Product Choice Emerges as Key Advisor Retention Tool

Private banks worried about losing financial advisors may be underestimating the importance of investment choice, as access to alternative assets becomes a larger factor in where advisors build their practices, according to Cerulli Associates.

The firm found that 84% of bank executives view talent retention as a concern, including 47% who classify advisor retention as a major business risk. The findings appear in The Cerulli Report—U.S. Private Banks and Trust Companies 2026.

Compensation, technology and product availability can influence advisor movement. Product breadth ranked third among advisors’ reasons for joining their current firm, trailing access to client referrals and the firm’s reputation or brand.

Cerulli identified a disconnect between advisors and management. About 41% of advisors placed the range of financial products among their three leading reasons for joining a firm, yet only 11% of bank executives cited expanding their investment platform or product menu as a retention strategy.

“One of the largest points of disconnect between executives and their advisors appears to be regarding the importance of product choice,” said Matt Zampariolo, a Cerulli senior analyst.

Alternative investments are becoming more relevant as private banks compete for wealthy clients seeking portfolio diversification and access to private markets. Cerulli estimated that moderate-risk clients have an average alternatives allocation of about 4%, although it expects allocations to be higher at private banks and larger regional institutions with developed capabilities.

Cerulli said institutions offering greater choice could be better positioned to retain talent and support book growth as wealth becomes more concentrated.

“The best-positioned institutions will be those that embrace advisor choice and expand product capabilities,” Zampariolo said.