an adviser that can help them make informed decisions (38 per cent), understand their life goals and family needs (34 per cent), and integrate wealth strategies across family members (34 per cent).  

However, Praemium explained that while there is high satisfaction among clients, there is still room for improvement when it comes to fee transparency and regular, meaningful communication.  

The firm said: “In an era where AI and digital tools are becoming more prevalent, it is the human element of advice that remains irreplaceable. Advisers who focus on building trust through personal relationships and supporting the full spectrum of holistic advice, covering tax optimisation, intergenerational wealth, family dynamics, and long-term planning, are best placed to build loyal, satisfied client bases.”  

With the study reaffirming the value of personalised service for clients, Praemium chief strategy officer Denis Orrock said there is clear evidence indicating that clients still want “truly high touch", holistic advice, despite the emergence of new technologies.  

“These advisers help clients navigate not just investments, but family, legacy, and life’s big transitions. Technology can’t replace the human element in providing financial advice, but it can help you find the time for those meaningful conversations investors really value.  

“That’s why platforms like Praemium focus on driving efficiencies in administration and portfolio management, freeing advisers to dedicate more time to where it matters most. By providing reporting and engagement tools that enable truly holistic advice, we can supports advisers to build deeper relationships and deliver the high-touch service clients expect.”