The financial world continues to shift as people need a plan to save for retirement. Couple that with technological growth and a shifting investment world, it can be intimidating for retail investors. This puts added pressure on advisors to provide for their clients. Hexaview participated in the Schwab IMPACT conference and here were some of the key takeaways.
Vendor Selection
It’s always up for debate is advisors should go all-in with one tech vendor or multiple. While it comes down to a case by case basis, the key to consider is how are you benefiting your client. Financial technology isn’t cheap, and realistically costs are passed down to clients.
To mitigate the associated costs, understanding the technologies you currently have is critical. From there, you can decide if you need to bring in another vendor, or even change your current platform altogether. As long as you continue providing value to your clients, that should be the first concern.
All-In
Secondly, the driving theme of the conference was “all in”. Being all in no matter what the topic or product is remains critical. As advisors, handling someone’s wealth is a large responsibility and show of trust.
With that, it’s important to go all-in on new ideas. Staying ahead of the curve is crucial in a consistently evolving landscape. Go all in in testing and ensuring it adds value to your existing products and services.
Also, going all-in on lower fees and advisor independence is important. Fees continue to be a competitive data point as ETF’s and platform move towards zero expense ratios and zero trading fees. Going all-in will certainly provide added benefits to your book of business.
More Than a Financial Coach
Lastly, more often financial advisors are looked at as a life coach. As advisors, you’ve likely seen and heard more than your individual clients have. With that comes the responsibility to be a step above and ensure the well being of your clients, in terms of how they allocate their money.
Understanding their situation and altering your understanding to meet their needs is paramount in this business.
The Schwab IMPACT event was certainly an eye-opener for the industry. As technology and the importance of advisors shifts, so do the mindsets of the individuals within. Going all-in with everything is important and will allow your business to grow and remain healthy.
