Financial help a top concern for aspiring advisers

With an aging adviser workforce and a pressing need to foster diversity, the advice industry is looking toward the next generation of wealth management professionals for a welcome makeover. 

So what’s holding them back? 

A new survey of some 4,300 financial advisers and students found that a lack of financial assistance was the No. 1 barrier to entry into the industry. Nearly half of the respondents said monetary issues were the biggest hurdle they had to overcome to start their financial advice careers, according to a survey released this week by customer relationship management software provider Redtail Technology Inc. in collaboration with Brigham Young University.

After financial concerns, getting the appropriate licenses took the second spot (38%), followed by getting certifications (21%) and finding a broker-dealer sponsor at (10%), according to the survey, which was fielded in October.

The research also queried 224 students at the university, who believed their biggest hurdle for entering the profession was obtaining the necessary credentials. Not surprisingly, students were more focused on obtaining licenses prior to graduation, with Series 7 being the top priority license, followed by Series 65 and Series 66. 

Taking the CFP exam ranked fourth in importance in terms of licenses, according to the students surveyed, with only 17% of them anticipating pursuing that certification prior to graduation. While students gave the CFP exam less importance, 71% of the financial professionals surveyed thought students should make passing that exam a priority. 

While students focused on getting certified, potential employers were much more focused on how they will interact with clients. The top four skills that financial professionals look for in potential hires include interpersonal skills, technical knowledge of financial planning, marketing skills and a familiarity with fintech, according to the research. 

Interpersonal skills came in markedly higher in the rankings, with 91% of advisers agreeing that aspect was a top priority. 

“When I saw this data point in particular, I saw it as an opportunity for those of us in academia to push the envelope a little further to help prepare our current and future students,” said B. Taft Dorman, an adjunct professor at BYU, who participated in analyzing the survey data. “We have an opportunity to raise the bar by helping students practice interpersonal communication skills more in the classroom, especially on sensitive subjects such as personal finance, as this skill set is clearly expected by professionals who are hiring our students.”

While only a quarter of CFPs are currently women, there's room for hope. Of the more than 200 students surveyed at Brigham Young, almost 61% were women and 56% thought more diversity was needed in the industry.

“I hope that we as an industry will dive into this body of information and see how we can better serve both current and future financial professionals,” Redtail CEO Brian McLaughlin said in a statement.

[More: CFP Board increased number of scholarships 67% in 2021]