A greater number of financial advisors are prioritizing building collaborative client relationships, finds the latest research by the Financial Planning Association and Allianz Life.
The findings, which fielded responses from 387 financial planners, 74% of advisors are investing additional time in managing client relationships, while 67% are shifting their business models to work with more clients who see their relationship as a unified partnership.
The research shows that advisors are aspiring to be more client-centered—88% want to learn more about their clients’ values and beliefs to incorporate them into financial plans, while 76% are broadening their approach to incorporate a wider range of client needs.
Furthermore, the research found that 92% of planners are enhancing their technical skills and those of their teams to better serve clients; 81% of specialized firms are focused on building teams with diverse skill sets to support a broader range of client needs. Similarly, 81% of specialized firms agree they will deliver more specialized planning to support the unique needs of specific populations.
“Financial planning is a young but rapidly evolving profession due to the growth of awareness about the importance of planning for long-term financial objectives and various external factors, including advancements in financial technology and the increased diversity of clients,” said 2024 FPA President Claudia Kane, CFP. “This important research uncovers the perceptions of financial planners as to how they may need to adapt their businesses and client engagement due to the changing landscape in the years ahead.”
As more firms expand their client base (65%), 71% of companies are recruiting diverse planners. Millennials were the most likely out of all age cohorts to anticipate changing their business models to meet the needs of diverse clients and work collaboratively.
Planners say they’re evolving their business models as more clients see the value in financial planning (89%), while others are changing their practice to engage younger generations in financial education (86%), or to satisfy regulatory requirements (82%).
More information on the study can be found here.
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.