An alumnus of Moss Adams and Fusion Advisor Network, Peter Palaveev, has made seven predictions for the future of the independent advisory industry.
Here’s a quick rundown of the seven and a comment on what they might mean to you.
This Website Is For Financial Professionals Only
- The industry will not evolve into the few who dominate; rather, many firms will prosper and a firm’s size will be appropriate to its market.
- Technology will streamline and commoditize more routine tasks—like backoffice—and even basic advice. Complexity will be where the value is.
- Large firms are on the demise.
- The most enduring and powerful consolidators are the organic ones
- The next generation is not a succession issue—it is a leverage issue
- Advisor ownership will always be a trump card
- Culture eats strategy for breakfast
Palaveev says the advisory industry will evolve in similar fashion to the accounting industry in the way it matures.
Firm size and competition will reflect client size. Midsize firms will service private and small businesses.
Large regional firms will service large privately owned companies. Solo practices will service tax and micro-businesses.
Consolidation in the industry will continue at a steady pace but the days of the roll-up are over.
Technological advances are forcing the commoditization of basic, mass-market level services.
This frees more time for advisors to differentiate themselves through a niche and to build deeper client relationships.
The headaches of running an office will be taken over by technology, allowing you to do what you really love and lead a much more fulfilling professional life.