Ways to Capitalize on Financial Planning Industry Growth

The financial planning industry has seen many recent trends affecting its growth, from the increased use of AI and robo-advisors to the rising value of assets managed. 

Understanding current industry trends in the financial planning industry is crucial for job stability, career opportunities, and service enhancement. Tools like Asset-Map can assist in improving your financial advisory services and adapting to these changes.

In this article, we will discuss the growth of the financial planning industry and how to take advantage of it as a financial advisor. We’ll share top tips and opportunities to leverage this industry growth to take your advisory practice to a whole new level. 

The Booming Growth of the Financial Planning Industry

According to the Bureau of Labor Statistics, the job outlook for personal financial advisors from 2022-2032 is 13%, much higher than the national average for all occupations (3%). This growth may be driven by demographic shifts, rapid technological advancements, and increasing consumer financial awareness. 

Among other trends, the number of workers approaching retirement age is rising. Financial advisors are seeing an increase in clients looking for retirement planning services. According to a report by Prudential Financial, only 1 in 5 American workers nearing retirement is financially prepared. Many of these workers are partnering with financial planners to help them create a plan for how to handle their retirement. 

The industry's growth is bringing new opportunities for financial advisors in several ways. From tech advancements and utilizing new tools to taking on more clients and expanding their practice offerings, financial planning professionals are seeing changes.

Opportunities Arising from Industry Growth

Financial advisors should be aware of opportunities arising from this industry's growth. These opportunities include job stability and career advancement, expanding one’s client base, and enhancing service offerings. 

Job Stability and Career Advancement

As a financial advisor, the industry's growth directly contributes to your job security. When more people are looking for financial advisory services, the better security you have in your career. The supply and demand of financial advisory services play a role in your ability to explore new opportunities within the industry and progress in your career. 

According to Kaplan Financial’s 2024 Survey of Trends research, 89.6% of financial advisors are employed by a financial services or advisory firm. The increased interest in financial planning services impacts these firms' revenue and ability to create new positions within the organization. With potential career advancement opportunities increasing recently, financial professionals have the chance to level up in their roles. 

Expanding Client Base

Certified financial planners are almost always looking to expand their client base and assist more clients in reaching their financial goals. In today’s financial services industry, advisors have opportunities to develop their client base due to broader market reach and increased demand for financial advisory services. 

Demographic shifts such as millennials entering prime earning years and baby boomers nearing retirement have impacted the number of opportunities to take on new clients. These market segments are more likely to seek advisory services than in years past. Take advantage of the demand for financial advice.

Enhanced Service Offerings

Enhancing your service offerings can help meet clients' growing and evolving needs. By consistently updating your services to be more comprehensive, you can ensure clients are satisfied no matter the financial market.

Incorporating holistic financial planning services that focus on a client’s values and experiences with money can help you stand out as an advisor and attract a new type of client. Additionally, adding specializations in financial products like ESG or alternative investments can garner interest from new client segments. 

Challenges Accompanying Industry Growth

With growth comes growing pains. As the financial advisory industry continues to grow, advisors may encounter challenges such as increased competition, rapid technological advancements, and regulatory compliance.

Increased Competition

In a growing market, financial advisors need to differentiate themselves from their competition to stay ahead and continue growing their practice. With more financial planners seeking clients than ever before, advisors can strategically set themselves apart through personal branding, niche marketing, and leveraging social proof or testimonials. 

Personal Branding Strategies

Building a standout brand as a financial advisor requires creating a memorable brand identity through:

  1. Identifying your mission

  2. Establishing your values

  3. Choosing visual elements (colors, logo, typography)

  4. Developing a brand voice

  5. Following your brand guidelines

After you’ve crafted a strong brand identity, you will want to build an online presence through social media, content marketing, SEO, and networking with other professionals. 

Using customized features via Asset-Map’s Elite Package, you can reinforce brand awareness, improve brand recognition, and deepen client relationships with our custom branding.

Niche Marketing Tips

Marketing as a financial planner requires a strategic approach. Creating authoritative content is a great way to build credibility and share your expertise in investment strategies, estate planning, etc. Evaluate your target clients and utilize the most relevant channels to reach them.

For example, LinkedIn is an excellent place to market your services if you are a wealth management advisor who primarily works with high-net-worth individuals such as CEOs and other executives. If you want to target a middle-aged demographic interested in planning for retirement, you may try Facebook. 

Additionally, sending financial advisor email newsletters to your client base with monthly updates, special offers, investment options, market trends, and more can help remind people they could benefit from your services. 

Leveraging Testimonials

Testimonials from happy clients serve as strong social proof and credibility boosters. Gather this feedback from past or current clients to highlight on your website, social media profiles, and any physical marketing collateral. This gives prospective clients confidence that you are best equipped to help them reach their financial goals. 

Keeping Up with Technological Advances

These days, technology is advancing nearly at the speed of light. With Artificial Intelligence (AI) and blockchain transforming the financial planning industry, advisors must stay abreast of these changes to remain competitive. 

To address this challenge, financial advisors should continuously educate themselves on innovative technologies that could enhance their practice. Using financial visualization software like Asset-Map to kickstart client conversations and boost engagement can be a great place to start. 

Utilizing AI to automate tedious or repetitive tasks is another simple way to use technology to your advantage during this period of industry growth. Many financial planners are finding new ways to harness the power of AI to strengthen their service offerings. 

Regulatory Compliance 

Regulatory compliance is a perennial challenge among financial advisors. However, adhering to increasing regulatory demands amidst industry growth is even more complex. 

Staying compliant with regulations requires keeping up to date with the most recent regulatory changes and ensuring all of your practices meet these legal standards. The keys to regulatory compliance are continuous education and monitoring and investing in technologies to better manage compliance

Asset-Map is one such technology that can help support financial advisors in managing and monitoring compliance-related tasks. 

Key Strategies to Leverage Growth for Success

Industry growth is both exciting and nerve-wracking for professionals. Navigating emerging trends offers opportunities and challenges for financial planners. 

Some key strategies for CFPs and other financial advisors include:

  • Continuous education. Continuous education is especially important when an industry is seeing tremendous growth. Read industry news, attend webinars, and speak with other professionals to elevate your knowledge.

  • Adopt advanced tools. Adopting tools like Asset-Map can help you better serve clients and create positive experiences that set your name apart from the competition. 

  • Technology integration. Integrate technology wherever you can to streamline processes, enhance client engagement, and create efficient planning sessions. Use data analytics, machine learning, and AI to analyze client behavior. 

  • Client relationship management. Focus on fostering strong client relationships during times of growth to ensure your clients feel supported. Engage in conversations that go deeper than surface-level planning to learn how your clients' personal lives affect their habits. 

  • Networking. Network with other industry professionals by attending conferences, contacting people in your community, or connecting on LinkedIn. These connections can offer valuable insights and opportunities to further your career. 

Embrace Industry Growth with Asset-Map

With the financial planning industry’s growth, advisors are given many opportunities to enhance their services and expand their client bases. However, they must be proactive in facing the challenges of such growth. 

Stay competitive in a growing industry using Asset-Map’s advanced visualization features for financial planning. Enhance your conversations with clients and build trust using Asset-Map’s many collaboration tools. Explore our website or schedule a demo to see how Asset-Map can aid your adaptation and growth in the financial planning industry. 

TJ Hill