Maximizing time with clients

Wealth managers who focus their time on high-impact client-facing activities and redistributing other responsibilities may help fuel growth.

We have seen that a growing practice often places constraints on wealth managers’ time, which can overwhelm them and subsequently lessen the client experience. We believe teams must vigilantly safeguard their time and capitalize on opportunities to redirect their focus.

Cerulli Associates analyzed how financial professionals manage their schedules across a range of categories. Currently, on average, wealth managers report spending the majority 53%) of their time on client-facing activities and client service problems. They also dedicate an average of 22% of their time to administrative activities (e.g., operations, compliance, paperwork).¹

In a capacity-constrained environment, we believe wealth managers need to think through how best to allocate themselves across functions. Prioritizing value-add client-facing activities may help maximize time engaged in revenue generation. Increasing productivity – and decreasing time spent on administrative tasks – is more likely, in our view, to grow AUM.

Wealth management practices can use technology to automate workflows and streamline standard client service processes and communication procedures (e.g., onboarding, account transfers, activity alerts). Automation may reduce the administrative burden on senior team members.

Here's what the Practice Innovation Index reveals about practice team member roles and responsibilities.²

Additionally, we believe wealth managers should consider ways to strategically delegate tasks to junior team members. Freeing up senior staff potentially gives them greater control over their time and lets them provide better client service. Letting go of some day-to-day administration can be difficult, but improving client service may enhance client relationships, which could possibly sustain the growth of a practice.

Senior team members in practices with at least $500 million in AUM and those that serve a core market above $5 million spend the least time on administrative activities.¹ These practices are most likely to adequately staff themselves with specialists and admins whose responsibilities are defined. Moving upmarket is one of several potentially effective ways to increase productivity, but it requires significant expertise and infrastructure to service HNW investors’ more complex problems and investment needs.

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