The Wealth Management of the Future Roundtable

Why financial advice will always remain a relationship business

Nov 21, 2013 @ 12:00 am

Runtime: 3:53

Cetera CEO Valerie Brown on how as advisers look forward, being able to embrace technology to complement their client relationships will allow them to adapt and withstand the changing times.

Video Transcript

The adviser in the future will continue to play the role here she played today, which is the consultant confidant educator to his or her client. This will remain in relationship-based business. With that said is more and more tools and information becomes available on the internet. There's already a lot. The educator role is gonna become more and more important to the adviser as he interacts with this client. In his business, he will need to become a data minor data analyst to be able to be relevant and timely for his or her client. As we look for the next 20 to 30 years, the data suggest $41 trillion are going to move from the boomers to the millennials. And those of us who have millennials' children, we know they really like to interact different. They still have relationships, but they interact very differently. So, as advisers look forward being able to embrace that technology market through that technology and interact and educate through that technology is king. The other thing I would know is that as boomers are in the retirement phase actually assets are coming down for the adviser and so one thing you will see consistently the top issue advisers are facing is, how do I bring on new relationships and new assets to my practice? And I think the great opportunity that's a win for us in this industry is we talk a lot about the aging of our adviser population. Advisers in the independent space had been more reluctant perhaps to bring on new people to their firms. Those were recognizing this trend towards millennials. To be able to bring the technology into their practice, they need somebody younger in their firm to help him do it. I think there's a win, win, win here. There's a win for the client because they'll be able to interaction with their adviser in the way they want to. There's a win for the adviser because now he or she are gonna be able to replace a lot of assets. They're moving out through retirement income and there's a win for us firms because the next generation now are going to be embraced by these practices. You know, I think one of the dangerous advisers we have today is to think that this business is a commodity-- because it isn't. Relationships are never a commodity. And so how do advisers stand out? I think they need to understand the clients that they really resonate with the best and develop a communication strategy and a relationship building strategy with them such that those clients refer friends that look like them. And the most successful advisers we see in our networks are advisers who actually employ that strategy and it works very, very well. Now, this needs to be enabled by technology, which it is at Sotera, but it is critical going forward to recognize relationship. I never think it will remain king that referrals will bring in the new assets.


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