Growth
In terms of US firms embracing technology, Hopkins said there was a much bigger focus in the US on actively trying to grow the client base with more firms employing marketing teams to nurture leads from existing clients, professional referrals and to drive inbound leads.
Skaff also discussed how US advice and wealth management firms were “wrestling” with growth.
He said: “While some channels are growing faster than others, we observe organic growth is universally the most difficult to achieve (vs market or acquired/inorganic growth).
“The good news is that the industry at large has evolved from a sales business to a client-centric advice business, where most arrangements are on a fee-basis. The challenge for some now is that the fee model is no longer a differentiator for growth.
“For differentiation to lead to growth, prospects need to believe your firm has experience working with clients like them. Of course, they also need to understand your value proposition and trust you can capably and credibly deliver on it.
“Some market entrants have tried to commoditise advice with advice fees at a fraction of the level of traditional financial advisers. This may make prospect engagement more difficult for incumbent advice firms.”
Proactivity
Hopkins believed we would see a greater focus on marketing from financial advice firms in the UK as seen in the US market.
She said: “There is a huge need for financial planning advice in the UK and a massive opportunity for financial advice firms to work with more clients.
“This requires a proactive approach to marketing and outreach. Some firms in the UK are already seeing strong business results from proactive marketing. I expect to see more firms in the UK to focus on business growth in the coming years.”
McKenna thought that fundamentally the behaviours of US and UK advisers were similar, however he felt there was a difference in attitude between the two.
He explained: “The difference between the US and the UK is the ‘let's do it attitude’. You put forward an idea in the UK, and everyone goes, I don't know. The sucking of teeth. People in the US are absolutely proud to be financial advisers. They are proud to be financial planners. It is one of the most sought after occupations for university graduates.
“If there is one thing that we could learn, it's to be prouder of what we would do in the industry and quite how much value it adds. Now, I'm not saying people in our industry aren't proud, but I see both sides and financial planning is a much sought after occupation in the US.
