NEW YORK, April 27, 2020
/PRNewswire/ -- Broadridge Financial Solutions,
Inc. (NYSE: BR), a global
Fintech leader, today released results from a survey of over 300
financial advisors, revealing that financial advisors are
accelerating the transition of their business models to offer more
holistic financial wellness services.
Fifty-one percent of surveyed advisors stated that there will be
an increased focus on holistic financial planning within their
practices moving forward. Younger advisors (under 40) are four
times more likely than older advisors (over 55) to believe that the
main value they provide to clients is holistic financial
planning.
As advisors aim to meet increasing investor demand for financial
planning, survey respondents also expect to move toward a team
structure as opposed to working in solo practices. In three years,
nearly 8 out of 10 advisors expect to be part of a team. The survey
also revealed that the number of advisors with 75% or more
fee-based assets under management (AUM) will increase from 51% to
67% over the next three years.
"While we surveyed advisors prior to widespread quarantining,
our perspective is that the current global environment has
intensified pre-existing trends. As advisors accelerate the move to
holistic planning in part due to this, they need two things: a
digital-first mindset and broad support from asset managers," said
Matthew Schiffman, Principal of
Distribution Insight at Broadridge Financial Solutions. "For the
latter, the onus is on asset managers to address advisor and
ultimately investor concerns – particularly ones that are
exacerbated by the global crisis we are in. For the former, there
is simply no longer a choice. The industry has been inching toward
digital distribution of content and communication for some time,
and overnight, we stopped inching and took the full leap."
How Asset Managers Can Build Stronger Relationships Amid
Advisor Changes
Almost 80% of advisors are looking for asset managers to help
them optimize their businesses, and 78% stated they want support on
portfolio construction and risk management. However, only 25% of
advisors were found to actively seek out new relationships with
asset managers.
Advisors continue to seek assistance on digital transformation
efforts, notably looking for support from asset managers on
building a tech stack (57%, e.g., CRM, financial planning software,
and data analytics) and strategies for outsourcing (41%).
The survey also uncovered an opportunity for managers to provide
support around generational and demographic shifts in investing.
More than half of advisor respondents (59%) expressed interest in
receiving content on how to market to women and minorities.
Similarly, 71% of advisors expressed interest in acquiring new
millennial investor clients.
Advisors cited wholesalers, whitepapers (or other thought
leadership) and websites as the top preferred ways to receive
content and support from asset managers.
Methodology
This Broadridge survey was conducted by 8
Acre Perspective to assess the world of financial advice and
guidance. A total of 300 financial advisors across wire, regional,
IBD and RIA channels completed the survey, which was fielded from
February 21 to March 1, 2020. For
further details on survey methodology, please contact a Broadridge
media representative.
About Broadridge
Broadridge Financial Solutions, Inc.
(NYSE: BR), a $4 billion global
Fintech leader, is a leading provider of investor communications
and technology-driven solutions to banks, broker-dealers, asset and
wealth managers and corporate issuers. Broadridge's infrastructure
underpins proxy voting services for over 50 percent of public
companies and mutual funds globally, and processes on average more
than U.S.$7 trillion in fixed income
and equity securities trades per day. Broadridge is part of the
S&P 500® Index and employs over 11,000 associates in 18
countries.
For more information about Broadridge, please visit
www.broadridge.com.
Media Contacts:
Matthew Luongo
Prosek Partners
+1 646-818-9279
mluongo@prosek.com
Linda Namias
Broadridge Financial Solutions
+1 631-254-7711
Linda.Namias@broadridge.com
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SOURCE Broadridge Financial Solutions, Inc.