Our colleagues facilitated a roundtable discussion at the Meeting of Minds Advisory Distributors Owen James event, that focused on the evolving landscape of the UK independent financial advisory (IFA) profession. The session highlighted two critical topics: 1) the aging advisor workforce and 2) current client-side wealth-transfer trends. We offered innovative solutions to these pressing challenges, such as the importance of state-of-the art digital tools, simplification and educational contents. Take a look at the details.
One of the most significant challenges facing the financial advisory industry is the aging workforce. The average age of financial advisors in the UK is 58, and it is projected that 20% of these professionals will retire within the next five years. This impending wave of retirements poses a substantial risk to the industry, potentially leading to a shortage of experienced advisors.
The discussion focused on strategies to attract younger generations to the financial advisory profession. Participants emphasized the importance of rebranding the profession to appeal to millennials and Generation Z. This includes highlighting the rewarding aspects of the career, such as the opportunity to make a meaningful impact on clients’ financial well-being and the potential for a lucrative income; and streamlining operations by reducing administrative burdens.
Dorsum can help you providing state-of-the art digital tools to work with and to offer for clients. These are the keys for attracting new generation advisors, the sooner you implement them, the most you’ll achieve. Contact us if you have any questions.
The second topic of discussion focused on current trends affecting clients, particularly in the areas of generational wealth transfer and intra-gender wealth transfer.
Generational Wealth Transfer: A significant portion of clients, 68%, are between the ages of 51 and 64. Despite this, 88% of UK adults do not seek professional advice on wealth transfers. This lack of engagement presents a missed opportunity for both clients and advisors. The discussion highlighted the need for advisors to proactively educate clients about the benefits of seeking professional guidance during wealth transfers, ensuring that assets are managed and transferred efficiently.
Intra-Gender Wealth Transfer: Another critical trend is the intra-gender wealth transfer. Statistics show that 70% of women change their former husband’s advisor within one year of their partner’s death due to a lack of trust. Female advisors are usually having more risk averse attitude with different investment preferences and focus on long term financial goals, so they require different product offering. Advisors must be sensitive to the unique needs and concerns of female clients and provide smooth and flexible client journey empowered by technology driven solutions.
Dorsum is confident that technology can serve as the key to ensuring future resilience. By leveraging advanced digital tools, advisors can enhance their service offerings, streamline operations, and improve client engagement. Technology can facilitate better communication, provide clients with real-time access to their financial information, and offer personalized financial planning solutions.
We believe that the challenges posed by an aging advisor workforce and client-side wealth transfers can be addressed through technology-driven solutions, guided by the following principles:
Simplifying
Driving Confidence
Powering Up Advisors
Concluding Remarks
The Dorsum-facilitated roundtable session of the Owen James event provided a platform for sharing insights, discussing challenges, and exploring innovative solutions. We are proud to be part of this transformative journey in the financial advice industry and are committed to supporting the sector with our cutting-edge digital products.
If you want to improve your tools and how you interact with your clients, don’t hesitate to contact our Head of International Sales, Éva Adravetz-Kadocsa.
