Wealth Management

According to a Ficomm Partners survey, today's retirees are the last generation to rely heavily on referrals for choosing financial advisors. Over the next five to ten years, digital marketing will become increasingly crucial for attracting clients.

 

While 60% of those over 60 prefer referrals, only 17% of those under 44 feel the same. Instead, 57% of younger investors hired advisors based on digital marketing, compared to 20% of older respondents. 

 

This shift indicates that advisors must adopt a multi-tactic digital marketing strategy to stay competitive, as younger clients prefer researching and making purchases digitally. Additionally, the survey found that no single digital channel was superior; a mix of channels was necessary for effective marketing.


Finsum: Social media literacy is a must to staying in touch with this new generation of investors. 

 

Goldman Sachs exceeded profit and revenue estimates with $8.62 earnings per share and $12.73 billion in revenue, driven by strong fixed income results and reduced loan loss provisions. The bank’s Q2 profit surged 150% to $3.04 billion compared to the previous year. 

 

Fixed income revenue rose 17% to $3.18 billion, while provisions for credit losses fell significantly. The asset and wealth management division saw a 27% revenue increase, and platform solutions revenue rose 2%.

 

However, investment banking fees were slightly below expectations, unlike rivals JPMorgan and Citigroup. Shares of Goldman Sachs increased by more than 1% in midday trading.


Finsum: This is evidence of the good climate for fixed income markets during extreme economic stress. 

Advisors often hesitate to switch firms due to fears of client attrition and contractual issues, even when better opportunities exist. Clients, however, are generally supportive of changes when benefits are clearly communicated. 

 

The transition process is still cumbersome, involving new paperwork and logins, despite technological advances. Effective communication about the long-term advantages of the move can mitigate client concerns. 

 

Partnering with a firm experienced in advisor transitions can help streamline the process. Understanding and managing perceptions can lead to a smoother transition and higher client retention.


Finsum: The right affiliate can make this transition much smoother so consider this when making the jump. 

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