The wealth management industry is rapidly changing with the rise of the digital era, the emergence of the next generation of clients and evolving regulations. In order to thrive in this dynamic environment, wealth management firms should ensure their advisors are properly equipped to further support clients and capture new wallet share.

The new wealth management landscape

Digital channels and self-service options like robo-advisor are available today, encouraging advisors to offer more customized, flexible and insight-driven advice. According to Accenture research, 62 percent of advisors nowadays also use social media with their clients.[1] Demand for diversified advice is rising as Baby Boomers look toward retirement and Generation X and Millennials expect socially collaborative and hybrid advice. What’s more, wealth managers are subject to constant regulatory challenges, along with increased information security needs.

Financial advisors of the future

The advisor will always be the center of the relationship with clients and investors, but the value case is changing. Hybrid advice models—which couple dedicated and partially dedicated advisors with digitally led advice—have the strongest outlook. Today’s investors expect a unique, customized experience and holistic goal-oriented advice, requiring advisors to be specialized, flexible, agile and digitally enabled.

Advisors should also have a solid understanding of the dynamic needs of emerging client bases including women and Millennials, along with the differing advice preferences across wealth tiers and demographics. Digital tools and hybrid advice models also create opportunities to prospect and service client bases that have not been emphasized or reachable in the past, leading to new ways of acquiring additional clients and growing wallet share.

In the light of these challenges and opportunities, wealth management firms could innovate and enable advisor success by following these four key steps:

  1. Assess the advisor workforce against prioritized performance indicators and industry benchmarks using analytics.
  2. Apply advisor learning best practices to financial advisors’ career planning and strategy.
  3. Enable leaders to use data-driven insights to track and navigate advisor development change journeys.
  4. Foster a culture of best practice sharing.
A holistic solution

I believe that in the emerging wealth management landscape, a successful financial advisor will be the one who accepts change as the new normal and has the capabilities, skills and culture to perform in a fast-changing environment.

Using advanced analytics capabilities, we have helped wealth management firms assess their advisor talent pool to diagnose and define targeted recommendations to enhance the sales force’s effectiveness. These analytics, coupled with learning best practices and change management, could help an organization address opportunities, build its advisor workforce in key performance areas and facilitate the advisors’ ability to provide hybrid financial advice across client demographics.

If your wealth management firm is looking to develop, adapt and enhance your financial advisor development program, email me, Christian Spitz. I’d be happy to have an in-depth conversation about our offering.

[1] https://www.accenture.com/us-en/insight-voice-financial-advisor-wealth-management