How Financial Advisors Can Seize Opportunities in the “Money in Motion” Era

A staggering 75% of advisory clients left or considered leaving their advisors in 2023, according to a recent YCharts survey. This alarming trend highlights the shift in the financial advisory landscape, with clients increasingly seeking better communication, service, and guidance from their advisors. As clients become more discerning and willing to switch advisors, a substantial amount of money is now in motion. Advisors who can adapt to this environment and position themselves to attract and keep clients by delivering the exceptional service and value they demand have a unique opportunity to capture this moving money.

Key Findings from the YCharts Survey

The YCharts survey provided valuable insights into the preferences and expectations of advisory clients. Some notable findings include the following:

  • 80% of clients would like to hear from their advisor at least four times a year, while only 63% currently do.
  • Clients with more than $500,000 invested or over the age of 45 tend to want more communication and are more proactive about getting it.
  • Only 5% of respondents were completely satisfied with how their advisors connect with them.
  • Clients understand only an average of 64% of the content advisors share with them, down from 70% last year.

To seize the opportunities presented by the “money in motion” era and attract and keep clients, financial advisors must adopt a proactive and multi-faceted approach to growth through differentiation, communication, and service.

Developing a Compelling Narrative

Advisors must develop a compelling narrative that sets them apart from competitors and resonates with their target market. This differentiated story should answer the lingering question, “Why should I do business with you,” by highlighting the client problems you solve, your unique value proposition, experience, and solutions.

A well-crafted narrative should be authentic, memorable, and emotionally engaging, making it easier for potential clients to understand and connect with your brand. It should also be consistently woven throughout your marketing materials, website, and client interactions to reinforce your message and build trust.