The advisor transition process can be tricky. Adding a new advisor to your firm has enough steps to make even the most experienced manager dizzy. Key industry data show that more than 4,200 experienced advisors — those with more than three years of service — changed firms in the first half of 2022 alone. The process is daunting to members of your firm, the new advisor, and — especially — clients. But there is a surefire method to the madness.
The team at Skience are advisor transition experts. We have it down to … you guessed it … a science.
To help your firm and your advisors through the stress of this major move, we present our top 5 successful transition strategies:
1. Create a plan
Like any business strategy, you need a transition project plan. If you don’t know where you’re going, it can be a bumpy road. The first step: instill confidence in your new advisor and their clients. Set expectations for all parties, outline responsibilities, and lay out timelines. Map out your path at the very beginning to avoid surprises down the road.
No two advisor transitions will be exactly the same, but you can likely use the same blueprint. Just be sure to communicate any necessary changes as they arise.
2. Be a guide
Your new advisor is going to be looking to you for leadership. Add in a little hospitality too. They need your guidance to make things easy. For example, create communication templates for the advisor to use when contacting clients.
Your clients will need the same guidance. Building workflows and guiding clients through the transition process will strengthen your relationships.
3. Lean on tech
Moving client assets is time-consuming and complicated. Let tech make it easy for everyone. Implementing technology into every step of the process is going to help ease the burden.
A remote-friendly, end-to-end onboarding solution like Skience offers guided workflows for a consistent user experience. Smooth processes across custodians and clearing firms will facilitate a quicker, more accurate book transfer.
4. Keep it digital
Completing paperwork manually takes time away from running your business and leaves room for errors. Even the seemingly small inconvenience of having to re-submit forms can send clients to a different firm. Go digital and limit disruptions.
Even though the financial services industry has made significant advances in digital processes, there are still times actual paperwork is required. But the pandemic forced many interactions to go digital. Your advisors (and their clients) will thank you.
5. Stay humble
Now for a moment of Zen: close your eyes, take a deep breath, and accept that perfection is not always possible.
The most important variable during an advisor’s transition is mindset. Disruption doesn’t have to mean dismay. If you start with a well-defined plan, you’re already on the path to preventing unwelcome detours. Leave time to tie up loose ends after the transition is complete.
Even if your advisor transition process isn’t perfect, you can minimize disruptions for your firm and for your clients. Now, it’s time to shift into high gear!
Let Skience help
Skience Advisor Transitions coupled with our award-winning client onboarding and new account opening solution empowers firms to confidently bring in more advisors and onboard their clients faster.
Request a demo to see this scalable, fully digital experience for yourself.