What the next decade means for financial advisors

The financial industry is changing rapidly in many ways. But what will happen in the future? Although uncertain, some recent trends have quickly gained traction in the market and are likely to play a role in the next ten years. Financial advisers now need to prepare for them.

Key points

  • For decades, the practice of financial advisors has been more or less the same-check once or twice a year, focusing on accumulation.
  • However, in the next few years, the trend will change, and it is expected to reshape the way successful consultants need to think in order to stay ahead.
  • The technological trend of robotic consulting, an aging customer base seeking income rather than risk and accumulation, and regulatory changes to fiduciary responsibilities are all future considerations that consultants must pay attention to.

Technology trends

Few digital revolutions can have such an impact as the financial industry. It is now easier than ever for investors to access their accounts and view their portfolio, not to mention the performance of the market itself. In the future, seamless digital portals may be as common as today’s mobile phones, allowing customers to log in and manage their funds, communicate with consultants and planners and conduct transactions around the clock.

Robo-advisors may also be employed by each company in one capacity or another. After 10 years, they may follow very complex strategies that use a certain degree of judgment on buying and selling decisions. Access to these services may become completely mobile and cloud-based, and these innovations may combine to greatly reduce the price of public financial planning and asset management.

In fact, there is speculation that once computer technology reaches the point where automated programs can be used to help customers determine their risk tolerance and time frame and formulate investment strategies, financial planning may be provided for free.

Trust Trend

The Federal Court abolished the Department of Labor’s fiduciary rule in June 2018, which requires all personnel involved in retirement plans, product sales, and consulting to maintain fiduciary status. But it may still leave a legacy. Many financial services companies have begun to change business practices to reduce conflicts of interest (or conflicts of interest).

The U.S. Securities and Exchange Commission (SEC) is also developing a new set of regulations that require brokers to put the economic interests of their clients above their own interests. Many futurists in the industry believe that there will be more transparent pricing and disclosure policies in the future, as well as a consultant remuneration model based on regular appointments rather than fees or commissions.

Generation gap

It is risky for consultants who ignore potential Gen X and Millennial clients to do so. In the next few years, baby boomers will pass on to their offspring more than $18 trillion. Planners need to be aware of the children of older clients in order to retain them after their parents leave. This means shifting from risk and growth to stabilizing, protecting, and generating retirement income from portfolio assets.


The increasing globalization of the world economy will bring huge new marketing opportunities for consultants, who can reach customers that they could not grasp before. In the next few years, the number of people with mobile phones will increase to 5 billion, twice the current number. It is estimated that by 2021, the amount of global private wealth will also increase from the current more than 220 trillion U.S. dollars to 400 trillion U.S. dollars, and North America alone will have 73 trillion U.S. dollars.Women will soon control about 60% of U.S. liquid investable assets

Education debt

Repaying student loans is a huge burden for many graduates and parents. Now the United States has more education loan debt than credit card debt. More and more clients will seek advice on how to deal with this issue, and legislative reforms may be required to deal with this issue nationwide.

Retirement plan

If retirement planning now seems difficult, it will only become more difficult for many young workers who may live much longer than their parents. Modern medical advances in areas such as cancer research are pushing the average life expectancy to the 90s, and at some point it will exceed the 100-year mark. In the next few years, the demand for new products such as longevity annuities is likely to surge.

Other vehicles may appear in the insurance market and can help savers maintain their income for the rest of their lives. Accelerated benefit add-ons that allow life insurance policyholders to receive part of the death benefit to cover long-term medical care and other expenses may also become part of every regular and permanent insurance policy.

Bottom line

The financial industry is in the throes of digital and market revolutions, which may provide the public with low-cost financial planning. Seamless, cloud-based technology will provide all-weather mobility for traders and young clients who have grown up in the Internet age. Automated services and transparent pricing are about to emerge, while stricter rules and regulations will be set for consultants who provide services for retirement plans and accounts.


READ ALSO:   Scholarships and grants for future financial advisers
Share your love