Advisors who compete primarily on price may be missing the mark, according to new research from TransUnion. The Chicago-based data and analytics firm surveyed 1,000 U.S. consumers with at least $20,000 in investable assets and found that 65% rank trust and reputation among their top considerations when choosing a wealth manager, compared with 49% who cite fees and pricing. Among those actively shopping for a provider, 58% put trust at the top of their list.
The findings suggest a strategic pivot for advisory firms. "Wealth managers have traditionally competed on performance, products and price," said Joshua Turnbull, senior vice president of financial services at TransUnion. "Investors are telling us that confidence and credibility matter as much as – and sometimes more than – traditional decision factors."
Transparency emerged as the clearest driver of trust. Investors pointed to clear communication about fees and advice, along with brand credibility, as the two leading factors shaping whether they consider a firm trustworthy, each cited by 56% of respondents. Fraud protection also looms large: 56% of investors said they are moderately to extremely concerned about how fraud could affect their investments, a signal that firms slow to invest in identity and account security may struggle to retain skittish clients.
The TransUnion results echo a recent Gallup study conducted with Edward Jones, which found that while 73% of Americans rely on their own internet research for financial guidance, only 32% turned to a professional advisor in the past year. Yet advisors topped every other source when Gallup asked about confidence in financial expertise: 79% of Americans expressed at least some confidence in advisors' expertise, more than double the share who said the same of AI tools. Finance professors earned at least some confidence from 64% of respondents, relatives and family members from 62%, and friends or colleagues from just over 50%.
The benefits of having a trusted advisor extend beyond investment returns. Gallup found that financially fulfilled adults – those whose finances support the life they want to live – were far more likely to work with an advisor than financially stressed adults, at 60% versus 14%. Younger, less-fulfilled investors leaned instead on family, friends and AI, a trend that may have implications for firms targeting younger clients.
For TransUnion, trust is a long game. The firm recommends that wealth managers strengthen engagement, communication and protection strategies across the client relationship, while helping protect investors from fraud and identity-based threats. This includes investing in robust identity verification and account security measures, as well as maintaining transparent fee disclosures and proactive communication.
The research arrives as the industry grapples with rising concerns about fraud and cybersecurity. Recent cases, such as the Missouri man charged in a $2M Ponzi scheme, underscore the reputational risks advisors face. Additionally, the broader economic environment, including the national debt's $39 trillion toll, may heighten investor anxiety about the safety of their assets.
"Trust has become a defining factor in how investors choose and evaluate wealth management providers," Turnbull said. "For firms navigating a rapidly evolving marketplace, understanding what builds confidence is critical."
Advisors who can demonstrate security, transparency and credibility may be better positioned to attract and retain clients in an increasingly competitive landscape. The data suggests that while performance and pricing remain important, they are no longer sufficient to win the battle for client loyalty.
