One-stop shopping for all financial service needs remains a
pie-in-the-sky concept that has yet to be embraced by affluent
investors, according to a new survey.
The SpectremGroup
survey found that the affluent, while in favor of the concept of
one-stop shopping, feel that it is not yet practical to limit
themselves to one financial services company.
The survey found,
for example, that 29% of affluent investors are not interested in
one-stop shopping because they don't feel enough comprehensive services
are currently available at one company.
Meanwhile, 43%
don't believe that one company can develop the expertise to serve all
their financial needs, according to the survey.
The survey found that about two
thirds of affluent investors use more than one company-with the
majority using two or three companies. The report notes that these
figures indicate that investors could potentially be open to the idea
of a one-stop shop.
"With this large
number of individuals using so few firms, one-stop shopping can be a
reality, if investors can overcome their objections regarding the
concept," wrote the authors of the report.
Overall, about 38%
of investors said they had no interest using one financial services
firm for all their financial needs, and 32% said they did have
interest. About 18% were neutral on the subject.
When asked what
kind of advisor they would seek for one-stop shopping, 40% chose a
full-service broker and 33% chose a financial planner.
Investors also
were clearly reluctant to disrupt their current accounts to go to a
one-stop shopping provider. About 78% said they were unlikely or very
unlikely to leave their primary financial firm for a one-stop shopping
company.
"While investors
may express some interest in the concept, they are not willing to make
dramatic changes from the status quo," according to SpectremGroup.
The survey was
based on information collected from 500 investors who each have
$500,000 or more in investable assets.