So you decided to become a financial advisor. You’ve helped clients plan for retirement, invest in the stock market, and make big life decisions. But the industry is changing fast. Between robo-advisors, AI, and an aging population, the job you signed up for is transforming before your eyes. How can you adapt and stay ahead of the trends reshaping financial advisory and answer the question how do financial advisors get paid?
The good news is, if you’re willing to embrace innovation, the future remains bright. People will always need help navigating money matters and life’s big milestones. But to thrive, you must become a holistic advisor who understands each client’s unique life goals and helps them make progress in all areas of financial wellness. Technology won’t replace you, but it will enhance your practice if you’re open to new tools. And by focusing on life planning over product pushing, you’ll build deeper relationships and become a trusted partner for the long haul.
The next decade will bring big changes, but also big opportunities. Are you ready to shape the future of your field? The clients and career of your dreams are out there—if you have the vision and courage to go after them. The future of financial advisory is wide open. What role will you play?
Robo-Advisors
The rise of robo-advisors and digital wealth management platforms are shaking up the financial advisory industry. These automated investment services use algorithms and AI to help clients invest their money for a fraction of the cost of a human advisor. As more people get comfortable with technology managing their finances, robo-advisors are poised to gain a huge piece of the investment management pie.
If you’re a financial advisor, it’s time to embrace the digital age. Offering an automated investment option, even if just for smaller accounts, can help you stay competitive. Many advisors are also turning to robo-advisor technology to streamline their practices and cut costs. Using algorithms for asset allocation, rebalancing, and tax-loss harvesting lets advisors focus on high-touch services like financial planning, estate planning, and client education.
Advisors should also strengthen their online presence. Develop educational content for your website and social media highlighting your expertise and value. Build an email list to stay in regular contact with clients and prospects. Consider offering virtual consultations and online meetings in addition to in-person.
The future is digital, but financial advisors still have an important role to play. By leveraging technology to improve the client experience, enhance your services, and lower costs, you can thrive alongside robo-advisors. The key is finding the right balance of high-tech and high-touch to meet the changing needs of clients. With an openness to innovation and a focus on comprehensive financial planning, advisors and robo-services can work together to help more people achieve their financial goals.
New Skills and Services Financial Advisors Must Offer
These days, clients want more than just investment management from their financial advisors. They’re looking for a trusted partner who understands their whole financial picture and can provide guidance on everything from budgeting to insurance to estate planning.
As client needs evolve, advisors have to adapt. Many are expanding their services to become more holistic “wealth managers.” This means developing a broader range of knowledge and expertise, as well as stronger soft skills. Some of the biggest trends reshaping the financial advisory industry include:
Shifting Client Preferences and Expectations
More than ever, clients desire a personal connection and value advisors who take the time to understand their unique situations and priorities. They expect advisors to proactively provide information and recommendations tailored to their needs. Advisors now need expertise in areas like behavioral finance and financial therapy to build deeper client relationships.
Clients also want 24/7 access to their accounts and advisors. Digital communication and online account access are now the norm. Advisors have to leverage web-based platforms to share documents, schedule calls, and provide on-demand account info.
The bottom line? Financial advisors must keep up with changing client expectations if they want to attract and retain customers. The advisors of the future will be those who adapt to meet the demand for more holistic, personalized service and guidance. Focusing on soft skills and digital capabilities will be key to success in this new landscape.