For asset managers, annuity firms, and other service and solutions providers, wholesaling is a key imperative driving ongoing business development. In recent years, there has been significant consideration regarding how wholesaling is evolving in an increasingly hi-tech and data-driven environment. Many firms are looking to adapt “robo-wholesaling” or a more technology-oriented approach to supplement if not supplant the role of the traditional field wholesaler. Yet many advisors are older and not necessarily interested or comfortable in changing how they receive information and sales assistance, preferring to rely on established relationships and face-to-face interaction. Considering what the future holds for wholesaling makes it even more important to understand advisor perceptions of sales outreach and support and their changing needs for assistance.
It is with this context that Practical Perspectives, a leading consulting and research firm, examines how advisors interact with and leverage wholesaling support from key sources. This new 90-page report builds on prior studies and offers detailed, data driven observations and trends related to the challenges that advisors perceive and how they respond to wholesaling efforts. This new study offers a fresh examination of the importance of wholesaling to advisors, the impact of wholesaling on building business, interest and use of technology-oriented wholesaling approaches, and the needs and requirements of advisors for additional assistance. It also looks at which firms offer the most useful wholesaling support and how advisors behaviors and needs vary across key channels. Input from more than 600 advisors gathered in June/July 2019 is used as the basis for the report.
Key Topic Areas – Changes in Wholesaling: The Advisors View
How Advisors Engage with Wholesalers
The Evolving Delivery of Wholesaler Support to Advisors
Wholesaling and Driving Advisors to Act
Ordering the Report
The study is available in PDF format to preferred clients for the subscription price of $4,650. To order the complete 90-page, 57-exhibit report or for more information on our reports and support, please contact:
Howard Schneider, 978-590-7290
or email howard.schneider@practicalperspectives.com
Introduction and Methodology
Wholesaling is crucial to the organic business growth of asset managers, annuity/insurance providers, and other firms reliant on financial advisors for distribution of their products and services. The role of the wholesaler is to engage and build relationships with advisors while providing access to information, support, and products that help advisors manage their practices and meet the needs of clients. In recent years, there has been significant discussion about the changing nature of wholesaler support and how to best deliver capabilities in an increasingly technology-based environment. Many observers have speculated on the ability of “robo-wholesaling” or more technology driven approaches to supplement if not supplant the role of the traditional field wholesaler. Other questions relate to the importance of wholesaling in reaching attractive target audiences such as RIAs or on changes within the broker-dealer channels in vetting and supporting investment and annuity solutions. These questions and concerns exist as part of a broader landscape in which the role of the advisor is evolving rapidly. This makes it even more important to understand advisor view of wholesaling, how their needs for support are shifting, and what constitutes best practices from their distinct perspective.
This new report builds off our prior research to take a deep dive into advisor thoughts and behaviors regarding wholesaling support and follows up a similar study fielded in 2018. As with all our studies, the emphasis is on sharing key insights and findings from the singular perspective of financial advisors working actively in the field today. This in-depth report combines distinct research insights with practical, consulting oriented analysis. The report is designed and written to provide relevant, actionable information to key constituents including asset managers, annuity providers, broker-dealers, distribution platforms, and other firms interested in learning more about how to deliver wholesaling support in an evolving marketplace.
“Changes in Wholesaling: The Advisors View - 2019” examines many aspects of how advisors interact with and leverage wholesaling support from key sources. The analysis looks in detail at specific elements of wholesaling from the advisor point of view including the characteristics of the most useful support, the impact of wholesaling on advisor behavior, the need for enhanced capabilities, and the extent to which in-person engagement is important relative to more technology-oriented approaches. The analysis also provides a detailed profile of different advisor segments to help product providers and distributors develop and make available more targeted and effective wholesaling capabilities that reflect differences across key distribution channels.
Among the major questions addressed in this report are:
· How valuable is wholesaling to advisors and how willing are they to engage with wholesalers?
· What are the typical sources of wholesaling outreach to advisors and how receptive are advisors to contact from various sources?
· How many contacts from wholesalers do advisors receive and how has this been changing over time?
· What are the most typical formats of wholesaling contact to advisors and which are most likely to drive advisors to subsequent action?
· What do advisors perceive wholesalers do best and in turn, less well?
· What approach to wholesaling do advisors prefer including specialist vs. generalist and face-to-face vs. remote?
· What are the characteristics of the most useful wholesaling efforts?
· Which firms do advisors believe offer the most useful and impactful wholesaling support?
· What changes would be most valued by advisors to enhance the value of wholesaling outreach?
· To what extent are technology-based wholesaling efforts supplanting in-person contacts and how receptive are advisors to these approaches?
· What actions are advisors most likely to take because of wholesaling outreach?
· On which aspects of advisor behavior does wholesaling have the most significant impact?
· How do advisors define the wholesaling support they consider most beneficial?
· To what extent do advisors perceive wholesaling to be customized and how willing are they to work with wholesalers to develop a more tailored approach?
This report is based on input from a broad cross-section of advisors across key channels including Full Service broker-dealers (Wirehouse, Regional, and National employer-based firms), Independent broker-dealers, and independent fee-based RIAs. In June/July 2019, advisors were asked to participate in an on-line survey regarding support available to them in running their practice. Advisors were randomly solicited across all delivery channels. More than 600 advisor responses were used as the basis for this report. Advisors did not receive any compensation for participation in the survey. Findings in the report are provided for the complete sample as well as for the largest distribution channels – Full Service, Independent, and RIA. Results are also compared to previous research when possible.
Table of Contents
Section I: Executive Summary
Section II: Introduction and Methodology
Section III: Advisors Engaging with Wholesalers
A. How valuable is wholesaling to advisors?
B. How willing are advisors to interact with wholesalers?
C. Which types of providers direct the most wholesaling outreach to advisors?
D. How many contacts from wholesalers do advisors receive and how do advisors perceive the volume of contact from key sources?
E. Which types of wholesalers do advisors typically interact with?
F. What are the most typical formats of wholesaling outreach directed to advisors?
G. Who typically initiates wholesaler outreach?
H. How has advisor interaction with wholesalers changed in the past year?
Section IV: The Evolving Delivery of Wholesaler Support to Advisors
A. What do advisors consider wholesalers do best and what are areas for potential improvement?
B. Do advisors prefer a specialist wholesaler or a generalist approach to wholesaling?
C. Is effective wholesaling outreach dependent on the firm or the individual wholesaler?
D. To what extent are technology-based wholesaling approaches supplanting in-person contacts?
E. How receptive are advisors to technology-based wholesaling outreach compared to more traditional in-person contacts?
F. What characteristics define the most useful wholesalers?
G. What changes would increase the usefulness and impact of wholesaling to advisors?
H. What specific providers offer the most effective and useful wholesaling support?
Section V: Wholesaling and Driving Advisors to Take Action
A. To what extent does wholesaling outreach drive advisors to act?
B. On which aspects of advisor behavior do wholesalers have the most significant impact?
C. Which formats of wholesaling outreach are most likely to cause advisors to take subsequent action?
D. What specific actions do advisors typically take through interactions with wholesalers?
E. How many contacts from a wholesaler do advisors typically require before considering solutions available from a provider?
F. To what extent do advisors perceive wholesaling to be customized and how willing are they to share information to receive more targeted wholesaling?
G. In their own words, how do advisors describe the wholesaling support they consider most useful?
Section VI: Characteristics of Respondents
Section VII: Outlook and Implications
List of Exhibits
Exhibit 1: Value of Wholesaling to Advisors
Exhibit 2: Value of Wholesaling to Advisors by Channel
Exhibit 3: Advisors Willingness to Interact with Wholesalers
Exhibit 4: Advisors Willingness to Interact with Wholesalers by Channel
Exhibit 5: Share of Wholesaling Contacts from Key Sources in Past 90 Days
Exhibit 6: More than 30% of Wholesaling Contacts from Key Sources in Past 90 Days by Channel
Exhibit 7: Total Contacts from Wholesalers in Past 90 Days
Exhibit 8: Total Contacts from Wholesalers in Past 90 Days by Channel
Exhibit 9: Reaction to Volume of Wholesaler Contacts from Key Sources
Exhibit 10: Advisors Perception of Too Much Wholesaler Contact from Key Sources by Channel
Exhibit 11: Interactions with Wholesalers in Past 90 Days
Exhibit 12: More than 30% of Interactions with Wholesalers in Past 90 Days by Channel
Exhibit 13: Typical Format of Wholesaler Contact to Advisors in Past 90 Days
Exhibit 14: Typical Format of Wholesaler Contact to Advisors in Past 90 Days by Channel
Exhibit 15: Source Initiating Wholesaler Contact
Exhibit 16: Source Initiating Wholesaler Contact by Channel
Exhibit 17: Change in Willingness to Interact with Wholesalers in Past 12 Months
Exhibit 18: Increased Willingness to Interact with Wholesalers in Past 12 Months by Channel
Exhibit 19: Decreased Willingness to Interact with Wholesalers in Past 12 Months by Channel
Exhibit 20: Changes in Key Aspects of Wholesaling in Past 12 Months
Exhibit 21: Increase in Key Aspects of Wholesaling in Past 12 Months by Channel
Exhibit 22: Decrease in Key Aspects of Wholesaling in Past 12 Months by Channel
Exhibit 23: Advisors Perception of What Wholesalers Do Best
Exhibit 24: Advisors Perception of What Wholesalers Do Best by Channel
Exhibit 25: Advisors Perception of What Wholesalers Do Less Well
Exhibit 26: Advisors Perception of What Wholesalers Do Less Well by Channel
Exhibit 27: Preferred Wholesaler Approach – Generalist vs. Specialist
Exhibit 28: Preferred Wholesaler Approach – Generalist vs. Specialist by Channel
Exhibit 29: Effective Wholesaling – Individual Wholesaler vs. Firm Approach
Exhibit 30: Effective Wholesaling – Individual Wholesaler vs. Firm Approach by Channel
Exhibit 31: In-Person vs. Technology-Based Approach for Most Recent Wholesaler Interaction
Exhibit 32: In-Person vs. Technology-Based Approach for Most Recent Wholesaler Interaction by Channel
Exhibit 33: Preference for Technology-Based vs. Traditional In-Person Wholesaling
Exhibit 34: Preference for Technology-Based vs. Traditional In-Person Wholesaling by Channel
Exhibit 35: Characteristics of Most Useful Wholesalers
Exhibit 36: Characteristics of Most Useful Wholesalers by Channel
Exhibit 37: Changes to Increase Usefulness and Impact of Wholesaling
Exhibit 38: Changes to Increase Usefulness and Impact of Wholesaling by Channel
Exhibit 39: Providers of Most Useful and Impactful Wholesaling Support
Exhibit 40: Providers of Most Useful and Impactful Wholesaling Support by Channel
Exhibit 41: Percentage of Wholesaling Contacts Resulting in Advisors Taking Further Action in Past 90 Days
Exhibit 42: Percentage of Wholesaling Contacts Resulting in Advisors Taking Further Action in Past 90 Days by Channel
Exhibit 43: Wholesalers Greatest Impact on Advisors
Exhibit 44: Wholesalers Greatest Impact on Advisors by Channel
Exhibit 45: Format of Wholesaling Outreach Resulting in Advisors Taking Subsequent Action in Past 90 Days
Exhibit 46: Format of Wholesaling Outreach Resulting in Advisors Taking Subsequent Action in Past 90 Days by Channel
Exhibit 47: Advisors Actions in Past 90 Days from Wholesaler Interaction
Exhibit 48: Advisors Actions in Past 90 Days from Wholesaler Interaction by Channel
Exhibit 49: Number of Contacts from a Specific Wholesaler Before Considering Solutions
Exhibit 50: Number of Contacts from a Specific Wholesaler Before Considering Solutions by Channel
Exhibit 51: Extent Wholesaling is Customized
Exhibit 52: Extent Wholesaling is Customized by Channel
Exhibit 53: Willingness to Share Information to Receive More Customized Wholesaling Support
Exhibit 54: Willingness to Share Information to Receive More Customized Wholesaling Support by Channel
Exhibit 55: Profile of Respondents by Key Characteristic
Exhibit 56: Use of Investment and Annuity Solutions
Exhibit 57: Significant Use of Investment and Annuity Solutions by Channel
It is with this context that Practical Perspectives, a leading consulting and research firm, examines how advisors interact with and leverage wholesaling support from key sources. This new 90-page report builds on prior studies and offers detailed, data driven observations and trends related to the challenges that advisors perceive and how they respond to wholesaling efforts. This new study offers a fresh examination of the importance of wholesaling to advisors, the impact of wholesaling on building business, interest and use of technology-oriented wholesaling approaches, and the needs and requirements of advisors for additional assistance. It also looks at which firms offer the most useful wholesaling support and how advisors behaviors and needs vary across key channels. Input from more than 600 advisors gathered in June/July 2019 is used as the basis for the report.
Key Topic Areas – Changes in Wholesaling: The Advisors View
How Advisors Engage with Wholesalers
- How valuable is wholesaling to advisors and how willing are advisors to interact with wholesalers?
- What are the most typical sources and formats of wholesaling outreach to advisors?
- How has advisor interaction with wholesalers changed in the past year?
The Evolving Delivery of Wholesaler Support to Advisors
- What do advisors consider wholesalers do best and in turn, less well?
- To what extent are technology-based wholesaling approaches supplanting in-person contacts?
- What characteristics define the most useful wholesaling outreach?
- Which specific providers offer the most effective and useful wholesaling support?
- What changes would increase the usefulness and impact of wholesaling?
Wholesaling and Driving Advisors to Act
- To what extent does wholesaling drive advisors to act and what specific actions do advisors typically take from these interactions?
- On which aspects of advisor behavior do wholesalers have the most impact?
- How customized is wholesaling outreach and how willing are advisors to share information to receive more targeted outreach?
- How do advisors describe the wholesaling support they consider most useful?
Ordering the Report
The study is available in PDF format to preferred clients for the subscription price of $4,650. To order the complete 90-page, 57-exhibit report or for more information on our reports and support, please contact:
Howard Schneider, 978-590-7290
or email howard.schneider@practicalperspectives.com
Introduction and Methodology
Wholesaling is crucial to the organic business growth of asset managers, annuity/insurance providers, and other firms reliant on financial advisors for distribution of their products and services. The role of the wholesaler is to engage and build relationships with advisors while providing access to information, support, and products that help advisors manage their practices and meet the needs of clients. In recent years, there has been significant discussion about the changing nature of wholesaler support and how to best deliver capabilities in an increasingly technology-based environment. Many observers have speculated on the ability of “robo-wholesaling” or more technology driven approaches to supplement if not supplant the role of the traditional field wholesaler. Other questions relate to the importance of wholesaling in reaching attractive target audiences such as RIAs or on changes within the broker-dealer channels in vetting and supporting investment and annuity solutions. These questions and concerns exist as part of a broader landscape in which the role of the advisor is evolving rapidly. This makes it even more important to understand advisor view of wholesaling, how their needs for support are shifting, and what constitutes best practices from their distinct perspective.
This new report builds off our prior research to take a deep dive into advisor thoughts and behaviors regarding wholesaling support and follows up a similar study fielded in 2018. As with all our studies, the emphasis is on sharing key insights and findings from the singular perspective of financial advisors working actively in the field today. This in-depth report combines distinct research insights with practical, consulting oriented analysis. The report is designed and written to provide relevant, actionable information to key constituents including asset managers, annuity providers, broker-dealers, distribution platforms, and other firms interested in learning more about how to deliver wholesaling support in an evolving marketplace.
“Changes in Wholesaling: The Advisors View - 2019” examines many aspects of how advisors interact with and leverage wholesaling support from key sources. The analysis looks in detail at specific elements of wholesaling from the advisor point of view including the characteristics of the most useful support, the impact of wholesaling on advisor behavior, the need for enhanced capabilities, and the extent to which in-person engagement is important relative to more technology-oriented approaches. The analysis also provides a detailed profile of different advisor segments to help product providers and distributors develop and make available more targeted and effective wholesaling capabilities that reflect differences across key distribution channels.
Among the major questions addressed in this report are:
· How valuable is wholesaling to advisors and how willing are they to engage with wholesalers?
· What are the typical sources of wholesaling outreach to advisors and how receptive are advisors to contact from various sources?
· How many contacts from wholesalers do advisors receive and how has this been changing over time?
· What are the most typical formats of wholesaling contact to advisors and which are most likely to drive advisors to subsequent action?
· What do advisors perceive wholesalers do best and in turn, less well?
· What approach to wholesaling do advisors prefer including specialist vs. generalist and face-to-face vs. remote?
· What are the characteristics of the most useful wholesaling efforts?
· Which firms do advisors believe offer the most useful and impactful wholesaling support?
· What changes would be most valued by advisors to enhance the value of wholesaling outreach?
· To what extent are technology-based wholesaling efforts supplanting in-person contacts and how receptive are advisors to these approaches?
· What actions are advisors most likely to take because of wholesaling outreach?
· On which aspects of advisor behavior does wholesaling have the most significant impact?
· How do advisors define the wholesaling support they consider most beneficial?
· To what extent do advisors perceive wholesaling to be customized and how willing are they to work with wholesalers to develop a more tailored approach?
This report is based on input from a broad cross-section of advisors across key channels including Full Service broker-dealers (Wirehouse, Regional, and National employer-based firms), Independent broker-dealers, and independent fee-based RIAs. In June/July 2019, advisors were asked to participate in an on-line survey regarding support available to them in running their practice. Advisors were randomly solicited across all delivery channels. More than 600 advisor responses were used as the basis for this report. Advisors did not receive any compensation for participation in the survey. Findings in the report are provided for the complete sample as well as for the largest distribution channels – Full Service, Independent, and RIA. Results are also compared to previous research when possible.
Table of Contents
Section I: Executive Summary
Section II: Introduction and Methodology
Section III: Advisors Engaging with Wholesalers
A. How valuable is wholesaling to advisors?
B. How willing are advisors to interact with wholesalers?
C. Which types of providers direct the most wholesaling outreach to advisors?
D. How many contacts from wholesalers do advisors receive and how do advisors perceive the volume of contact from key sources?
E. Which types of wholesalers do advisors typically interact with?
F. What are the most typical formats of wholesaling outreach directed to advisors?
G. Who typically initiates wholesaler outreach?
H. How has advisor interaction with wholesalers changed in the past year?
Section IV: The Evolving Delivery of Wholesaler Support to Advisors
A. What do advisors consider wholesalers do best and what are areas for potential improvement?
B. Do advisors prefer a specialist wholesaler or a generalist approach to wholesaling?
C. Is effective wholesaling outreach dependent on the firm or the individual wholesaler?
D. To what extent are technology-based wholesaling approaches supplanting in-person contacts?
E. How receptive are advisors to technology-based wholesaling outreach compared to more traditional in-person contacts?
F. What characteristics define the most useful wholesalers?
G. What changes would increase the usefulness and impact of wholesaling to advisors?
H. What specific providers offer the most effective and useful wholesaling support?
Section V: Wholesaling and Driving Advisors to Take Action
A. To what extent does wholesaling outreach drive advisors to act?
B. On which aspects of advisor behavior do wholesalers have the most significant impact?
C. Which formats of wholesaling outreach are most likely to cause advisors to take subsequent action?
D. What specific actions do advisors typically take through interactions with wholesalers?
E. How many contacts from a wholesaler do advisors typically require before considering solutions available from a provider?
F. To what extent do advisors perceive wholesaling to be customized and how willing are they to share information to receive more targeted wholesaling?
G. In their own words, how do advisors describe the wholesaling support they consider most useful?
Section VI: Characteristics of Respondents
Section VII: Outlook and Implications
List of Exhibits
Exhibit 1: Value of Wholesaling to Advisors
Exhibit 2: Value of Wholesaling to Advisors by Channel
Exhibit 3: Advisors Willingness to Interact with Wholesalers
Exhibit 4: Advisors Willingness to Interact with Wholesalers by Channel
Exhibit 5: Share of Wholesaling Contacts from Key Sources in Past 90 Days
Exhibit 6: More than 30% of Wholesaling Contacts from Key Sources in Past 90 Days by Channel
Exhibit 7: Total Contacts from Wholesalers in Past 90 Days
Exhibit 8: Total Contacts from Wholesalers in Past 90 Days by Channel
Exhibit 9: Reaction to Volume of Wholesaler Contacts from Key Sources
Exhibit 10: Advisors Perception of Too Much Wholesaler Contact from Key Sources by Channel
Exhibit 11: Interactions with Wholesalers in Past 90 Days
Exhibit 12: More than 30% of Interactions with Wholesalers in Past 90 Days by Channel
Exhibit 13: Typical Format of Wholesaler Contact to Advisors in Past 90 Days
Exhibit 14: Typical Format of Wholesaler Contact to Advisors in Past 90 Days by Channel
Exhibit 15: Source Initiating Wholesaler Contact
Exhibit 16: Source Initiating Wholesaler Contact by Channel
Exhibit 17: Change in Willingness to Interact with Wholesalers in Past 12 Months
Exhibit 18: Increased Willingness to Interact with Wholesalers in Past 12 Months by Channel
Exhibit 19: Decreased Willingness to Interact with Wholesalers in Past 12 Months by Channel
Exhibit 20: Changes in Key Aspects of Wholesaling in Past 12 Months
Exhibit 21: Increase in Key Aspects of Wholesaling in Past 12 Months by Channel
Exhibit 22: Decrease in Key Aspects of Wholesaling in Past 12 Months by Channel
Exhibit 23: Advisors Perception of What Wholesalers Do Best
Exhibit 24: Advisors Perception of What Wholesalers Do Best by Channel
Exhibit 25: Advisors Perception of What Wholesalers Do Less Well
Exhibit 26: Advisors Perception of What Wholesalers Do Less Well by Channel
Exhibit 27: Preferred Wholesaler Approach – Generalist vs. Specialist
Exhibit 28: Preferred Wholesaler Approach – Generalist vs. Specialist by Channel
Exhibit 29: Effective Wholesaling – Individual Wholesaler vs. Firm Approach
Exhibit 30: Effective Wholesaling – Individual Wholesaler vs. Firm Approach by Channel
Exhibit 31: In-Person vs. Technology-Based Approach for Most Recent Wholesaler Interaction
Exhibit 32: In-Person vs. Technology-Based Approach for Most Recent Wholesaler Interaction by Channel
Exhibit 33: Preference for Technology-Based vs. Traditional In-Person Wholesaling
Exhibit 34: Preference for Technology-Based vs. Traditional In-Person Wholesaling by Channel
Exhibit 35: Characteristics of Most Useful Wholesalers
Exhibit 36: Characteristics of Most Useful Wholesalers by Channel
Exhibit 37: Changes to Increase Usefulness and Impact of Wholesaling
Exhibit 38: Changes to Increase Usefulness and Impact of Wholesaling by Channel
Exhibit 39: Providers of Most Useful and Impactful Wholesaling Support
Exhibit 40: Providers of Most Useful and Impactful Wholesaling Support by Channel
Exhibit 41: Percentage of Wholesaling Contacts Resulting in Advisors Taking Further Action in Past 90 Days
Exhibit 42: Percentage of Wholesaling Contacts Resulting in Advisors Taking Further Action in Past 90 Days by Channel
Exhibit 43: Wholesalers Greatest Impact on Advisors
Exhibit 44: Wholesalers Greatest Impact on Advisors by Channel
Exhibit 45: Format of Wholesaling Outreach Resulting in Advisors Taking Subsequent Action in Past 90 Days
Exhibit 46: Format of Wholesaling Outreach Resulting in Advisors Taking Subsequent Action in Past 90 Days by Channel
Exhibit 47: Advisors Actions in Past 90 Days from Wholesaler Interaction
Exhibit 48: Advisors Actions in Past 90 Days from Wholesaler Interaction by Channel
Exhibit 49: Number of Contacts from a Specific Wholesaler Before Considering Solutions
Exhibit 50: Number of Contacts from a Specific Wholesaler Before Considering Solutions by Channel
Exhibit 51: Extent Wholesaling is Customized
Exhibit 52: Extent Wholesaling is Customized by Channel
Exhibit 53: Willingness to Share Information to Receive More Customized Wholesaling Support
Exhibit 54: Willingness to Share Information to Receive More Customized Wholesaling Support by Channel
Exhibit 55: Profile of Respondents by Key Characteristic
Exhibit 56: Use of Investment and Annuity Solutions
Exhibit 57: Significant Use of Investment and Annuity Solutions by Channel
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