Research: firms using managed accounts report higher profits
/A research project conducted by Praemium and consultancy firm Business Health across over 200 advisory firms has shown that those practices using managed accounts saw higher profitability. The benefits of advisory firms using managed accounts has been highlighted in the report.
The research involved 224 financial advice practices, of which 76 used managed accounts.
Key findings include:
Firms using managed accounts for over three years saw 79 per cent greater profit per own than those firms not using managed accounts.
For firms with over 75 per cent of their client base using managed accounts, there was a notional profit per owner 127 per cent higher than non-users.
Those using managed accounts for 75 per cent of their client base saw an 84 per cent jump in practice revenue and a 200 per cent increase in revenue per client.
Investors are spending more time with their advisers with longer client meetings and more in-depth reviews, seeing a significant improvement in client engagement in those using managed accounts.
