Survey of advisors find most expect downturn in next 2 years
Financial advisors are predicting a downturn and want to attract more high-net-worth-individuals as clients.
These are two of the main takeaways from a new survey by investment solutions firm SEI which also reveals their top resolutions for 2019.
Most (77%) of the FAs surveyed expect a downturn in the next two years with a third expecting it in 2019 and 44% predicting it will be in 2020. Almost 4 in 10 advisors are most concerned about a “big market correction” while 25% are fearful of political uncertainty.
Asked about goal-setting, the number one response (25%) was attracting and retaining high-net-worth clients.
Completing the top five goals are: increasing client referrals, implementing technology workflows to improve efficiency, conducting more outward-facing marketing activities, and growing by acquiring other advisor firms.
Enhancing the client experience
Three in 10 FAs said that the one large investment they would like to make to improve their business is to enhance the client experience.
Next on the list is growing their advisory team, followed by increasing their marketing budget, and acquiring another firm.
The top five New Year’s resolutions of advisors reflect this:
- Increase client educational events and resources for my clients
- Take advantage of more millennial investors looking for advice
- Increase digital marketing channels
- Build a center of influence
- Grow by acquiring other advisory firms
Looking to the future
The SEI survey also asked about the trends what FAs feel will change the business in the next 5-10 years.
More than one third identify the increasing shift away from a product-based business model to an advice-based one as the trend that will impact and change the financial advisory industry the most in the next five to 10 years. In second place, increased regulation and compliance oversight was cited by 26% of respondents as a trend to watch.
"This year's survey reveals that goals and resolutions align with the continued evolution toward greater demand for personalized advice and service," said John Anderson, Managing Director and Head of Practice Management Solutions at Independent Advisor Solutions by SEI. "Through a personalized financial plan, clients are more likely to understand how market events impact short-term and long-term goals. With the outlook revealed today, advisors need to be laser-focused on providing the optimal client experience and preparing their businesses to best serve their clients during volatility in the near term, as well as into the future."
