For those of us who have flung ourselves into the rewarding but rapidly shifting ocean of financial advice, it’s generally because we’re drawn to helping people chart their course across vast and often unpredictable waters. We act as captain, offering the tools, support and advice to keep the ship steady, helping them navigate life’s storms while journeying towards their destination.
Before deciding to join our stable, the financial advisors we chat with cite common challenges as the key drivers behind their desire to move. These generally are:
Navigating the career currents
Financial advisors (FAs) often face challenges in aligning their career goals and personal needs, particularly when they feel a lack of support from their Financial Services Provider (FSP). Many FAs struggle with limited opportunities for professional development, mentorship or recognition, leaving them feeling undervalued despite their contributions. FAs are often restricted to selling a narrow range of products or tied to commission structures that don’t account for changing client needs or market conditions, which limits their ability to grow or diversify their income.
As FAs are generally only qualified to sell certain categories of products, clients need to seek advice from other specialists should they require something that is not part of that FA’s wheelhouse.
In-practice problems
FAs often grapple with complex systems and time-consuming processes tied to compliance. Demystifying these intricate systems is overwhelming, slowing productivity and limiting their capacity to grow their practices. A lack of adequate technology to manage their practices further exacerbates these challenges. Without access to modern, integrated systems, FAs face difficulties in streamlining administrative tasks, client communication and performance tracking, ultimately impacting their ability to deliver the best possible service to clients.
Value perception
FAs face significant challenges in meeting client needs due to limited offerings from their chosen FSP. This affects their ability to provide tailored, impartial financial advice, leading to gaps in solving client-specific problems. This limitation can undermine client trust in the FA’s recommendations.
It is critical that FSPs look at what FAs both want and need and then innovate like crazy. It is important that FAs work with providers who offer the necessary support so they can focus on doing what they do best – advise.
