Consulting is successful if there is a personalised relationship with customers

The European financial advisory market is crossed by common dynamics and shared challenges, a panorama that Fabrizio Zumbo, Senior Specialist at Vanguard, taking stock of the company's research data on several European countries, frames in these terms: "The differences between countries are minimal and the data tell a very similar reality from one country to another, after all, we are talking about the same context: Europe". Vanguard's analysis revolves around three precise coordinates that define a sort of new consulting paradigm: personalisation, cost perception and transparency.

The first co-ordinate undermines a belief that is still deeply rooted in the industry. As Zumbo points out: "Many advisors still think that the portfolio, the return on investment, is the most important thing. In reality, it is the relationship with the advisor that is most important to clients, because it is at the service level that personalisation is demanded by clients'. However, the hyper-personalisation of portfolios, in a market where financial products offer less scope for differentiation, only risks generating higher charges and lower returns in the long run, according to the expert. The key is another, according to Zumbo: 'Customisation does not take place at the portfolio level, but is valued much more from the service experience point of view. For the investor, a customised service means having a solid, human point of reference: 'My advisor is there when I need him. I am talking to a human who takes into account not only myself, but my whole family, my holistic well-being, not only financial, who provides me with 'peace of mind''.

However, the data show a real gap between advisors' perceptions and clients' expectations of this first co-ordinated service. In the UK, almost 65% of advisors are convinced that they always offer a bespoke service, but only 28% of investors agree with this statement. This wide gap is repeated in Spain (59% versus 26%), the Netherlands (51% versus 24%), Germany (47% versus 21%) and Italia (40% versus 20%). This misunderstanding is not without consequences: the neglected relationship is the number one cause of advisor drop-out in almost all these markets, with peaks of 24.4% among the British and 21.4% among the Spanish. Moreover, the extension of the service to the entire family unit, hoped for by Zumbo to address the crucial generational transition, is still a distant goal: the delicate issue of succession was addressed by only 25.3% of investors in the United Kingdom, 16% in Germany, dropping to 10% in the Netherlands and a paltry 7% in Italia.

The second and third coordinates outlined by Zumbo, costs and transparency, are closely intertwined to define the perimeter of financial confidence. On the charges front, Vanguard's expert observes a dangerous blind spot: 'Many advisors, somewhat throughout Europe, do not consider the total cost of the investment, while clients are very attentive to this element. Vanguard's reports highlight this discrepancy: investment costs are a predominant priority for European investors, reaching a weight of 19.8% in Italia and 16.5% in the Netherlands, yet among advisors these same charges struggle to make it into the top five service priorities.

The same structural mismatch occurs for the third coordinate, transparency. "Advisors consider transparency not to be a very important factor," notes Zumbo, "but in fact investors consider clarity on costs, charges and commissions to be a very important element and it is seen in all countries. The data from the Client Connect study clearly demonstrates this: in markets such as Italia (20.6%), the Netherlands (19%), the United Kingdom (17.1%), Germany (16.8%) and Spain (15.5%), transparency always occupies the top positions among the factors most appreciated and sought after by clients. Conversely, professionals tend to underestimate its psychological and relational impact, deluding themselves that technical expertise or market results can compensate for a lack of clarity.