March 13, 2024

Practice Management trends for financial advisors in 2024 - Part one  

Practice management trends for financial advisors in 2024 -Part one

This is part one in a series of articles about some of the practice management trends happening for financial advisors in 2024 and beyond. Preparing your practice and your business model for the future is what separates elite advisors from average financial advisors.

Trend one- AI artificial intelligence

I get asked all the time about artificial intelligence for financial advisors. The simple answer is every piece of software you use will have artificial intelligence built into it. This will help you build your text stack faster so focus on the technology that has AI built into it. This would include your financial planning software, meeting presentation software, note-taking software, CRM software, and more. For example, I like using Fathom.AI which prepares a comprehensive summary at the end of all of my meetings. https://fathom.video/    Remember to always check with compliance before proceeding with any software.  

Trend two - succession is on fire

depending on which research you follow it has been said that one in four financial advisors will not be here in five years. There will be 25% of the financial advisors retiring and transitioning in the next five years. If you are a growing advisor then you need to put together resources to take advantage of this trend. For example, I have been building out an equity exit program for financial advisors over the last few years. This includes valuation experts, lending experts, marketing experts process experts, technology experts, and head-hunting or staffing experts to help financial advisors transition successfully. Think about this. You have been a solo advisor throughout your whole career and now in your transition, you're going from a solo to a team. That is why building teams is the number one challenge for financial advisors in the industry today. Do you need help going from a solo to a team in your transition and succession plan?

Trend three - lack of training in the financial services industry

Financial advisors are bringing on associate advisors at a record pace. They are also bringing on additional staff members and teams are growing. While there are challenges finding the right people the biggest challenge I ask advisors all the time is what your training program looks like. The most common answer is we don't have one. Training or lack of is a big issue in the financial services industry especially for growing teams. That is why a lot of financial advisors retouched to a coach or coaching companies so they can deliver training and training programs to their associate advisors and their staff. Most of the training is now outsourced because it has become very expensive. How much are you going to invest in your people this year? According to Business Health in Australia   https://www.businesshealth.com.au/   the average advisor trains staff 10 hours per year. If your firm has a training program make sure you take advantage because you know investing in your people is a great investment. We have no problem buying new software for an ongoing monthly cost. Why not invest in training and add an ongoing monthly cost?

How to prepare for future trends

 First, go through your text stack and see what programs have artificial intelligence. Have a staff member learn how you may be able to use artificial intelligence with the software you're using. 2nd keep an eye on opportunities to grow your practice through acquisitions if that's part of your business plan. Speak to people such as wholesalers and branch managers who are in the know of advisors considering succession and selling down the road. Finally, tap into people who have access to training resources that could help you and your financial advisors you're associates and your team accelerate faster so you can get ahead of the curve and be a future-ready financial advisory practice. #futurereadyfinancialadvisor  Part 2 will discuss other trends in practice management for financial advisors, stay tuned.

Where do you want to be in three years (2027) ? 

Our Practice Management resources - Comprehensive Practice Management checklist

https://practicemanagement.getresponsepages.com/

Sample: Comprehensive Financial Advisor Practice Management benchmarking report

Key data and KPI's, over 30 Key Performance indicators. Do want a sample benchmarking report to help you understand how to get the edge on your practice and your competition? 

 https://benchmark.getresponsepages.com/ 

Updated 2024 Technology Checklist for Financial Advisors  

This checklist is five years' worth of research on the best processes elite financial advisors and their teams implement to acquire and service ideal clients while running an efficient practice.   

https://technology-checklist.getresponsepages.com/ 

We are here to serve your practice, let’s talk

Contact us to help get clarity around your goals on paper, and have the goals conversation by contacting Grant at grant@ghicks.com or click on the link to set up a no-obligation 20-minute discussion https://my.timetrade.com/book/JMTNJ regardless if we work together, let’s have a chat and listen to your biggest practice management concerns to help you get clarity around your future business.

Grant Hicks, CIM, is President of Advisor Practice Management and co-author of “Guerrilla Marketing For Financial Advisors” 1st and 2nd editions. www.advisorpracticemanagement.com for speaking, workshops, or coaching, contact Grant at grant@ghicks.com  Grants combined financial advisor clients manage over 5 billion AUM, and earn over $50 million dollars combined! 

Enthusiastically yours,

Grant Hicks, CIM, President
Advisor Practice Management
www.advisorpracticemanagement.com

PO Box 382 Lantzville BC V0R 2H0
Cell 403 970 8895
Email grant@ghicks.com  to book a meeting click here https://my.timetrade.com/book/JMTNJ  

PS Where do you want your financial practice to be at the end of 2025? AUM, Revenue, and time off? 

STATEMENT OF CONFIDENTIALITY The information contained in this email message and any attachments may be confidential and is intended for the use of the addressee(s) only. If you are not an intended recipient, please: (1) notify me immediately by replying to this message; (2) do not use, disseminate, distribute or reproduce any part of the message or any attachment; and (3) destroy all copies of this message and any attachments.