The coronavirus crisis has dramatically changed wealth management. Financial advisors across the nation have packed up their offices and headed home. They’re conducting virtual meetings with clients, while major brokerage houses are recruiting online. And there is no sign of this changing any time soon. Some advisors are even saying they’ll look to replace in-person meetings in the future. It’s not just advisors, clients are becoming more and more comfortable with video meetings as well.
Advisors across the map are having to readvise their firms’ budgets, and some are seeing a decline around 30 percent in top-line revenue. According to a recent survey from Arizent, about three-out-of-four wealth managers have seen their revenue dip.
Nonetheless, the workload hasn’t dropped off at all. Advisors need their entire team to help clients through these challenging times. In fact, it’s how advisors handle the COVID-19 crisis and economic downturn that will help them win new business after the pandemic passes.
Now might be the best time to start preparing for the recovery, no matter when it comes. That means reassessing future technological needs, rehauling websites, and even bolstering advertising budgets.
The major players are also looking at the future and the well-being of their employees. Earlier this week, Royal Bank of Canada announced they will not be making layoffs, and will be pivoting to virtual recruiting. Wells Fargo, Morgan Stanley, Bank of America, Goldman Sachs, Deutsche Bank, and HSBC have also announced that they would avoid layoffs.
That doesn’t mean everything is moving smoothly. Wealth management conferences around the globe have been canceled or delayed, as well as exams such as the CFP and CFA. Growth, networking, even the ability to get continuing education created, it has all slowed to almost a standstill.
Hopefully, CE credits will get taken care of by online conferences or courses. The coronavirus crisis is forcing the wealth management world to get creative and adjust.
The changes probably won’t end here. Companies like Edward Jones, known for their door-to-door approach for client acquisition, have asked their entire 18,000 advisor workforce to stop face-to-face meetings.
Everyone is moving to video conferencing. Communication is important when times are tough and blood begins to boil. Fear leads to panic and panic leads to poor decisions and it’s the duty of advisors to help their clients make good decisions in challenging times. Being an advisor in crisis time is time is a 24/7 job.
The entire wealth management space is going virtual. Firms are holding webinars in lieu of monthly gatherings. Recruiters are now having virtual office visits for prospective hires. But, in good news, that means firms--including Wells Fargo--are still hiring, even if it’s a slower rate than before.
