Statements Can Strengthen Client Relationships

Account statements that are informative and easy to read may be an effective means for financial services companies to strengthen their relationships with affluent individuals who make their own investment decisions.

Two-thirds (66%) of self-directed investors say the account statements they receive are the single most important tool available from their providers. Informative and easy-to-read statements outrank information about economic and market developments (46%), advice tools (37%), personalized communication materials (31%), modeling capabilities for asset allocation and portfolio analysis (31%) and seminars (8%).

Despite their importance, account statements are confusing and filled with irrelevant information, investors say.

In focus groups conducted by Spectrem Group, investors generally gave poor marks to the statements they receive from brokerage, trust and mutual fund companies. Investors also are put off by multiple statements from financial services companies; they say providers often fail to combine multiple accounts on one statement or even to send multiple statements in a single mailing.

For many providers, the problem lies in accounting systems that weren’t designed to generate consumer-friendly statements. Modification or replacement of those systems would enable providers to improve the quality and appeal of account statements.

While account statements may not be a determining factor in the choice of a provider, investors who appreciate and come to rely on that tool would be less inclined to switch providers.

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