Tomorrow’s financial advisors should prepare for a profession reshaped by new technologies and shifting consumer expectations.nirat/iStockPhoto / Getty Images
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As thousands of students across the country put on their graduation robes and caps, some may already be thinking ahead to a career in wealth management. But the profession they envision getting into is likely to be quite different in the coming years.
“The industry is changing constantly and, today, we’re seeing exponential changes,” says Tara Ennevor, financial advisor, portfolio manager and director at Vancouver-based RGF Integrated Wealth Management Ltd. “It’s more important than ever to be adaptable and agile.”
That means newer advisors should prepare for a profession reshaped by new regulations, shifting consumer expectations and technologies such as artificial intelligence (AI) and digital media, says Ms. Ennevor, who has more than 25 years of wealth management experience.
Tashia Batstone, president and chief executive officer at FP Canada, which oversees the certified financial planner designation in Canada, says as the industry moves toward holistic solutions, tomorrow’s advisors and financial planners will need a broader skill set.
“The role has shifted from primarily investment management to more comprehensive financial planning that includes estate planning, retirement planning and risk management,” she says. “There’s a heightened focus on enhancing the consumer experience and personalized services.”
The right technology can be a big help. For example, using AI to analyze financial models and build a financial plan would allow advisors to spend more time on client discovery and financial plan implementation – the two stages that bookend the financial planning process.
“There’s a future in which that middle part – working with the various assumptions, doing the scenario analysis and preparing the plan – will ultimately be done through a technology solution,” Ms. Batstone says. “As the financial planner, you’re still responsible for ensuring the technology works appropriately, checking the assumptions and that everything coming out of it is accurate.”
With this in mind, FP Canada recently introduced rules of professional responsibility related to the use of technology such as AI in financial planning, Ms. Batstone says. At the same time, the organization rolled out an educational module to help financial planners improve their skills in client discovery.
“We do think that AI is going to become critical … but that doesn’t take away the importance of those initial conversations, the initial building of those relationships and then ultimately helping clients achieve their financial goals by implementing the financial plan,” Ms. Batstone says. “So, assuming the middle part is automated, those bookends become even more important – that’s where the real value-add is going to be for financial planners.”
Multiple paths to the industry
Whether they’re mapping out their career path from high school or post-secondary studies, tomorrow’s advisors and financial planners should keep in mind there’s more than one way into the industry.
Consider Aravind Sithamparapillai, an associate at Ironwood Wealth Management Group Inc. in Fonthill, Ont. After earning a bachelor of science in biology and behavioural psychology and an MBA, Mr. Sithamparapillai spent a couple of years working for two of the big banks. From there, he moved to a marketing role for a pharmaceutical company before landing a job in sales with a medical device company.
“I worked in finance fresh out of my undergrad studies to learn the financial system because I’ve always had this passion for personal finance,” he says. “The problem for me was that the industry has historically been ‘eat what you kill’ – you come in and it’s all about trying to find clients – and I never wanted to be in that position. Which is why when I finally had all this other knowledge and experience and I had saved a bunch of money, then I felt like I could enter the industry differently.”
That was made possible by Ironwood’s succession plan, which set out to bring in associates who could learn and grow into the advisor role without the immediate pressure to land new clients. Since joining Ironwood in March 2020, Mr. Sithamparapillai has built an advisory practice that includes a niche clientele of midwives.
His advice to anyone considering a career in wealth management? Research all the organizations and roles to figure out the best fit.
“There’s been an evolution in the industry where we now have a lot of independent financial planners, advisors and dealers,” he says. “So, you’re no longer restricted to working for a bank and you don’t have to be just a tax or insurance guy or just an investment jockey.”
Mr. Sithamparapillai also encourages new graduates to learn as much as they can about money and personal finance – whether through an academic program or by reading. It’s also important to learn skills such as active listening, communication, marketing and sales, he says.
Why the industry is looking for critical thinkers
Maili Wong, senior wealth advisor and portfolio manager at Wellington-Altus Private Wealth Inc. in Vancouver, says new entrants to the wealth management industry used to be assessed based on factors such as school grades or their performance in a competitive sport.
Today, as clients seek holistic solutions to their complex financial situations – such as second or third marriages, extended families and successful businesses – wealth management firms are looking for critical thinkers who can come up with the best strategies.
Knowing how to work within a team has also become a must-have skill for advisors, Ms. Wong adds.
This advisory model is more successful when it’s supported and delivered by a team, she says, with different people specializing in investment analysis, financial planning, portfolio reviews, administration and compliance. “One advisor alone cannot successfully do all of that in this environment.”
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