Traditional Financial Advice Providers Must Evolve to Compete Effectively

Corporate Insight’s new study The Changing Face of Financial Advice: 2015 and Beyond analyzes the challenges facing wealth management firms and offers recommendations to help them succeed in the uncertain times ahead

NEW YORK--()--Corporate Insight, a leading provider of competitive intelligence and industry analysis to financial institutions, has released a new study, titled The Changing Face of Financial Advice: 2015 and Beyond, that analyzes the critical demographic, technological and competitive challenges facing today’s wealth management firms. The study draws on two comprehensive surveys that Corporate Insight fielded in February 2015, one focused on financial advisors (500 respondents) and another on investors (over 1,200 respondents), to understand overall client satisfaction, customer communication preferences, the role of technology in the FA-client relationship and other key aspects of the customer experience and advisor practice management. The study combines proprietary survey data with insights from third-party research and interviews with financial advisors, industry experts and brokerage firm executives.

“From a distance, the wealth management industry has never appeared stronger,” according to James McGovern, Vice President of Consulting Services at Corporate Insight. “A closer look reveals numerous cracks in the industry’s foundation, however. Marketing, pricing, recruiting and technology are all areas where firms must reconsider their current tactics if they hope to compete in the long run.”

The Changing Face of Financial Advice covers an array of topics, including:

  • Managing the impact of changing client demographics on advisors/investment firms
  • Recruiting a more diverse advisor work force
  • Understanding investor priorities
  • Improving advisor- and client-facing technology
  • Coping with regulation and the fiduciary standard
  • Understanding and responding to emerging competitive threats like robo advisors and hybrid brokerage firms like Charles Schwab, Fidelity and Vanguard

In addition to analyzing these and several other issues, the study provides wealth management firm executives with actionable advice to address these challenges and build a stronger, more competitive business.

Senior Analyst Silviya Simeonova explains, “Wealth management firms and advisors must adjust to changing market dynamics and consumer expectations if they want to combat asset flight and acquire new, high-potential customers. They must also look to underrepresented demographic groups for fresh talent to reverse the aging trend that has plagued the industry for several years.”

Sean McDermott, Analyst, reiterates this point, “What worked for Baby Boomer clients isn’t necessarily going to work for Generation X and Millennial investors. Going forward, traditional advisory firms will need to embrace a new mix of people, processes and products if they expect to succeed in an increasingly competitive industry.”

To purchase the full study online, click here. For more information or to schedule an interview with Corporate Insight, please contact:

About Corporate Insight

Corporate Insight provides competitive intelligence, consulting and user experience research to the nation’s leading financial institutions. For over two decades, the firm has tracked technological developments in the financial services industry, identifying best practices in online banking and investing, online insurance, mobile finance, active trading platforms, social media and other emerging areas. The firm helps its clients to remain at the forefront of industry trends and improve their competitive position.

Further information on Corporate Insight is available at www.corporateinsight.com/about-us.

Contacts

Intermarket Communications
Stephanie DiIorio, 212-754-5181
sdiiorio@intermarket.com
or
Intermarket Communications
Hilary Edelstein, 212-754-5448
hedelstein@intermarket.com

Contacts

Intermarket Communications
Stephanie DiIorio, 212-754-5181
sdiiorio@intermarket.com
or
Intermarket Communications
Hilary Edelstein, 212-754-5448
hedelstein@intermarket.com