The term "financial advisor" is used frequently by all kinds of professionals in the financial services industry. Advisors must understand their competitors and the unique strengths you or they offer. The list below compiled by ThinkAdvisor highlights ten types competing for clients.
1. Traditional Wirehouse Firms
Traditional wirehouse firms often have world-class, in-house research departments. Wirehouse firms also have branches nationwide, a long history, and access to product specialists in local markets.
2. Do-it-Yourself Online Traders
DIY online traders often deal directly without paying someone for advice. However, they continually invest without the benefit of advice.
3. Regional Firms
Several regional firms remain independent, meaning banks do not own them. Regional firms often have their own research departments and are highly regarded in the local markets.
4. Multistate Banks
Clients of multistate banks often start as banking clients. The bank's name generally delivers a message of stability to its clientele.
5. Private Bankers
Private bankers offer services similar to the wirehouses with an additional specialization in banking services. Private banks are focused on the ultra-high-net-worth market and offer almost every service imaginable.
6. RIAs
RIAs highlight the fiduciary relationship because they do not recommend products that a firm wants to sell but instead recommend what is best for the client.
7. Community Banks
Community banks have excellent local brand recognition. The banks tailor their loans to the local market, and the people making the lending decisions are generally local. Which helps promote the financial services sector of the business.
8. Financial Planners
Financial planners can provide service that is often portable. The financial planner can implement a client's plan anywhere the client chooses.
9. Insurance Agents
Currently, other firms are entering the insurance space as competitors, resulting in insurance companies providing wealth management. Insurance agents and prospects may already have an existing relationship. The agent will seek to build on this trust to expand the relationship.
10. CPAs & Lawyers
CPAs and lawyers also offer a level of trust and confidentiality because a fiduciary relationship is in place.
Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.
