Small Independent Broker-Dealers Are Facing Growth Challenges

Thursday, May 03, 2012 09:54
edit
Small Independent Broker-Dealers Are Facing Growth Challenges

Tags: Advisor businesses | independent broker-dealers

Giving advisors what they want in the short term seems to be working against independent broker-dealers (IBDs). IBDs seem to be trying to milk more profit from their existing models when they should be working more closely with advisors to help build their businesses.

This Website Is For Financial Professionals Only


 
Trying to be all things to all independent advisors presents a scalability problem. Helping advisors also may meet with some resistance from those who are stuck doing things the way they’ve always done them.
 
The industry is experiencing a generational divide with the heaviest components represented by industry veterans. Not enough new advisors are coming into the industry to inject new blood into advisor businesses. Yet veterans who are reluctant to change risk seeing their businesses fall off as those utilizing new ways of approaching the marketplace gain in client acquisition and service.
 
This means that larger firms with greater capacity for scale will outperform smaller ones along with their ability to serve a broader range of advisors who are better aligning their practices with investor demands.

Comments (0)

Write comment

You must be logged in to post a comment. Please register if you do not have an account yet.

busy