CHICAGO — Trust and reputation are more important than fees and pricing when consumers choose a wealth management provider, while concerns about fraud are increasingly influencing how investors evaluate financial firms, according to new research from TransUnion.
The study, based on a survey of 1,000 U.S. consumers with at least $20,000 in investable assets, found 65% of current investors ranked trust and reputation among their top considerations when selecting a wealth management provider. That compared with 49% who identified fees and pricing as a top factor.
Trust and reputation were also the leading consideration among prospective investors, with 58% citing them as important, TransUnion said.
The findings come as wealth managers face increased competition to attract and retain assets, particularly as wealth transfers to younger generations and investors increasingly interact with financial firms through digital channels.
Key Findings
Among the new survey’s key findings, according to TransUnion:
- 65% of current investors ranked trust and reputation among their top factors when choosing a wealth management provider.
- 49% cited fees and pricing as a top consideration.
- 58% of prospective investors identified trust and reputation as a key factor in selecting a provider.
- 56% of investors cited transparency in fees and advice as a leading driver of trustworthiness.
- 56% identified reputation and brand credibility as a leading driver of trust.
- 56% said they are moderately to extremely concerned about fraud affecting their investments.
The research found trust is increasingly tied to specific experiences investors have with wealth management firms rather than simply a company’s name or investment performance.
TransUnion said investors want providers that demonstrate transparency, communicate effectively, understand their needs and protect their identities, accounts and personal information.
‘Particularly Important’
Fraud prevention is becoming a particularly important component of that relationship as more wealth management interactions move online, according to the company.
“Wealth managers have traditionally competed on performance, products and price. Our research shows that the competitive landscape is changing,” Joshua Turnbull, senior vice president of financial services at TransUnion, said in a statement. “Investors are telling us that confidence and credibility matter as much as — and sometimes more than — traditional decision factors.”
Turnbull said the continued shift toward digital financial services is making trust increasingly important to firms’ ability to attract and retain clients.
“As digital engagement becomes the norm, trust is no longer an intangible brand attribute; it is a measurable business asset that can influence acquisition, retention and long-term growth,” he said.
Competition for Investor Relationships
The latest findings build on earlier TransUnion research indicating that wealth management firms face a potentially significant retention challenge, the company said.
In previously published research cited by TransUnion, one in four investors said their financial providers were not doing enough to support their needs. The company also reported that 46% of high-net-worth investors planned to change wealth managers or add a new wealth management relationship within 12 to 24 months.
TransUnion has also cited research showing 66% of investors wanted greater personalization from their wealth management providers.
The Consequences
Those findings suggest the consequences of failing to establish trust could extend beyond customer satisfaction and affect whether firms retain assets and client relationships.
TransUnion said its latest research also examines how expectations differ by generation and life stage, an issue that could become increasingly important as wealth is transferred between generations.
The company said wealth management firms may need to demonstrate trust throughout the investor lifecycle rather than concentrating on earning confidence when an account is opened.
Although digital capabilities remain important, investors increasingly value transparency, accessibility and protection throughout their interactions with wealth management providers, according to TransUnion.
Opportunities for Differentiation
The company said that creates opportunities for firms to distinguish themselves by combining personalized communications and digital engagement with fraud and identity protections.
Wealth managers that provide clear communications, improve client interactions and demonstrate strong protections against fraud and identity-based threats may be better positioned to strengthen customer loyalty and attract new business, TransUnion said.
“Trust has become a defining factor in how investors choose and evaluate wealth management providers,” Turnbull said. “For firms navigating a rapidly evolving marketplace, understanding what builds confidence is critical.”
He said the findings provide wealth management firms with guidance for strengthening client relationships while underscoring investor expectations for transparency, protection and personalized engagement.
TransUnion, headquartered in Chicago, is a global information and insights company with more than 13,000 employees operating in more than 30 countries. Its businesses include credit information, marketing, fraud prevention, risk management and advanced analytics.
