The beginning of fall marks the final quarter of the calendar year and the countdown to what is always a hectic holiday season. But even in the midst of the busyness and shortened days, it can still be a time to purposefully reflect on what really matters to us.
Similarly, this time allows financial institutions and their advisors to reflect back on what has created the most success for them in their businesses.
Reflection, though, should be followed by action. And these final months of the year may be a perfect time for firms to consider how they can create more value to attract new advisors – and for individual advisors to make a critical decision about where to continue their advisory careers.
Whether you’re a financial advisor looking to make your move, an executive at an RIA seeking new advisors, or a recruiter helping to facilitate new relationships, there are five things you need to know that will make the advisor transitions you’re a part of a success.
A Smooth Transition Starts Before a Decision is Made
The first step in a successful advisor transition is to understand that planning is everything.
On the firm side, a process needs to be created to establish the advisor transition services that will be offered. Where does the firm support new advisors, and how do responsibilities divide?
On the advisor side, an individual needs to know answers to the same questions about how their transition will be managed, but they also have the additional responsibility of being certain that their move is the right personal decision.
If there is any hesitancy or uncertainty, slow down the due diligence process to be certain that you have every step in your process detailed out, no matter your role in the entire project. And if necessary, take a step back to add a partner with proven workflows you can follow to help guide you through.
If you’re considering a transition, don’t start your process without consulting this guide.
An Advisor Transition Includes the Client Experience Too
You may think that advisor transitions are primarily about the advisor and firm experience, and technically you aren’t wrong. However, because an advisor’s business is really fully focused on their clients it’s important to recognize the experience that their clients will have during a transition as well.
If the client experience during an advisor transition goes wrong, the entire transition is at risk.
The client experience during a transition is mostly about advisor communication and paperwork, which leads us to our next truth about transitions.
The Future of Advisor Transitions is Digital
For years, a paperless onboarding process was only a dream for financial advisors. Today, however, it’s a reality – and the firms and advisors who experience the best and most seamless transitions will be those who embrace a digital process.
With API-based new account opening and a completely digital client paperwork workflow, firms can help ease the headache of oversight and compliance during transitions, while also giving advisors and their clients a tremendous experience that removes barriers and shortens the time it takes to move assets to a new firm.
The Importance of Technology in Advisor Transitions
You can’t have a paperless onboarding process without the right technology, of course, and as much as the wealth management business is about people, those relationships have to be supported by incredible technology solutions too.
Simply put, advisor transition services that don’t leverage leading technology will suffer compared to those who do.
Technology does help bring efficiency to the mountains of paperwork, compliance tasks, and other considerations during an advisor transition. But technology also helps in every way – even ones like client communication, by helping to standardize outreach to clients and keep all those communications in a single, compliant location.
Whether you’re adhering to Broker Protocol or simply moving from one RIA to another, the right technology stack can make all the difference in how eager clients are to make the move.
Minimizing Revenue Disruption is a Priority
Many times, the most difficult part of an advisor transition is the revenue gap caused by inefficiencies in the process. This is prominent for advisors as they need to fund their livelihoods, but it’s also critical for the firm taking on the new advisor, and even recruiters who may be paid commission based on the assets brought over.
The best way to minimize revenue disruption during an advisor transition is to adhere to the points made earlier: invest in technology that streamlines and modernizes the entire process, put a focus on making the client experience as simple and error-free as possible, and create a plan well beforehand that guides everyone’s roles and responsibilities during a transition.
Get the Ultimate Guide to Advisor Transitions
Almost three-fourths of advisors are concerned about adopting technology offered by their new firm, but when you have the right partner and solutions by your side, digital transformation can be embraced and not feared.
Download our ultimate guide to Advisor Transitions here to make sure you’re prepared.