The survey among US advisors explored trends such as a desire for more "holistic" offerings and the rising profile of fee-based advice.

A survey of 290 financial advisors by financial software vendor Envestnet found that advisors affiliated with brokerages expect to raise their fee-based asset mix by 11 percentage points in the next five years.

The findings are included in Envestnet’s 2024 Advisor Perspectives Survey.

Advisors think the expansion of service models is the most underappreciated opportunity in the industry. Envestnet said that clients appear to concur, citing a report from McKinsey finding that nearly half of all wealth clients prefer to work with an investment professional that can holistically address financial needs across investments, taxes, banking, and life insurance.

"Despite the industry service model expansion we've seen to date, advisors surveyed identify holistic advice as the single largest untapped opportunity in wealth management today," Rich Aneser, chief strategy officer for Envestnet, said.

Advisors appear to prefer “all-in-one technology stacks.” Nearly three times as many advisors favor an all-in-one technology solution over a DIY approach using systems that enhance operational efficiency and deliver a seamless client experience, the study said. 

Time and prospecting are cited as the primary obstacles to organic growth. Despite 71 per cent of advisors considering organic growth "very important," the median advisory firm saw only 2 to 3 per cent growth in assets excluding market appreciation. 

Reflecting a growing desire to serve younger clients as generational wealth transfer continues, 36 per cent of advisors plan to add tools and advice for this segment within the next two years.