Financial Services Institute: OneVoice 2014

Image problem: Millennials donít see the benefits of financial advice

Feb 4, 2014 @ 12:00 am

Runtime: 2:53

Pershing's Kim Dellarocca points out that careers in financial advice offer many of the attributes Millennials are interested in, but the industry is failing to sell an advisory career to the next generation.

The Financial Services Institute's annual broker-dealer conference, taking place January 27-29 in Washington, D.C.

Video Transcript

Very few college graduates know about our profession. 96 percent have heard of it. 25 percent say that they are interested. And only 7 percent say that they are willing and wanting to learn more and actually take a step to getting it by getting jobs. What we have here is an image problem. We have really low awareness of millennials, so this is a career that actually suits their desires. They are-- They want to be employable. They wanna work hard. They wanna make money. This is a career that offers them a lot of those benefits, so what we have to do is first expose them to it, make it easy for them to understand the paths. We have to clarify things like duly registered hybrid, wealth manager, a hedge fund manager. There's a thousand different ways that we talk about our business. We've got to simplify that and speak more about the benefits of being in the business, the ways that we can change lives, the ways that we can make a difference. These are really important qualities that millennials look for in an employer. -Hiring young people is great for everyone. It's great for the founders of businesses because they have someone-- you know, they start to develop a bench. They start to parlay some of their wisdom, which, believe it or not, even though we hear that there's resistance to do that, eventually people get to a place where they want to do that. They wanna pay it for. They wanna show their wisdom. They wanna have a legacy. They also wanna do what's best for their clients. So, they wanna make sure there's something good that will happen to them or even if they wanna just go off into retirement that their clients are cared for. So, wouldn't it be great if our industry could be known for bringing these two groups together in creating jobs and creating better lives for the people whether they're experienced adviser or the younger people. Young people are also great because they bring in new energy into firms. They bring new skill sets. They may not be the skill sets that we survived with and needed for all these years, but they bring new skill sets like knowing how to engage the next generation that looks more like them or social media skills, a technology skills. This is a generation that we call technology natives. The people that we talk to in the industry all agree that it's a really good idea to hire young people and to find them. They think this is-- it makes sense, you know, being the right thing to do. It makes sense because they're ambitious people who are employable, who really want jobs and to work hard. What we have is an issue of some-- Everyone's afraid to be the first one on the dance floor. So, people are holding back waiting to see someone do it, waiting to see how it's going to work, but the truth is is that there are firms out there that are doing it really well and they're seeing there are experienced advisers growing faster, more productive, having options for not only succession, which is, you know, certainly important to the adviser, but also has been important to the clients. Clients are now saying who is behind you. So, we find that the top performing advisers and broker dealers who are working with advisers to offer these types of programs are really embracing this concept and not waiting for someone to go to the dance floor. They are out there.

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