What are the disruptors financial advisors need to heed? Few words cause more anxiety within a profession than disruptors. Whether it’s Vanguard, the Robo movement, technology, fee compression, etc. – few paint a rosy picture for financial advisors.
But I disagree. Elite Advisors aren’t fretting about disruption. Why? Because they continually make adjustments in order to be relevant to the needs of their clients. These adjustments are what we refer to as internal disruptors – and they fuel growth.
The following are six of the disruptors that have fueled many Elite Advisors:
- Your Role – How do clients perceive your role? Are you pigeon-holed in your original role when they first became a client? Our research tells us today’s affluent don’t care how and where you began your career – their concern is what your role is today. They want a financial advisor who can provide guidance and advice on the multi-dimensional aspects of their family’s financial affairs.
Growth Disruptor: Answer three questions; What is my role as a financial advisor? What do my clients perceive as my role? What steps do I need to take to be advising on the totality of their family’s finances? Disruption begins by making the necessary adjustments.
- Your Deliverables – What solutions are you providing? These are your deliverables and they should be inextricably linked to your role – you don’t want to be viewed as a commodity where price is an issue at every turn.
Our research tells that 28% of affluent clients report that they have a financial plan that they’re following. On the flip side, 74% of financial advisors tell us financial planning was a core part of their deliverables. That’s a huge perception gap!
This suggests that many clients aren’t aware of all the deliverables their financial advisor provides. To be relevant with today’s affluent, financial advisors should always be looking for ways to expand their deliverables; reviewing insurance documents, updating estate plans, providing financial document organization solutions, etc.
Growth Disruptor: Have you added any new deliverables in the past year? What new deliverable could you provide? As you answer these questions, strategically plan one new deliverable you will add.
- Your Team – You need a team of client focused knowledge workers who are dedicated to professional excellence – “A” players that enable you to meet the expectations of today’s affluent.
This requires a thorough assessment of every team member. Ongoing growth and improvement should be the team mantra.
Growth Disruptor: Identify underutilized talent, underperformers, and specific team needs. Then make your adjustments; promoting, training, hiring, and/or career counseling.
- Your Outside Experts – Few wealth management teams have all the expertise necessary to meet the needs of their affluent clients. Therefore, they’ve developed strong working relationships with outside experts; estate attorneys, divorce attorneys, CPAs, bankers, insurance specialists (life, health, pc, etc.) to serve as virtual members of their team.
As the primary financial advisor, you’ve vetted these professionals, personally introduced them, and follow-up to ensure services are delivered.
Growth Disruptor: Identify needs that require outside expertise. Do you have healthy, working relationships with the appropriate professionals? If not, get busy. If you do, you’re in good shape, but make certain that every affluent client’s outside service needs are addressed. This is all about being indispensable.
- Your Clients – Many financial advisors have culled their client base to a manageable number, yet many still have too many clients. It’s virtually impossible to provide the deliverables today’s affluent clients need and serve as their primary financial advisor if you have too many disparate clients. The objective is to have a niche, an ideal client profile, to whom you’re committed to being the end-all-be-all and have the bandwidth to deliver on all promises.
Growth Disruptor: This goes beyond segmenting your client base. This is all about playing without a net. Are you willing to jettison clients who are holding you back? I’ve never witnessed a financial advisor who didn’t experience Quantum Growth from embracing this growth disruptor.
- Your Technology – This is obvious, which is why I’ve placed it last. Everybody has access to the latest technology, whether they’re working with a financial advisor, going Robo, or doing it alone. The message here isn’t that you need to have superior technology, rather it’s that your technology is current, and both you and your clients understand the functionality.
Today’s affluent want their financial advisor to be using current technology, they want access to current technology, they want statements they can understand at a quick glance.
Growth Disruptor: Keep your technology current, which requires updating when necessary. Keep clients apprised of your technology and how to use it on their end. Make certain that clients understand their statements, and are using the technology you’re providing.
With all the noise of disruption, model yourself after the elite of the industry and apply yourself to the internal disruptors that are relevant to your business.
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