Despite prevailing concerns about the economy, advisors are confident in their businesses - and their roles are changing, according to a recent poll by SEI. 

“The changing role of the advisor may be best reflected in how advisors view themselves,” the firm said.

When asked what term best describes their business approach, just 8 per cent of respondents said they are an investment advisor, while 39 per cent described themselves as a wealth manager and 37 per cent described themselves as a financial planner.

“Advisors’ views of themselves and their roles have steadily evolved as the needs and expectations of their clients have changed,” Jerry Lezynski, managing director, marketing and communications, SEI Advisor Network, told Family Wealth Report.   

He said: “It seems very few clients want a straight investment advisor anymore. They want a partner who can provide value across the entire wealth spectrum from insurance and estate planning, to retirement planning and cash flow options to concierge services and everything in between. And if they’re not directly providing all those services, they are orchestrating the partners and resources to meet their clients’ needs. The most successful advisors recognize the game has changed and they’re doing what it takes to remain competitive.”  

Adding to a number of related studies in recent months, the poll also showed that advisors are using mobile technologies to foster client relationships, with 67 per cent of respondents saying they are currently using tablets or mobile devices to enhance client service. Only 3 per cent said they do not use social media.

The survey was conducted by SEI at its National Strategic Advisor Conference, which involved over 150 financial advisors. Of these, half have been in the business for more than 20 years and an equal percentage manage over $150 million in assets, SEI said.

Positivity

An overwhelming 91 per cent of the respondents think their firms’ 2013 revenues will be better than 2012, although responses were varied when asked their views on the direction of the economy as a whole.

Specifically, 41 per cent of advisors polled predicted “slow and steady growth ahead,” while 40 per cent of respondents said “we’re headed for a near-term correction.” A total of 13 per cent believe “it’s only a matter of time until our next recession.”  

Perhaps unsurprisingly, concerns dating back to 2008 have changed the advisor-client dynamic, as indicated by the fact that 72 per cent of those polled said their clients have become more demanding in the wake of the financial crisis.

“It may seem counterintuitive, but I’m not surprised that advisors are confident in their businesses despite prevailing concerns on the economy,” said Steve Onofrio, senior vice president and head of sales, SEI Advisor Network.  

“The reality is that the financial crisis and the choppy economy that followed forced a lot of advisors to put new processes and practices in place to meet the growing demands of their clients, making their businesses stronger in the process. We’ve worked with many advisors in recent years to do just that and I think the renewed confidence is a reflection of the ongoing evolution of the industry.”