Nearly six-in-ten (57%) of wealth managers are turning away clients because they fall below their service threshold or lack assets.

According to research from fintech Nucoro, the average wealth manager turns away 71 clients every year. In addition, 33% of respondents stated they had have had to turn away more clients now than they did three years ago.

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Only 2% of wealth managers said they are turning away fewer potential clients and 49% claimed that the number hasn’t changed.

While a fifth (20%) of wealth managers allow clients with less than £10,000 in assets to invest, most of them need a higher figure. 36% require assets between £50,000 and £100,000, 24% between £100,000 and £250,000, but 11% require over £250,000.

Nikolai Hack, COO and UK MD of Nucoro, commented: “Wealth managers are facing growing costs through increased regulation and compliance issues, and margins are also coming under pressure as fees fall. This means more wealth managers are choosing to only work with clients with larger investment portfolios and this is adding to a growing ‘advice gap’, where retail investors are finding it harder to secure the help they need to manage their investments.

“Greater digitisation will help wealth managers reduce their costs, improve their offerings and take on more clients.”

The research was conducted with market research firm PollRight and interviewed 53 wealth managers in September 2019.

Nucoro focuses on building wealth management propositions, from client onboarding to portfolio construction. The technology behind it powers the retail investment platform Exo Investing.

Just under half of wealth management clients under the age of 55 “have considered switching, or already switched, wealth managers in the past”, said another report.

Of the 272 investors surveyed by Aon (formally Scorpio Partnership) for Appway, 23% of those over the age of 67 said they would switch wealth manager. However, that figure more than doubled to 49% for HNWIs aged below 55.

Indian HNWIs are the least loyal: 30% said they had switched wealth managers in the past. The figure was 18% for German and 12% for UK and US HNWIs.