Financial advice firms who want to ensure they have enough younger advisors coming in as their older advisors retire will need to ensure they’re up to speed with their technology and social media, according to a recent study.
The average advisor is around 55 years old, and only 11% of advisors are under 40, J.D. Power says in its recent Financial Advisor Satisfaction Study, which polled 3,571 employee and independent financial advisors from January through May.
To boost the ranks of their younger advisors, wealth management practices will need to meet the demands of this generation of “digital natives,” J.D. Power says.
For now, many firms are falling behind, according to the study: 26% of employee advisors under 40 aren’t aware or don’t use smartphone-friendly tools and 49% don’t use tablet-friendly tools. At firms that do provide such mobile tools, younger advisors who don’t use them are more than twice as likely to say it’s due to poor integration, J.D. Power says.
Meanwhile, 42% of employee advisors under 40 say their firms don’t let them use social media for connecting with clients and prospects, even though 64% of advisors who have used it say it helps strengthen relationships and 47% say it’s even helped them get new business, according to the study.
“Wealth management firms that embrace these technologies and train and empower advisors to use them effectively will ultimately win the war for talent, but very few are delivering the solutions that younger advisors demand,” Mike Foy, senior director of the wealth and lending intelligence at J.D. Power, says in a statement.
Commonwealth Financial ranks highest among independent advisors, followed by Cambridge and Raymond James Financial Services, J.D. Power found.