Trust outranks fees in wealth-manager choice, TransUnion finds

Advisors facing fee compression now have hard evidence that clients pick the firm before the price. TransUnion surveyed 1,000 U.S. consumers. Each had at least $20,000 in investable assets. Among current investors, 65% named trust and reputation among their top reasons for choosing a wealth provider. Fees and pricing drew 49%. Prospective investors leaned even harder on trust, with 58% citing it.

Trust, the survey says, builds through specific experiences. Transparency in fees and advice tied with reputation and brand credibility as the leading drivers, each at 56%. Fraud worry shapes that definition too: 56% of investors describe themselves as moderately to extremely concerned about fraud's effect on their investments. Identity protection and data security therefore become part of winning clients, not just compliance.

Joshua Turnbull, TransUnion's senior vice president for financial services, said competition on performance, products and price is giving way to confidence and credibility. The release, dated Aug. 20, lands in a week when custody pricing and referral terms dominate RIA conversation. Fidelity's rate hike and Schwab's decision to end sub-$5 million referrals have pushed fees and account minimums into the foreground.

The fraud statistic is where the survey touches RIAs directly. Investors want visible proof that a firm can safeguard their data. A principal can make that case without cutting fees: show the security controls, the billing transparency, the written breach plan.

The survey skews toward $20,000 accounts. It sits far from the $20 million mandates at the center of custody disputes, but the direction still matches. The gap between trust and fees belongs in a pitch. The fraud concern belongs in an operations review.