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Written by: Jennifer Valdez, president of Americas, and Molly McClure, Head of Marketing, US | intelliflo
Last month’s Future Proof Festival once again redefined wealth management conferences, bringing together thousands of industry professionals and experts in Huntington Beach, Calif. After days of intriguing conversations, dynamic keynotes and interactive sessions, four key takeaways emerged as common trends currently facing the financial advisory space: the need to better serve women investors, the evolving client experience, preparing for growth and the importance of integration.
More effectively engaging with female investors
Even though women represent the majority of the US population, are earning degrees at a faster rate than men and hold significant influence in household buying and investment decisions, many advisors simply don’t know how to tailor the investment experience to more effectively serve and support this influential demographic.
There are important trends that shape what women want and need out of their investment journeys. For example, women are more likely to want to align their investments with their values. They want to know what they are investing in and supporting; after all, women tend to be more philanthropic and involved in their communities. Women also tend to have different goals; they want empowerment, peace of mind and security, elements you can’t necessarily measure but feel. Another trend of note, divorce rates for women over 50 have doubled, and the average age to be widowed is now 59. Both major life events impact the way women invest and look to consume their financial advice.
Better serving women is also good for business; women are five times more likely to refer a business than men. By taking note of these trends and catering the financial advice journey accordingly, firms can better attract and retain this critical segment.
Client experience is king
As consumer expectations shift and the world starts to not only embrace but prefer a digital-first approach, it is becoming increasingly critical for advisors to invest in digital tools. As The Great Wealth Transfer looms, younger generations inheriting this wealth are more likely to gravitate toward firms that have sophisticated offerings, not ones that force them to frequently attend face-to-face meetings. Those advisors that are able to digitize lower value and tedious tasks will be well positioned to meet client expectations and create efficiencies while saving time and investor attention for more meaningful engagements.
Preparing for organic growth
A bold prediction shared at last month’s event is that next year will be a time for strong organic growth within the wealth management industry. However, advisors remain stretched thin, making it critical to determine how to intentionally leverage resources and technology in order to effectively scale.
Those who are able to first understand their strategic differentiators will be best positioned to effectively allocate resources and support steady growth. After all, understanding a firm’s unique value proposition helps them determine what areas, if any, should be automated or outsourced, giving advisors time back in their day to focus on the most strategic, impactful areas of their business. For many RIAs, this looks like more employee hours dedicated to advanced investment strategies, financial planning or nuanced relationship management. Those who thoughtfully leverage automation and outsourcing options have been proven to grow faster, more efficiency and with reduced risk.
The increasing importance of data integration
Integration is one of the most important areas to consider when it comes to an advisor’s technology stack. Because there are so many pieces that make up the tech stack, it’s critical that these components are able to effectively communicate with one another, sharing relevant information between the systems. Without seamless integration, efficiency, productivity and both the employee and investor experience all suffer.
While some firms look to APIs to solve this challenge, traditional APIs often require extensive integration and developer support, proving to be time and resource intensive. Instead, more are looking to work with trusted tech partners for their data setups, enabling forms to access their data directly. This can facilitate seamless and secure connections with existing business intelligence (BI) tools, resulting in efficient in-depth analyses, the creation of advanced reports and the discovery of valuable insights. Effective integration ultimately enables efficiencies, more informed business decisions and a more personalized investor experience.
These four trends indicate that the advisor landscape is changing and becoming more complex, fraught with both challenges and opportunities. RIAs that stay updated on these relevant trends and themes, consistently evaluate their business and technology strategies and invest in the modern technology infrastructure that will best suit their unique needs will be best positioned to grow and succeed.
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