There is a ‘generational divide’ between seasoned advisers and those new to the industry, according to a research report from Wealthtime.
Succession planning in an age of employees is the first of two reports being published by Wealthtime in partnership with Octo Members.
The adviser platform put together focus groups to get a read on the issues. It found firm owners see a clear generational divide between themselves and younger advisers, particularly around tech and social media.
There was some common ground as well, with all ages of advisers agreeing on the importance of retaining the human connection with clients.
Throughout the sessions, a recurring theme was how both generations can learn from each other.
See also: Quilter tops lang cat’s advised platform sales chart as industry outflows rise
The research also explored the topics of succession planning for advice firm owners and whether the current business model meets the needs of future advisers.
Other topics covered in the report include support for preparing the next cohort of business owners, vertical integration, cultural differences between generations and the implications for future service expectations.
See also: FCA lays out plans for traffic light ratings of DC pensions
The next report will centre on viewpoints from industry newcomers on how they see the service they deliver evolving and what they want from their careers.
Keith Furniss, Wealthtime’s business development director, said: “A large part of the value of advice is in the relationship between client and adviser. But using technology alongside the human relationship can improve the client and adviser experience and the effectiveness of advice as well as keeping costs down.
“Tapping into the knowledge and skills of younger advisers can pay dividends for firms, especially when it comes to understanding the needs of future generations of clients,” he added. “Consolidators are now reviewing the age profile of advisers when calculating firm valuations, so there’s a clear view that young advisers are crucial to the ongoing success of firms.”
The report can be accessed via the Wealthtime website.
