Vanguard reigning champ in J.D. Power's self-directed investor satisfaction survey

Discussion in 'Wall St. News' started by ajacobson, Apr 29, 2021.

  1. ajacobson

    ajacobson

    Vanguard reigning champ in J.D. Power's self-directed investor satisfaction survey; Wells Fargo and Merrill Edge lag
    By Ryan W. Neal
    April 28, 2021 3:52 PM
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    Investors weren’t happy as retail brokerages struggled to handle skyrocketing interest in markets and “off the charts” trading activity during the pandemic.

    More than 10 million new brokerage accounts were opened in 2020, according to J.D. Power’s latest study of self-directed investor satisfaction. Robinhood alone claimed 27% of those new accounts.

    But even that growth doesn’t account for the sharp rise in customer complaints, which have doubled since last year’s report, says Michael Foy, J.D. Power’s head of wealth intelligence. With website issues, trade processing and execution failures, and account statement errors leading the way, problems have impacted 11% of all do-it-yourself investors and 12% of those who seek additional guidance.

    As a result, customer satisfaction scores fell across the board for every company ranked.

    “There is a big risk that these firms may lose some of these clients that they have just recently gained if they are not able to provide a seamless, reliable experience. Or, at a minimum, if they aren’t able to quickly resolve the problems that happen,” Foy says.

    The J.D. Power study, now in its 19th year, is based on responses from 4,895 investors who make financial decisions without the counsel of a full-service, dedicated financial advisor. This year, the firm added new criteria involvingbrand trust and convenience — allowing an investor to manage money how and when they want — to its overall score.

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    With firms unable to compete on price thanks to nearly ubiquitous free trading, providing financial advice and education is more valuable than ever for creating a competitive advantage, Foy says. Firms that provide useful investing guidance, an automated investing tool or access to a human professional receive a 155-point boost (out of 1,000) to customer satisfaction scores among investors who seek guidance, and 148 points among DIYers.

    However, fewer than half of self-directed investors say they get this level of service from their brokerage.

    “Many new investors who maybe have gotten burned in the market [are recognizing] the value of advice and guidance,” Foy says.

    Overall customer satisfaction is highest when investors use four or more products from a single

    financial institution — such as an investment account alongside banking and a mortgage. The ability to cross-sell and create stickier client relationships is going to be key for wealth management firms moving forward, Foy says.

    “That’s where the battlefront is going, as fees are no longer a key competitive differentiator,” he says. “Which brands are better at providing a breadth of holistic financial services that a client can manage through one single, seamless digital experience?”

    Here is how J.D. Power ranked the brokerages according to satisfaction of investors who seek additional guidance. To see last year’s results, click here.

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    Seeking guidance satisfaction score (out of 1,000): 616
    Seeking guidance rank: 10
    2020 seeking guidance score: 758
    2020 seeking guidance rank: 8

    DIY investor satisfaction score: N/A
    DIY investor rank: Not ranked
    2020 DIY investor satisfaction score: 732
    2020 DIY investor rank: 9
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    Seeking guidance satisfaction score (out of 1,000): 664
    Seeking guidance rank: 9
    2020 seeking guidance score: 754
    2020 seeking guidance rank: 9

    DIY investor satisfaction score: 662
    DIY investor rank: 8
    2020 DIY investor satisfaction score: 778
    2020 DIY investor rank: 4 (tied)
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    Seeking guidance satisfaction score (out of 1,000): 671
    Seeking guidance rank: 7
    2020 seeking guidance score: 772
    2020 seeking guidance rank: 7

    DIY investor satisfaction score: n/a
    DIY investor rank: Not ranked
    2020 DIY investor satisfaction score: 773
    2020 DIY investor rank: 7
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    Seeking guidance satisfaction score (out of 1,000): 674
    Seeking guidance rank: 6
    2020 seeking guidance score: 787
    2020 seeking guidance rank: 6

    DIY investor satisfaction score: 692
    DIY investor rank: 8
    2020 DIY investor satisfaction score: 776
    2020 DIY investor rank: 6
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    Seeking guidance satisfaction score (out of 1,000): 684
    Seeking guidance rank: 5
    2020 seeking guidance score: 796
    2020 seeking guidance rank: 4

    DIY investor satisfaction score: 707
    DIY investor rank: 5 (tied)
    2020 DIY investor satisfaction score: 778
    2020 DIY investor rank: 4 (tied)
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    Seeking guidance satisfaction score (out of 1,000): 696
    Seeking guidance rank: 4
    2020 seeking guidance score: 800
    2020 seeking guidance rank: 3

    DIY investor satisfaction score: 707
    DIY investor rank: 4 (tied)
    2020 DIY investor satisfaction score: 790
    2020 DIY investor rank: 3
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    Seeking guidance satisfaction score (out of 1,000): 702
    Seeking guidance rank: 3
    2020 seeking guidance score: 819
    2020 seeking guidance rank: 2

    DIY investor satisfaction score: 727
    DIY investor rank: 2
    2020 DIY investor satisfaction score: 817
    2020 DIY investor rank: 1
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    Seeking guidance satisfaction score (out of 1,000): 705
    Seeking guidance rank: 2
    2020 seeking guidance score: 796
    2020 seeking guidance rank: 4 (tied)

    DIY investor satisfaction score: 721
    DIY investor rank: 3
    2020 DIY investor satisfaction score:
    2020 DIY investor rank: 8
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    Seeking guidance satisfaction score (out of 1,000): 736
    Seeking guidance rank: 1
    2020 seeking guidance score: 820
    2020 seeking guidance rank: 1

    DIY investor satisfaction score: 736
    DIY investor rank: 1
    2020 DIY investor satisfaction score: 800
    2020 DIY investor rank: 2
     
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  2. LuckyMac

    LuckyMac

    Really like them. I have started a small fund with them now. Really like what they do