OAKS, Pa., Feb. 24, 2020 /PRNewswire/ -- The financial
planning profession is evolving from an advisor-driven and
product-based approach toward a consumer-driven model in which
clients choose how and where to receive advice. With growth over
the next decade likely to be far more difficult to achieve than
during the previous 10 years, SEI (NASDAQ: SEIC) and the Financial
Planning Association® (FPA®) today unveiled their latest research
paper and second in the Innovation Imperative series, "Advisory
Firms in 2030: Growth by Specialization."
SEI and FPA conducted in-depth, one-on-one interviews with
financial planners to better understand what business growth
innovation looks like and the creative strategies they are
implementing for their sustainable growth for the next ten years
and beyond. The latest research delves into real-world
examples of initiatives they have undertaken around business
strategy, niche focus, technology and new media. By concentrating
in these areas, these practices are adapting to the shifting
landscape to better meet the evolving needs of investors and slower
projected asset appreciation to help achieve success.
"Firms focused on growing throughout the next decade must find a
way to differentiate themselves and create personalized and
fulfilling experiences for their client to compete in what will
likely be a very competitive advisory business in the next decade,"
said John Anderson, Managing
Director of Practice Management Solutions for Independent Advisor
Solutions by SEI. "Those successful in doing so can create value
and loyalty by thinking beyond investments, while transforming
unmet, unrealized needs into solutions."
Distilling insights and examples obtained during the research,
SEI and FPA developed key actions for firms looking to achieve
growth in the decade ahead:
Develop and Implement a Growth Plan
Concrete evidence
shows that firms that plan grow faster than those that don't. And
those investing in marketing and business development have
experienced positive results and gained a significant advantage in
positioning advisors to help their clients withstand future
headwinds.
Strengthen and Target a Niche
The most successful
advisors recognize they can't be everything to everyone. They are
serious about articulating their value proposition, profiling their
ideal client and developing a multifaceted marketing program to
attract new clients.
Expand the Service Menu and Document the Service
Model
Advisors should consider developing (internally or
through partnerships) the types of services a target market may
need now and in the future. For example, expertise in Medicare and
long-term care for pre-retirees and retired baby boomers or a
student loan/debt management program for Gen Y investors.
Capitalize on Technology to Grow
Rather than simply
looking to technology to create more efficiencies, advisors should
think about how it can help change what they do. They should focus
on the client journey and find ways to capitalize upon
technology—mobile, chatbot, portal, etc.—to enhance the customer's
digital experience.
Cultivate a Digital, Social and Media
Presence
Advisors should ensure their website follows best
practices for search engine optimization, consider hiring or
designating a content/social media manager and pursue opportunities
to comment in the media on topics relevant to their target
audience.
"The pace of change in financial planning is rapid and clearly
those practitioners who plan accordingly and embrace that change
will be better positioned to realize their future growth
potential," said 2020 FPA President Martin
C. Seay, Ph.D., CFP®. "FPA is honored to work with SEI on
the Innovation Imperative series and know our members, and all
practitioners, will benefit from this collaboration."
Methodology
These latest insights are part
of "Advisory Firms in 2030: The Innovation Imperative," a
joint study from SEI and FPA offering insight into how the
profession is – and isn't – anticipating clients' changing needs
and innovation's role in adapting to these changes.
To learn what financial planners think about the next five to 10
years, FPA and SEI conducted a series of in-depth, one-on-one
interviews with eight hand-selected planning firms, representing
both large and small firms, some of whom have more than 40 years of
experience, and others who started in the midst of the global
financial crisis. FPA and SEI also conducted an online survey in
August 2019 of 436 financial planners
(primarily owners, managing partners and lead planners)
representing a variety of experience and years in the business.
Additionally, SEI, in association with Phoenix Marketing
International, surveyed 686 non-self-directed investors with
investable assets between $100,000
and $4,999,999 in May 2019 to learn about the digital tools they
use with their planners. FPA and Phoenix Marketing International
are not affiliated with SEI or its subsidiaries.
About the Financial Planning Association
The Financial
Planning Association® (FPA®) is the principal membership
organization for CERTIFIED FINANCIAL PLANNERTM
professionals, educators, financial services professionals and
students who are committed to elevating the profession that
transforms lives through the power of financial planning. Through a
collaborative effort to provide members with professional
education, business support, advocacy and community,
FPA advances financial planning practitioners through every
phase of their careers, from novice to master to leader of the
profession. Learn more about FPA at OneFPA.org and follow
on Twitter at twitter.com/fpassociation.
About Independent Advisor Solutions by SEI
Independent Advisor Solutions by SEI provides independent financial
advisors with wealth management services through outsourced
investment strategies, administration and technology services, and
practice management programs. It is through these services that SEI
helps advisors save time, grow revenues, and differentiate
themselves in the market. With a history of financial strength,
stability, and transparency, Independent Advisor Solutions has been
serving the independent financial advisor market for more than 25
years, has 7,600 advisors who work with SEI, and $70.8 billion in advisors' assets under
management (as of Dec. 31, 2019).
Independent Advisor Solutions is a strategic business unit of SEI.
For more information, visit seic.com/advisors.
About SEI
After 50 years in business, SEI
(NASDAQ:SEIC) remains a leading global provider of investment
processing, investment management, and investment operations
solutions that help corporations, financial institutions, financial
advisors, and ultra-high-net-worth families create and manage
wealth. As of Dec. 31, 2019, through
its subsidiaries and partnerships in which the company has a
significant interest, SEI manages, advises or administers
$1 trillion in hedge, private equity,
mutual fund and pooled or separately managed assets, including
$352 billion in assets under
management and $683 billion in client
assets under administration. For more information, visit
seic.com.
Media
Contact:
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Media
Contact:
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Leslie
Wojcik
|
Ben Lewis
|
SEI
|
Financial Planning
Association
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+1
610-676-4191
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+1
303-867-7190
|
lwojcik@seic.com
|
BLewis@OneFPA.org
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SOURCE SEI Investments Company