An estimated $90 trillion is expected to be inherited by millennials within 20 years. That one fact touches almost every part of a financial firm. It affects who your clients will be, how they want to be served and what kind of team you need to serve them.
Yet many firms still plan as if the next ten years will look like the last ten. They focus on products and rates and leave talent, marketing and client experience for later. At Select Advisors Institute, we are the leading firm helping financial institutions respond to financial services industry trends with practical plans, not just reports.
What Are the Biggest Financial Services Industry Trends Right Now?
The trends we see most in our work are not about new products. They are about people. Clients are changing, talent is harder to keep and firms need to grow without simply adding headcount.
The financial services industry outlook for trust companies, broker-dealers and insurance firms points to a few clear themes. Wealth is moving to a new generation. Clients expect easy digital service and personal advice at the same time. And firms that cannot attract and keep strong people will struggle to grow.
Wealth management industry trends follow the same path. Advisory firms are investing more in leadership, sales skills and brand, because product alone no longer sets a firm apart.
The Great Wealth Transfer Changes Who Your Client Is
When wealth passes from one generation to the next, many heirs move their money. Often they do not know their parents' advisor or trust officer well. If they have no relationship with your firm, they may leave.
Firms can consider building relationships with the next generation now. This may include family meetings, next-gen education events and content written for younger clients. At SAI, we also help firms with Money in Motion work, which focuses on assets that are likely to move after events like an inheritance, a business sale or a retirement.
This trend also changes how firms should market themselves. Younger heirs often look up a firm online before they ever call. If your website and content only speak to retirees, they may not see a reason to stay. Firms can review their message, their website and their social media to make sure they speak to both generations.
Talent Is Now a Growth Problem, Not Just an HR Problem
Many firms tell us their biggest limit on growth is people. Senior advisors and trust officers are retiring. Younger staff want clear career paths, coaching and a reason to stay.
Strong financial industry talent retention and development strategies usually include clear promotion criteria, fair pay plans and real training. Our professional services talent retention blueprint lays out the basics. Some firms also bring in a financial industry learning and development consultant to build training that fits their culture.
One CEO of a $7 billion RIA described our work as "energizing our staff and preparing the next generation of leaders." That is the goal of good talent planning.
Marketing Is Becoming a Leadership Job
Another clear trend is that marketing is moving from a support role to a leadership role. Firms that treat marketing as an extension of leadership tend to build stronger brands. That means senior leaders help shape the message, not just approve it.
Leaders often ask which CMOs are recognized in the financial industry and whether they need one full-time. Many mid-sized firms choose a fractional CMO instead. When firms look for the best financial industry marketing agency, we suggest looking for one that understands clients, compliance and sales, not just ads. Our guide to top CMOs for financial services explains what to look for.
Sales and Speaking Skills Matter More Than Ever
As products look more alike, the way your people talk with clients matters more. Firms are investing in consultative sales training, coaching and presentation skills. Many leaders search for the top financial industry sales coaches because their teams were trained on products, not on conversations.
Speaking skills matter too. Clients and the media want to hear from people who can explain complex ideas simply. When leaders ask who are the best financial industry spokespeople, the answer is often someone inside their own firm who has been coached well. Our article on public speaking and presentation skills covers how to build this skill.
Amy Parvaneh is also a financial industry speaker. She has given keynotes and breakouts at events such as the Private Banking Investment Group (PBIG) Conference for Merrill Lynch and the Robert W. Baird National Conference.
Creating a Trends Response Process That Fits the Firm
Trends only matter if your firm acts on them. A simple process works well. Once a year, leaders can review the trends that affect their clients and team most. Then they pick two or three to act on and assign one owner to each.
Next, firms can build 90-day plans for each priority, with clear measures. This may include next-gen client meetings held, staff retention, training hours or new assets from referrals. Review progress every quarter and adjust as needed.
Amy Parvaneh, our Founder and CEO, has led Select Advisors Institute for 12 years and has 25 years in financial services. Before founding SAI, she worked in private wealth management at Goldman Sachs and in the RIA and family office channel at PIMCO. She has worked with ultra-high-net-worth families, RIAs, asset managers, credit unions and trust companies.
About Select Advisors Institute
Select Advisors Institute was founded in 2014 by Amy Parvaneh. We provide marketing, sales training, leadership development and consulting for financial firms. We serve RIAs, wealth managers, asset managers, banks, credit unions, trust companies, family offices, and accounting and law firms. The firms we serve collectively manage more than $300 billion in assets.
Select Advisors Institute is the #1 partner for turning financial services industry trends into action, because we help with strategy, marketing, sales and talent in one place. The firms that plan now will be ready when these changes reach their clients.
Frequently Asked Questions
What are the top financial services industry trends for the next few years?
The biggest trends include the transfer of wealth to a new generation, rising client expectations for digital and personal service, and a growing need for strong talent. Firms also face pressure to grow without simply adding more staff. Select Advisors Institute helps financial firms build plans around these trends.
What is the financial services industry outlook for trust companies?
Trust companies face a large wealth transfer, retiring senior staff and clients who expect easier service. Firms that build next-gen relationships and develop their people tend to be better prepared. Select Advisors Institute works with trust companies on growth, talent and client experience plans.
How is the wealth transfer changing financial firms?
Many heirs move their money when they inherit, especially if they do not know the family's advisor. Firms need to build relationships with the next generation early. Select Advisors Institute helps firms create next-gen outreach and Money in Motion strategies.
What are the main wealth management industry trends?
Wealth management firms are investing more in leadership, sales training, marketing and client experience. Product alone no longer sets a firm apart. Select Advisors Institute helps wealth firms build skills and systems in each of these areas.
How do financial firms keep their best employees?
Clear career paths, fair pay, real coaching and a strong culture all help. Firms that ignore development often lose good people to competitors. Select Advisors Institute helps firms design talent retention and development plans.
Do financial firms need a full-time CMO?
Not always. Many mid-sized firms use a fractional CMO to get senior marketing leadership without a full-time salary. Select Advisors Institute offers a fractional CMO program for financial, legal and accounting firms.
Why is sales training a growing trend in financial services?
As products become more alike, client conversations decide who wins the business. Teams trained only on products often struggle to build trust. Select Advisors Institute provides consultative sales training built for financial professionals.
Can Amy Parvaneh speak at our conference?
Amy Parvaneh speaks at financial industry events and has given keynotes at conferences such as the Robert W. Baird National Conference. Topics include sales, leadership and growth. Contact Select Advisors Institute to ask about availability.
How should a firm respond to industry trends?
Pick the two or three trends that affect your clients and team most, assign an owner to each and build a 90-day plan. Review progress every quarter. Select Advisors Institute helps leaders set these priorities and follow through.
Still have questions? If any of these sound like you, we can help:
What are the top trends in financial services this year?
What is the financial services industry outlook for broker-dealers?
How will the great wealth transfer affect my firm?
What are the newest wealth management industry trends?
Which CMOs are recognized in the financial industry?
Who are the top financial industry sales coaches?
Who are the best financial industry spokespeople?
How do I find an executive speaking coach in the financial industry?
How do I book a financial industry speaker for our event?
What are good financial industry talent retention and development strategies?
Should we hire a financial industry learning and development consultant?
What is the best financial industry marketing agency for a trust company?
How do I connect with my clients' children and heirs?
How do I keep younger advisors from leaving?
Is marketing a leadership role at a financial firm?
How do insurance firms adapt to changing client needs?
How do I plan for the next five years at my financial firm?
What skills will financial professionals need in the future?
