Financial advisors face fierce competition from robo-advisors, self-directed online brokerages, RIAs, and traditional wirehouses. Wealth Management has suggested the following strategic approaches that advisors should consider.
Expand Your Menu of Products and Services
Advisors should go beyond their traditional offerings and include services like trust and estate planning, tax advisory, concierge services, bill-pay, specialty financing, and bespoke alternative investments. However, compliance and operational issues may limit some firms from offering additional services.
Expand Your Affiliations
Many advisors successfully collaborate with specialists in various fields. As the quarterback, advisors should establish relationships with CPA firms, trust and estate service providers, banks, and lenders. This way, clients see their advisor as the central figure in their financial planning.
Ensure You Are in the Right Place
The ability to expand services and affiliations varies depending on the firm. Captive models like private banks and wirehouses might restrict in-house tax services, whereas independent firms often embrace such offerings. Advisors should align with firms that support their service goals and allow them to serve their target clients effectively.
Find Your Niche
Advisors cannot cater to everyone. Identifying a niche allows advisors to focus on providing specific services their target clients need most. For instance, UHNW clients might require family-office services, while medical professionals may not need yacht financing. Tailoring services to a specific client group enhances efficiency and effectiveness.
Have a "Thing"
Advisors need a unique selling point that sets them apart. Exceptional client service should be a given, not a differentiator. Advisors should identify their specialty: insurance expertise, sophisticated financial planning, or retirement plan services. This distinct offering can help clients understand why they should choose that advisor.
Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.
