Part 1: What’s Your Next Big Thing?

What are the next big things I am seeing in the industry? 

Let’s start with the following impactful trends: 

1. Use of Technology 

COVID-19 has fundamentally changed society and how we do business – permanently.  We make all consumer decisions via Google (or your preferred browser or social media channel recommendations), we attend virtual events, interact remotely with our colleagues, peers, and fellow business professionals. We even attend masterclasses from our living rooms (I’ve personally done several and highly recommend the classes by Chris Voss and Gordon Ramsey). Advisors are reporting increased success by using technology for better client communication and engagement. The Advisor of the future, therefore, will be the one who successfully embraces the use of technology in every aspect of their business.   

My advice? Add a new technology capability to your business every 90 days.  If you do this, you will completely transform your business in three years. 

"The Advisor of the future

will be the one who successfully

embraces technology in every

aspect of their business"

2. Focus on Customer Problems 

The best businesses are the ones that can identify emerging problems within a large consumer base and find solutions by becoming subject matter experts. 

Over the next five years, the three big problems I see facing our clients are:

• Inter-generational Wealth Transfer
• With the largest amount of wealth in Canada set to change hands from one generation to the next, some Advisors are adding to their services to better connect and serve their clients' next generation. They are doing this by offering a “Basic” service - WealthSimple, is one such example and engaging the next generation in family planning meetings, which help the next generation prepare to inherit.

• Shifting from Accumulation to Decumulation
• As financial advisors generally earn most of their money from investors who are in the retirement phase of their lives, particularly those who are either three years away from retirement or three years into retirement, some Advisors are laser-focused on becoming subject matter experts in retirement income planning. They are sharing knowledge and building their brand within the space using multiple channels such as podcasts, newsletters, social media and delivering impactful presentation through virtual client events, to reach their audience. This is helping them ensure that they continue to retain the clients they've nurtured as they go through their wealth decummulation phase.

• The Emerging High Net Worth Market (sudden money)   
• Advisors are broadening out their service offerings for clients with over $1 million in investable assets. These are the people who hold most of the wealth in Canada – those who have come into increased wealth either through the sale of a property, home or a business, inherited, or experienced a lottery windfall.  Advisors need to keep these clients feeling special while delivering more comprehensive wealth management solutions to meet their evolving needs. Advisors are doing this through partnerships and by offering services such as tax and estate planning, planning for philanthropy or charitable giving, business succession planning or advice and planning for their next generation.

These are just a few of the key trends that are reshaping how Canadians seek advice and access the services of a financial advisor.  As with embracing technology for all aspects of their business, advisors who evolve to meet the changing needs of their clients and the Canadian investor are the ones who will be successful going into the next five years.  In my next post, I will continue the topic of “the next big trends” we are seeing in the industry.  In the meantime, I would be happy to work with any Advisors who wants to take their businesses to the next level of success –I am only an email away! 

Cheers,

Chris