In the latest assessment of investor satisfaction conducted by J.D. Power in 2024, U.S. Bank ascended to the forefront among investors utilizing comprehensive financial advisory services, dethroning Charles Schwab, the previous leader. Schwab witnessed a dip in customer contentment in this survey.
Achieving an impressive score of 761, U.S. Bank led the pack in the overall customer satisfaction index. Schwab followed with a score of 733, marginally below the study's mean score of 735, marking a decline from its previous year's score of 752. The satisfaction index gauges investor contentment across various facets, including trust, personnel, product offerings, value, wealth management services, resolution of issues, and digital prowess.
The year 2023 proved challenging for Schwab, despite a generally buoyant financial market. Notable was the exodus of clients transferring funds from the firm's low-interest default sweep accounts. Additionally, Schwab's integration of T.D. Ameritrade accounts into its platform in September elicited some technological grievances.
A spokesperson for Schwab expressed confidence in the firm's ability to deliver an exceptional client experience. This confidence is underpinned by robust growth among high-net-worth individuals, favorable engagement with wealth management and advisory services, and commendable client promoter scores.
Schwab prides itself on its proactive stance toward client feedback, constantly refining its services to align with client needs. This commitment is evidenced by recent accolades from notable publications, including Investor’s Business Daily and US News.
In the preceding year's survey, U.S. Bank had scored 720, trailing behind the average, after a year marked by subdued client satisfaction. This was largely attributed to the downturns in stock and bond markets in 2022.
The 2024 survey revealed an overall investor satisfaction score of 735 with full-service investment advisors, an improvement from the previous survey. However, a notable area of concern emerged among young affluent clients, particularly millennials with assets exceeding $1 million, a significant portion of whom indicated a propensity to switch firms within the following year.
Craig Martin, J.D. Power's Global Head of Wealth and Lending Intelligence, emphasized the imperative for advisors to recalibrate their strategies to resonate with younger investors, cautioning against the potential exodus of assets in the near future.
Other top contenders in the satisfaction rankings included Edward Jones, Vanguard, UBS, and Raymond James, capturing the second to fifth positions, respectively. At the lower end of the spectrum, firms like Prudential, Lincoln Financial Group, LPL Financial, TIAA, and Equitable found their places.
The survey, now in its 22nd year, canvassed nearly 10,000 investors engaged with financial advisors or advisory teams from January 2023 through January 2024, offering insights into the evolving dynamics within the wealth advisory landscape, particularly for the RIA community.
