We keep an ear out for the trends and emerging stories that drive the wealth management industry. The organic growth story looms large in conversations with our clients, on conference stages, at exhibitor booths, and during after-hours networking.
But what about everything else?
Here are three major narratives that we have encountered outside of the industry’s renewed appetite for organic growth. For the rest of 2024 and beyond, we expect each of these to play a major role in financial services.
Artificial intelligence (AI) and its impact on wealth management
It’s hard to ignore the impact of generative AI on wealth management. Even if advisors do not currently use the technology, they are fiercely curious about its applications. We saw a number of firms at conferences that introduced their AI-driven tech to support financial advisors. These new tools tackle workflow organization, portfolio management, content creation and more. It’s exciting to see the industry lean into the application of generative AI.
One of the biggest takeaways on advisors leveraging AI: Remember, ‘Garbage in, garbage out.’ Panelists and speakers highlighted the importance of verifying source material and providing as much quality information as possible when using tools like ChatGPT.
Digital assets and blockchain technology
Cryptocurrency has renewed its overtures to financial advisors and institutional asset managers. Many advisors have hesitated to embrace crypto, but the rise of spot ETFs and the reluctant blessing of the SEC have caused many to reevaluate their stances. On the client side, investors continue to pepper their advisors with questions about digital assets, weighing FOMO against crypto’s potential long-term role in their portfolios.
The industry has watched crypto assets closely ever since the approval of 11 spot Bitcoin ETFs earlier this year. These ETFs are being deployed in ways that seem unorthodox at first glance, such as a risk-reducing element in Fidelity’s Conservative All-In-One fund. Now, as the SEC approves the sale of spot Ethereum ETFs, the digital assets sector finds itself at yet another inflection point, creating volatility in the market – raising both eyebrows and general interest from investors.
Investing in marketing
We might be biased, but we were glad to see such an emphasis placed on the importance of marketing as a long-term investment for financial advisors. Good data, strategic use of social media and other channels, and good old-fashioned authenticity are getting their time in the sun as success catalysts for growing financial advisors.
Here are some valuable and actionable takeaways for advisors to implement in their marketing plans:
USE DATA: Continuously track and adjust your efforts. It’s not enough to accumulate raw data. The magic is in connecting and interpreting feedback to make informed decisions about your marketing strategy. Focus on integrating data insights into the way you attract and win new business.
BE AUTHENTIC: Focus on your strengths. Advisors should lean into their areas of expertise. Many RIAs use very similar language to describe their service and client experience to prospects. Be unapologetically yourself to show prospects what sets you apart, and to build trust with the clients you have already earned.
ADAPT TO CHANGE: Marketing has evolved from a focus on branding and brand awareness to incorporating digital campaigns that blend marketing with business development. Advisors need to adapt to these changes and use digital tools effectively.
MAKE A PLAN: Set goals that can be tracked every quarter. Give yourself a clear objective – and the grace to learn and adapt if your goals are off-target. Marketing efforts should be guided by a top-level strategy, with platforms like LinkedIn serving as distribution channels rather than standalone strategies.
MEET YOUR PROSPECTS WHERE THEY ARE: Advisors should be flexible in their communication methods, using platforms that clients prefer, such as Instagram, Facebook, and other social media channels. The expectations and behaviors of your target clients are in constant flux. Flexibility helps you stay relevant and on-target.
Finally, remember that marketing isn’t synonymous with sales. Marketing is an investment over time. When it comes to posting and engaging online, quality content and consistency are key.