The Future of Financial Advisory and Emerging Trends (2024)

Dear Advisor, It's an open secret:

The world of financial advisory holds immense potential for growth and success.

But there's a catch:

Only financial advisors who can evolve and embrace innovation will find themselves in the driver's seat, with the power to craft their destinies and hit record-breaking sales milestones.

Meaning: It's time to get out of your comfort zones and embrace the new normal!

As the renowned Alan Watts said, “We can only make sense of change by immersing ourselves in it, going along with it, and joining the dance.”

So, let's get started and jump into the deep end of this exciting new world!

Disrupt Or Be Disrupted

To drive home this point we'll make do with not one, but two examples of businesses that have been disrupted due to their resistance to innovation. 

Take Yahoo, for instance, which refused to adapt to the changing market and was ultimately dethroned as the king of “Search” by Google. Or Nokia, who failed to “pay much attention to its software line-up” and ultimately became a cautionary tale of missed opportunities.

The same holds for financial advisory. In this rapidly evolving industry, those who resist change risk being left behind. 

We’ll like to add:

A "broke financial advisor" should be a contradiction in terms, but unfortunately, many are resistant to change and unwilling to embrace new ideas. Continuing to pursue the same actions and hoping for a different outcome is the epitome of folly. 

But this is where it gets interesting:

Clients are increasingly comfortable with change - and even demanding more innovation based on evolving needs and wants.

And let's not kid ourselves - this is not just a fad for the younger generations. Even the older crowd is getting savvy with the trend-led disruption. 

Above all else…

Over the next 20 years, we're looking at the biggest wealth transfer in history. The baby boomers will pass on their financial wealth to their Gen X and millennial offspring - and we're talking over $40 trillion dollars up for grabs. 

Advisors who can't hack it are going to get fired, to put it bluntly.

So, what's the move, dear insurance or financial services professional? 

Below are some elegant ideas on the future of financial advisory, and how you can use them to create a more sustainable and innovative practice.

Look Before You Leap - Accessing Your Needs

It can require huge investments to implement new technologies and processes in financial advisory. So, whatever you do and before you jump headfirst into the latest trend or tool, it's crucial to assess your business needs and goals.

Just like a sailor who takes stock of the wind, weather, and sea before setting sail, a savvy financial advisor needs to consider their current position, resources, and clients' needs before pursuing any innovation.

Ask yourself questions like:

• What areas of my business need improvement?

• What technology or tools can help me achieve my goals?

• Will this investment align with my business values and objectives?

• How will this impact my client's experience and satisfaction?

By taking a thoughtful and strategic approach, you can ensure that any innovation you adopt will serve your business and clients' best interests.

Robo-Advisors - Navigating The Fine Line Between Automation And Human Involvement

Once upon a time what looked like an almost Orwellian future is now a reality - the rise of robo-advisors! 

But, rather than hit the panic button, look at it this way:

These financial robots are your allies. Your sharp iPhone camera didn't replace the photographer, and robo-advisors won't replace you as a financial advisor (if you know what you're doing).

For the sake of emphasis (and for those unaware):

“Robo-advisors provide financial planning services through automated algorithms with no human intervention.” - Investopedia.

Think of robo-advisors as your trusty sidekick, handling the repetitive and mundane tasks, while you, the advisor, focus on other strategic tasks that require your Midas touch.

Personalized Financial Advisory: From One-Size-Fits-All to Tailored Solutions

Here's the million-dollar question: 

How do you make it in a cutthroat industry like financial advisory with savvy brands and big advisory firms throwing their weight around without being “just another advisor” that people wouldn't want to touch with a ten-foot pole?

The answer in one word:

Personalization.

In the past, financial advisors would often rely on a one-size-fits-all approach to financial planning. And they could get by because customers weren't as exposed to information as they do now - they could get away with it. Not so now - no, sirree. You've got to shake things up. 

Reading the tea leaves, people will demand and expect personalized services or they'll be gone in the wind. It also includes “delivering remote advice” which according to McKinsey, can attract new clients and lead to “reaping significant cost advantages.”

Invest in tools that will allow you to gather clients’ data and then use this information to provide tailored financial advice that truly meets the needs of each client.

Take Eszylfie Taylor - an ACTIVE Million Dollar Round Table Top of the Table producer for example. By using his clients' data to tailor his approach, he has created a loyal following that trusts his judgment and expertise.

And that's the key - trust. 

Clients want to feel like their advisor understands their unique situation and is working with their best interests in mind. By offering personalized solutions, you can create a deep level of trust that will keep clients coming back for years to come.

Integrate Fintech

The Covid-19 pandemic was more gloom than glitter, but it did shed some light on the importance of fintech in the financial advisory industry. With social distancing protocols in place, many financial services businesses had to resort to virtual meetings and online transactions. This accelerated technology adoption in the industry (Deloitte).

Fintech, which stands for financial technology, refers to the use of technology to improve and automate financial services. This includes everything from mobile apps to client management tools.

And in a world where clients expect seamless digital experiences, embracing fintech is no longer a choice but a necessity. What gives? When you integrate fintech into your practice, you can automate repetitive tasks, streamline your workflow, and provide a more efficient and cost-effective service.

For instance, you can use a client portal to securely share documents and communicate with clients in real time. Or you can use AI-powered robo-advisors to provide personalized investment advice to clients.

But that's not all. 

Fintech also opens up new possibilities for client engagement, enabling you to deliver financial advice in real-time and on the go. 

A Shift Towards Empowerment

Look, the data is in and it's crystal clear. 

The outcomes of a study revealed that a significant majority of financial advisors who participated in the survey, i.e. 74% of them, have observed a surge in handling matters that are unrelated to finance.

And get this: 25% of their average workday is spent on these non-financial matters. 

It just goes to show that financial advisors are much more than number-crunchers these days - the role of financial advisors as life coaches is evolving, and this trend is expected to continue as more facets of their clients' lives intertwine with their financial goals.

In the future as an advisor, expect more requests to provide guidance and support in areas beyond just money management. Core learning: The future belongs to those advisors who can effectively blend financial expertise with a holistic approach to addressing their clients' overall well-being.

Audience Building For The Future

The importance of this cannot be overstated. It's critical. 

As it stands most traditional inbound marketing tactics are slowly losing their effectiveness. For example, ChatGPT has marketers scratching their heads about what the future holds for SEO. 

Believe it or not, in the years to come we will see a rise in gated content, private communities, and exclusive thought leadership content.

Here's the point:

Look beyond traditional platforms and do your best to secure a community of loyal followers you can reach and interact with on your terms. Did we hear you say an email list?

Yes, an email list is an excellent place to start. But don't stop there. Consider creating your online community or forum where you can engage with your audience directly. This way, you can build a stronger relationship with them and provide more personalized advice.

Cut out all the fluff and marketing gimmicks. 

You want your potential clients to see that you're the real deal and that you can provide them with real value. No one wants to waste their time on something that doesn't benefit them.

So, what's the secret sauce? Valuable content. 

Give your clients something that they can sink their teeth into. Something that they can learn from, something that will help them in their own lives.

Follow this advice, you'll be lightyears ahead of your competitors. While they might be trying to figure out the latest algorithm or policy change, you'll be generating ceaseless leads like a well-oiled machine.

Embracing Diversity And Inclusion

Finally, as a savvy financial advisor, you have to be “woke” to the world around you. That means embracing diversity and inclusion like it's your job - because it is.

Without a doubt, it's true.

Because in a world where demographics are shifting and cultural norms are changing, it's important to understand the unique needs and perspectives of clients from all backgrounds.

By embracing diversity and inclusion, financial advisors can build stronger relationships with clients, better understand their needs, and ultimately provide more personalized and effective advice.

But it's not just about being politically correct - it means hiring a diverse team and also creating a culture of inclusion and belonging. Encourage your team to bring their whole selves to work, and create a safe space where they can share their perspectives and ideas.

Last Words: Stay Ahead Of The Curve With Continuous Learning

Did you know there is a way for insurance and financial services professionals to break through walls and achieve their true potential?

It's through upskilling.

And guess what? 

Upskilling is not just for entry-level employees or those looking for a career change. In the world of financial advisory, continuous learning is a vital component of staying relevant and thriving.

And that brings us to an all-important point for every advisor:

If you're looking for a no-nonsense, field-tested, and proven way to develop the mindset, process, and language to build a million-dollar practice, then the Taylor Method will bring you much joy.

Here's why:

We're talking about an 'Objection-Free' sales process developed by none other than Eszylfie Taylor, an ACTIVE, MDRT Top of the Table producer, which puts a heavy emphasis on problem-solving instead of just selling products. That’s not all:

This system includes a deep library of content to help you address each pillar of the sales cycle effectively. 

But here's what takes the cake:

It works. 

For example, its helped advisors…

• Go from Top 500 to Top 11 at my company in 90 days (that's not a typo);

• 13x improvement in life insurance production in less than 2 months;

• 6x increase in overall production in less than 6 months and made Top of the Table for the first time in a 9-year career; and,

• Quadrupled their average case size and tripled year 1 production in 3 months.

By embracing the Taylor Method, financial advisors can become more knowledgeable about their industry, improve their sales skills, and develop a deeper understanding of their clients' needs. This knowledge and skillset allow them to provide more personalized advice and create better financial plans, ultimately leading to greater success and growth for their practice.

So don't be afraid to disrupt yourself and embrace change - your clients (and your wallet) will thank you for it! Join the Taylor Method while spots are still open.