How Financial Advisors Can Meet Rising Client Expectations

In our evolving financial landscape, client expectations are undergoing a significant transformation. Financial advisors are experiencing a shift where the once-prevailing lifestyle practice model is becoming less viable, and clients are increasingly demanding more comprehensive services and advanced technology. This evolution is leading to a natural wave of strategic acquisitions and consolidation within the industry.

Clients no longer settle for basic financial advice; they want detailed planning and innovative solutions. Smaller practices that either can't or won't meet these rising demands may find themselves struggling to compete. As a result, we are seeing movement to larger platforms, with strategic acquisitions becoming more prevalent to jump into these solutions. This is driven by the necessity for practices to meet the evolving needs of their clients.

The Growing Demand for Comprehensive Financial Planning

As we continue to observe these trends, it’s clear that clients are not just looking for portfolio management but comprehensive financial planning service and detailed access through technology. Some suggest that fee compression might be pushing this shift, but the core driver is the demand for more holistic planning. Clients want their advisors to provide more than just investment management; they want a complete picture of their financial game plan.

Advisors who have traditionally focused solely on investment management are finding the transition to comprehensive financial planning daunting. For a seasoned advisor, deciding to suddenly get a Certified Financial Planner (CFP) designation might feel overwhelming. Therefore, acquiring a business that already has CFP capabilities or merging with a firm that offers such services is becoming a viable solution. This addresses the clients' demands while ensuring that the advisor can continue to provide value and address business limitations.

Case in Point: The Aging Advisor’s Dilemma

A recent conversation with an aging advisor encapsulates this sentiment perfectly. This particular advisor, who prides himself on his portfolio management expertise, is preparing to sell his practice. He regretted not incorporating financial planning into his service model early on, realizing that it would have provided a deeper relationship with his clients and a better understanding of their needs. This advisor wished he had offered both investment and financial planning services to forge stronger and more comprehensive client relationships as well as be able to serve a larger client base.

As he prepares for succession, his primary requirement for a successor is clear: They must be able to offer thorough financial planning services. He recognizes the value of integrating clients into a holistic investment management philosophy that includes detailed planning. This realization underscores the broader industry trend—the rise in client demands for comprehensive service models that go beyond basic portfolio management.

What's Next?

The financial advisory landscape is in flux, driven by clients' increasing demands for comprehensive financial planning and advanced technological services. Advisors must navigate these changes by either expanding their service offerings or aligning with firms that can fulfill these needs. Those who fail to adapt may find themselves left behind, while those who embrace these changes will likely thrive in a more consolidated and competitive market.

SkyView Partners is here to support financial advisors in this pivotal transition. With our expertise in M&A, investment banking, and financing, we provide tailored solutions to help advisors expand their service offerings and meet their clients' rising demands. Whether you're looking to acquire a firm with CFP capabilities, merge with a larger firm, or secure financing for your strategic growth, SkyView Partners can help you navigate the complexities of this evolving landscape.

Schedule a consultation with SkyView Partners today to learn more about how we can help you meet client expectations and drive your business forward.

Schedule a consultation