Embrace mobile tech or risk being left behind in next demographic shift

What we as financial advisors can do with technology today would have seemed like a pipe dream at the advent of my career. Technology brings us, and our clients, increased efficiency and connectivity on a daily basis. In our industry, if you’re not leading the curve, you’re falling behind, and mobile wealth management capabilities are at the forefront of the race to serve the next wave of clients.

While baby boomers still hold the largest share of wealth in the U.S., Gen X and millennials are quickly gaining ground. Gen X’s share of assets has increased from 16% to 28% in the last decade alone, according to Federal Reserve data.

While some clients who are part of the Greatest Generation or the earliest of baby boomers might need a nudge to leverage technology, such as digital signatures and texting their advisor through compliant channels, younger generations are digital natives and view those capabilities as an expectation rather than a value-add. Advanced technology and mobile capabilities are likely to be top selling points for next-gen clients as trillions of dollars transfer hands over the next 20 years.

Beyond the convenience of mobile advisor technology, its usage is becoming more deeply ingrained in the advisor-client relationship. For example, take being in a social situation with a client and having the ability to pull up their most current portfolio information on demand and then instantly emailing a report from a secure application, and how that interaction strengthens the client-advisor relationship in a meaningful way. Many advisors are important and integral parts of our clients’ lives and that doesn’t necessarily just fall between the hours of 9 to 5, or when you’re in front of a desktop computer screen.

Given the increased compliance and supervision requirements that have swept through the industry, the fact that I can also use mobile to document conversations in the CRM system provides me with an added sense of security. I can even dictate notes into the CRM when I’m short on time.

Next-gen clients aren’t the only ones mobile will help to serve. At Raymond James, we’ve found that high-net-worth clients with $5 million or more in assets are the most frequent users of our client mobile portal, with around 86% of those clients using it. The net worth of the population continues to trend upward, and by some estimates the number of global millionaires will grow 40% by 2026.

Significant wealth takes work and the more successful a client is, the more they tend to seek out the tools that will help simplify the management of their money. It’s our job to make it easier for clients to find and use these tools as their assets grow and to help them preserve their net worth.

Applications that allow clients to upload information securely, like estate planning documents or additional accounts, can be a catalyst for the advisor to add significant value. Once the needed information is uploaded, it can prompt the initiation of account transfers or the adding of new beneficiaries. This is the type of streamlined experience and white-glove service it takes to capture and retain the growing number of wealthy households as clients.

Alongside the change in client demographics, we’re also facing a startling demographic shift in our industry as the average age of advisors trends older. Cerulli estimates that within the next 10 years, 37% of financial advisors, collectively controlling 40% of total industry assets, are expected to retire. It’s imperative even for those advisors transitioning out of the industry to continue to embrace ever-evolving technology. Even when doing so feels uncomfortable, it will ensure that the transition of one generation of advisors to the next bridges all aspects of the client relationship, including the technologies that will be second nature to the next wave of clients.  

Kevin Fusco is vice president at Fusco Financial Associates and a financial advisor with Raymond James Financial Services, where he serves as a member of the Technology Advisory Council.