2021 has been a year of transition for many financial firms coming out of COVID-19. The event has been exposing challenges for some, while others are experiencing new opportunities and thriving even more than pre-pandemic. In our conversations with RIAs, our team identified the following business initiatives as common ground amongst the fastest growing firms over the past 18 months.

An improved client digital experience

Digital experiences that enabled clients to access data and communicate with your firm kept AUM in-house and brought in new business for many RIAs. The client experience includes the client portal on your website that enables clients to digitally access their data and communicate with their advisors.

As the next generation of clients emerge over the next couple of decades from the most significant inter-generational wealth transfer, RIAs must be mindful of the digital experience and invest in technologies that provide robust and intuitive user interfaces.

Investing in technology that works together

Instead of having software for financial planning, another that analyzes and trades investments, and another tool that manages client information, integrating technology that works together is essential for RIAs. With remote work becoming widely adopted, it’s imperative for both employees and clients to be able to access portals and information from anytime and anyplace.  In the wealth management industry, client-facing actions produce AUM growth, while legacy systems can drain human capital when not efficiently integrated. Look for companies with cloud-based solutions and APIs that are easy to tap into.

Offering intergenerational planning to keep assets in-house

Cerulli Associates estimates the total amount of intergenerational wealth transfer to be in the range of $68 trillion over the next decade. Therefore, RIAs must initiate planning between the generations as a critical component to retaining a large percentage of their clients’ assets will pass to their heirs. With proper introductions and inter-generational financial planning, the inherited AUM can remain within your practice. 

Offering multiple advice models

The next generation of investors will be different from their parents in how they view financial advice. For example, some new clients may want full-service advice, while others may want an experience that mixes advice with the ability to do some of their investing independently. Offering various services that cater to the next generation’s needs and desires will attract and sustain AUM.

Video conferencing and app communication

COVID-19 brought video conferencing to the forefront, with many clients now expecting virtual conferencing and on-demand app communication. However, they also want to communicate with text and other methods that they use in their everyday lives. Advisors that are in tune with how their clients want to communicate show they value their relationship when they communicate in the same way. Gone are the days of only in-person meetings and phone calls—advisors must prove their communication technology is as modern as their trading, CRM, risk analysis, and other technologies.

AdvisorPeak and our partners are here to help you modernize your practice this year. Contact us today to find out more!