The slight improvement in the economy in 2013 perhaps prompted Millionaire investors to have greater approval of financial providers over their 2012 opinions, according to a Spectrem study.
The report – Asset Allocation, Product Ownership and Perceptions of Providers – shows that 72% of Millionaire investors consider banks a stable financial provider, a jump of 6% over the 2012 perception.
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Similarly, approval of full service brokers went up from 69% to 71%, and mutual fund companies were given the nod by 71% to 70% in 2012. Accounting firms were selected by 67% of Millionaires, a 2% increase from 2012.
Of the top five provider types, only trust companies dropped in regard from 69% to 67%.
The Spectrem study looked at investors from three wealth segments. The Millionaire segment includes investors with a net worth between US$1 million and US$5 million Not Including Primary Residence.
Banks remained the provider type most likely to meet the needs of a Millionaire investor. Sixty-six percent of Millionaires selected banks, while 61% picked accounting firms, 57% said law firms and mutual fund companies could meet their needs, and 56% picked full service brokers.
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By GlobalDataEighty-eight percent of Millionaires report that they consider banks as a financial provider, while 84 percent chose insurance companies and 80% selected accounting firms. Only 36% selected trust companies as a type of financial provider they are familiar with.
But Millionaires see independent financial planners (91%), law firms (90%), accounting firms (90%) and independent investment advisors (90%) as the types of firms that offer personalized services. Online brokerage firms were selected by only 35% of investors for personalized services.
When asked to select the types of providers that offer talented advisors, accounting firms, law firms and full service brokers were selected by 84%. Again, the bottom of the barrel was online brokerage firms, which only 47% of Millionaires saw as a source of talented advisors.
Full service brokers were the top provider selected for offering innovative products and services. Sixty-three percent said full service brokers, followed by independent investment advisors (60%), independent financial planners (59%) and online brokerage firms (56%). Law firms (27%) were considered the least innovative provider.
