Trust in Financial Advisors Rises Over the Decade, But Skepticism Remains Among Affluent Clients

In recent findings revealed by Cerulli, the trust level in advisors has seen a notable rise over the past decade. Institutions with a strong presence of dedicated advisor relationships, such as private banks, report high client trust levels—75% in the case of private banks and 65% for full-service advisory firms. Comparatively, channels where such relationships are less common show significantly lower trust figures; retirement plan providers, for instance, have a trust level of just 54%. However, skepticism remains a concern, with 40% of affluent clients doubtful of whether their financial providers truly act in their best interest. This skepticism appears linked to uncertainties about the quality of recommended products. Despite this, Cerulli suggests that a solid advisor-client relationship can help bridge the trust gap, with the method of communication—be it in-person or online—playing a critical role. Read more.