The role of the financial advisor has evolved considerably over time reflecting the impact of societal, regulatory, technological, and demographic forces. The growing prominence of millennial investors, or Generation Y representing people born between the early 1980s and 2000, will likely have dramatic impact on how advisors engage with clients. Millennials appear to have distinct needs and preferences reflecting their experiences as the first generation to mature fully engrossed with mobile technology and social media.
It is with this context that Practical Perspectives, a leading consulting and research firm, shares up-to-date insights from advisors regarding support for millennials. Also known as Generation Y, millennials now comprise the largest generation in the U.S. with more than 83 million people born between the early 1980s and early 2000s. This generation has grown up amidst a revolution in technology, which influences how these individuals make decisions regarding many aspects of their life including managing wealth and making financial decisions. While many millennials may not yet have enough assets to be prime prospects for advisors, this audience will quickly become a key target market for most advisors within the next decade. This 53-page report is based on input gathered from over 600 advisors in August 2019 related to how advisors engage with millennials today and ways this may change going forward.
Key Topic Areas:The Changing Role of Financial Advisors – Serving Millennials
Engaging with Millennials
Challenges and Opportunities in Serving Millennials
Ordering the Report
The study is available in PDF format to preferred clients for the subscription price of $2,950. To order the complete 53-page report or for more information on all our advisor-focused reports and support, please contact:
Howard Schneider, 978-590-7290 or email howard.schneider@practicalperspectives.com
Introduction and Methodology
The role of the financial advisor has evolved considerably over time reflecting the impact of demographic, regulatory, technological, and other market forces. Advisors remain a key conduit for distribution of products and services with asset managers, annuity firms, distribution platforms, and other providers all highly focused on serving the shifting needs of advisors. While any prediction of the future is by design fraught with uncertainty and unknowable factors, it is nevertheless important to consider how the role of the advisor may continue to evolve. These insights can help firms create more effective strategies and tactics in support of business development, sales, service, marketing, and new products in support of the advisor population and their end-user clients.
Our goal in this new research report from Practical Perspectives - a leading consulting and research firm focused on support for wealth management firms, product providers, and distribution platforms - is to share up-to-date insights from advisors regarding support for millennials. Also known as Generation Y, millennials now comprise the largest generation in the U.S. with more than 83 million people born between the early 1980s and early 2000s. This generation has grown up amidst a revolution in technology, which influences how these individuals make decisions regarding many aspects of their life including managing wealth and making financial decisions. While many millennials may not yet have enough assets to be prime prospects for advisors, this audience will quickly become a key target market for most advisors within the next decade.
“The Changing Role of Financial Advisors – Serving Millennials” examines advisor perspectives on the support they provide and how their engagement with millennial clients may change going forward. The study also looks at the challenges and risks advisors anticipate they must overcome and key needs for additional support. The report breaks out data and findings for the entire sample and for key advisor channels – Wirehouse/Regional employer based broker-dealers (Full Service), Independent broker-dealers, and RIAs (not affiliated with a broker-dealer).
Among the key questions addressed in this report are:
· To what extent do advisors currently serve millennials?
· How much of a priority do advisors consider it to work with millennials?
· How challenging is it to serve millennials compared to other generations?
· How well positioned are advisors to support millennials and what are the key gaps in existing capabilities?
· What are the key obstacles or challenges to working with millennials?
· What are the most critical areas for additional support to serve millennials?
· What are the most desired changes or enhancements to enable advisors to better serve millennials?
· How important is it for product providers to offer value add and practice management support related to millennials and which programs are most desired?
· In 5 years, how significant a share of assets under management and clients served will millennials represent?
· In their own words, what additional perspectives do advisors have regarding working with millennials?
This report is based on input from a randomly selected cross-section of advisors spanning key channels. In July/August 2019, advisors were asked to participate in a proprietary online survey regarding their insights concerning their changing role as an advisor. More than 600 advisors provided confidential responses that form the basis for this report. Advisors did not receive any compensation for participation in the survey. A breakout of respondents by key characteristics is as follows:
Table of Contents
Section I: Executive Summary
Section II: Introduction and Methodology
Section III: Engaging with Millennials
A. What share of advisor assets and relationships do millennials typically represent?
B. How much of a priority is it to serve millennials?
C. Compared to other generations, how challenging is it to serve millennials?
D. How well positioned are advisors to serve millennials?
E. In what role do advisors believe they have the most significant impact in serving millennials?
Section IV: Challenges and Opportunities in Serving Millennials
A. In what areas do advisors perceive they are lagging in their ability to serve millennials?
B. What do advisors consider the most significant obstacles or challenges in serving millennials?
C. What changes would improve the ability of advisors to serve millennials?
D. How important is it for advisors to receive value add and practice management support from asset managers and annuity providers related to working with millennials?
E. What types of value add and practice management support in working with millennials are most desired by advisors?
F. What share of assets managed and clients served do advisors project millennials will represent 5 years from now?
G. In their own words, what additional feedback do advisors have related to working with millennials?
Section V: Implications and Outlook
List of Exhibits
Exhibit 1: Total Share of Current Assets Managed Represented by Millennials by Channel
Exhibit 2: Total Share of Clients Served Represented by Millennials by Channel
Exhibit 3: Priority to Serve Millennials
Exhibit 4: Priority to Serve Millennials by Channel
Exhibit 5: Extent Challenging to Serve Millennials vs. Other Generations
Exhibit 6: Extent Challenging to Serve Millennials vs. Other Generations by Channel
Exhibit 7: Degree Practice is Positioned to Serve Millennials
Exhibit 8: Degree Practice is Positioned to Serve Millennials by Channel
Exhibit 9: Most Impactful Role in Serving Millennials
Exhibit 10: Most Impactful Role in Serving Millennials by Channel
Exhibit 11: Areas Lagging in Capabilities to Serve Millennials
Exhibit 12: Areas Lagging in Capabilities to Serve Millennials by Channel
Exhibit 13: Most Significant Challenges or Obstacles in Serving Millennials
Exhibit 14: Most Significant Challenges or Obstacles in Serving Millennials by Channel
Exhibit 15: Changes to Improve Ability to Serve Millennials
Exhibit 16: Changes to Improve Ability to Serve Millennials by Channel
Exhibit 17: Importance of Value Add and Practice Management Support to Serve Millennials
Exhibit 18: Importance of Value Add and Practice Management Support to Serve Millennials by Channel
Exhibit 19: Most Desired Value Add and Practice Management Support
Exhibit 20: Most Desired Value Add and Practice Management Support by Channel
Exhibit 21: Projected Share of Total Assets in 5 Years Represented by Millennials by Channel
Exhibit 22: Projected Share of Total Clients Served in 5 Years Represented by Millennials by Channel
It is with this context that Practical Perspectives, a leading consulting and research firm, shares up-to-date insights from advisors regarding support for millennials. Also known as Generation Y, millennials now comprise the largest generation in the U.S. with more than 83 million people born between the early 1980s and early 2000s. This generation has grown up amidst a revolution in technology, which influences how these individuals make decisions regarding many aspects of their life including managing wealth and making financial decisions. While many millennials may not yet have enough assets to be prime prospects for advisors, this audience will quickly become a key target market for most advisors within the next decade. This 53-page report is based on input gathered from over 600 advisors in August 2019 related to how advisors engage with millennials today and ways this may change going forward.
Key Topic Areas:The Changing Role of Financial Advisors – Serving Millennials
Engaging with Millennials
- What share of advisor assets and relationships do millennials currently represent?
- How much of a priority is it for advisors to work with millennials and how challenging is it to serve these clients?
- How well positioned are advisors to serve millennials?
- In what role do advisors believe they have the most significant impact in serving millennials?
Challenges and Opportunities in Serving Millennials
- In what areas do advisors perceive they are lagging in their ability to serve millennials?
- What are the most significant obstacles or challenges to serving millennials?
- What changes would improve the ability of advisors to work with millennials?
- How important is it for advisors to receive value-add and practice management support from asset managers and annuity providers related to serving millennials?
- What types of support in working with millennials are most desired by advisors?
- What share of assets managed and clients served do advisors project millennials will represent 5 years from now?
Ordering the Report
The study is available in PDF format to preferred clients for the subscription price of $2,950. To order the complete 53-page report or for more information on all our advisor-focused reports and support, please contact:
Howard Schneider, 978-590-7290 or email howard.schneider@practicalperspectives.com
Introduction and Methodology
The role of the financial advisor has evolved considerably over time reflecting the impact of demographic, regulatory, technological, and other market forces. Advisors remain a key conduit for distribution of products and services with asset managers, annuity firms, distribution platforms, and other providers all highly focused on serving the shifting needs of advisors. While any prediction of the future is by design fraught with uncertainty and unknowable factors, it is nevertheless important to consider how the role of the advisor may continue to evolve. These insights can help firms create more effective strategies and tactics in support of business development, sales, service, marketing, and new products in support of the advisor population and their end-user clients.
Our goal in this new research report from Practical Perspectives - a leading consulting and research firm focused on support for wealth management firms, product providers, and distribution platforms - is to share up-to-date insights from advisors regarding support for millennials. Also known as Generation Y, millennials now comprise the largest generation in the U.S. with more than 83 million people born between the early 1980s and early 2000s. This generation has grown up amidst a revolution in technology, which influences how these individuals make decisions regarding many aspects of their life including managing wealth and making financial decisions. While many millennials may not yet have enough assets to be prime prospects for advisors, this audience will quickly become a key target market for most advisors within the next decade.
“The Changing Role of Financial Advisors – Serving Millennials” examines advisor perspectives on the support they provide and how their engagement with millennial clients may change going forward. The study also looks at the challenges and risks advisors anticipate they must overcome and key needs for additional support. The report breaks out data and findings for the entire sample and for key advisor channels – Wirehouse/Regional employer based broker-dealers (Full Service), Independent broker-dealers, and RIAs (not affiliated with a broker-dealer).
Among the key questions addressed in this report are:
· To what extent do advisors currently serve millennials?
· How much of a priority do advisors consider it to work with millennials?
· How challenging is it to serve millennials compared to other generations?
· How well positioned are advisors to support millennials and what are the key gaps in existing capabilities?
· What are the key obstacles or challenges to working with millennials?
· What are the most critical areas for additional support to serve millennials?
· What are the most desired changes or enhancements to enable advisors to better serve millennials?
· How important is it for product providers to offer value add and practice management support related to millennials and which programs are most desired?
· In 5 years, how significant a share of assets under management and clients served will millennials represent?
· In their own words, what additional perspectives do advisors have regarding working with millennials?
This report is based on input from a randomly selected cross-section of advisors spanning key channels. In July/August 2019, advisors were asked to participate in a proprietary online survey regarding their insights concerning their changing role as an advisor. More than 600 advisors provided confidential responses that form the basis for this report. Advisors did not receive any compensation for participation in the survey. A breakout of respondents by key characteristics is as follows:
- Affiliation
- Full Service BD - 16%
- Independent BD – 45%
- RIAs – 37%
- Other BD – 3%
- Experience as an Advisor
- Less than 5 years – 3%
- 5 to less than 10 years – 11%
- 10 years to less than 15 years – 16%
- 15 years to less than 20 years – 16%
- 20 years or more – 54%
- Assets Under Management
- Less than $50 million – 36%
- $50 million to less than $100 million – 20%
- $100 million to less than $250 million – 22%
- $250 million or more – 21%
- Practice Structure
- Solo practitioner – 45%
- Small team (10 or fewer professionals) - 47%
- Large team (more than 10 professionals) – 8%
- Age
- 40 or younger – 16%
- 40 to 50 – 20%
- 50 to 60 – 30%
- 60 or older – 34%
Table of Contents
Section I: Executive Summary
Section II: Introduction and Methodology
Section III: Engaging with Millennials
A. What share of advisor assets and relationships do millennials typically represent?
B. How much of a priority is it to serve millennials?
C. Compared to other generations, how challenging is it to serve millennials?
D. How well positioned are advisors to serve millennials?
E. In what role do advisors believe they have the most significant impact in serving millennials?
Section IV: Challenges and Opportunities in Serving Millennials
A. In what areas do advisors perceive they are lagging in their ability to serve millennials?
B. What do advisors consider the most significant obstacles or challenges in serving millennials?
C. What changes would improve the ability of advisors to serve millennials?
D. How important is it for advisors to receive value add and practice management support from asset managers and annuity providers related to working with millennials?
E. What types of value add and practice management support in working with millennials are most desired by advisors?
F. What share of assets managed and clients served do advisors project millennials will represent 5 years from now?
G. In their own words, what additional feedback do advisors have related to working with millennials?
Section V: Implications and Outlook
List of Exhibits
Exhibit 1: Total Share of Current Assets Managed Represented by Millennials by Channel
Exhibit 2: Total Share of Clients Served Represented by Millennials by Channel
Exhibit 3: Priority to Serve Millennials
Exhibit 4: Priority to Serve Millennials by Channel
Exhibit 5: Extent Challenging to Serve Millennials vs. Other Generations
Exhibit 6: Extent Challenging to Serve Millennials vs. Other Generations by Channel
Exhibit 7: Degree Practice is Positioned to Serve Millennials
Exhibit 8: Degree Practice is Positioned to Serve Millennials by Channel
Exhibit 9: Most Impactful Role in Serving Millennials
Exhibit 10: Most Impactful Role in Serving Millennials by Channel
Exhibit 11: Areas Lagging in Capabilities to Serve Millennials
Exhibit 12: Areas Lagging in Capabilities to Serve Millennials by Channel
Exhibit 13: Most Significant Challenges or Obstacles in Serving Millennials
Exhibit 14: Most Significant Challenges or Obstacles in Serving Millennials by Channel
Exhibit 15: Changes to Improve Ability to Serve Millennials
Exhibit 16: Changes to Improve Ability to Serve Millennials by Channel
Exhibit 17: Importance of Value Add and Practice Management Support to Serve Millennials
Exhibit 18: Importance of Value Add and Practice Management Support to Serve Millennials by Channel
Exhibit 19: Most Desired Value Add and Practice Management Support
Exhibit 20: Most Desired Value Add and Practice Management Support by Channel
Exhibit 21: Projected Share of Total Assets in 5 Years Represented by Millennials by Channel
Exhibit 22: Projected Share of Total Clients Served in 5 Years Represented by Millennials by Channel
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