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You need the right tech stack and service model for the industry ’ s coming changes .

By Stephanie Bogan

Today ’ s profession couldn ’ t look more different : It ’ s undergoing a seismic shift fueled by a surge of new technologies , shifting consumer demographics and evolving service expectations . Amid fierce competition for market share , top-performing advisory firms are responding to these trends by “ future-proofing ” their practices .

Changing Demographics And Growing Demand Financial advisors must be guides for people ’ s lifelong goals , steering clients over time from cash-flow management to retirement planning and estate transitions . And it ’ s clear our approach must adapt as younger generations come into play and require our services and as our older clients live longer . The way we deliver financial guidance under these circumstances must adapt so we can make sure our firms are effective and profitable as we offer tailored services and personalized advice .

That means advisors will likely have to reshape their business models and fee structures , moving beyond traditional AUM fees , since younger clients want to do business in a way that resonates with them , their financial reality and their dynamic needs .

It ’ s not just money they want to talk about . Research shows that consumers across every segment also increasingly want to

add holistic services and advice on non-financial topics such as longevity , health , lifestyle and relationships .

In the future , you ’ ll need to differentiate your firm in the marketplace by meeting the specialized needs of clients in an efficient , economical way . And if you want to offer these hyper-specialized services at scale , you ’ ll need to invest in and rely on technology , which will free you to focus on the human side of advice .

Let ’ s explore two trends reshaping today ’ s advisory firms and one tactic you can use to future-proof your firm .

Taming Technology

The new technology has allowed firms to streamline their operations and boost their productivity in ways unimaginable a mere decade ago . So imagine what the future holds . Tech platforms , automation and AI are simplifying complex processes so advisors can focus more on personalizing their service . In a way , this makes technology a great equalizer , leveling the playing field for smaller firms and supporting scale for larger ones

30 | FINANCIAL ADVISOR MAGAZINE | DECEMBER 2024 WWW . FA-MAG . COM