Hire younger advisers to get younger clients, paper suggests

Macquarie’s second bi-annual Accounting and Financial Services Benchmarking Report found that more than 55 per cent of high performing firms are hiring younger advisers and encouraging them to engage their own networks in order to access a younger client base.

Macquarie Wealth Management division director Sherise Mercer said younger advisers have experiences and insights that can be of great value to firms as they look to engage the next generation of clients.

“They have a good understanding of what will resonate with a younger client base and recognise that these clients are not necessarily interested in the same things as their parents,” Ms Mercer said.

“They are at a different life-stage and have different financial objectives.”

Ms Mercer also said advice firms understand the need to reach out to a younger client base in order to underpin long-term sustainability.

“Almost 70 per cent of accounting and financial services firms are looking to engage clients under the age of 44, however the research has shown that high performing firms are more likely to employ a range of methods to achieve this,” she said.

“More than 80 per cent of high performing firms are engaging the adult children of their current clients as a way to access a new and younger generation of clients, compared to 67 per cent of all firms.”

Further, Ms Mercer noted that firms will be required to create a service package tailored specifically for younger clients who are in the wealth accumulation stage of their life.

However, only 35 per cent of firms surveyed have implemented this type of tailored service package, she said.

In addition, the report added that the importance of embracing technology to underpin the client experience is particularly relevant with a younger generation of clients.

“As the next generation of clients are exposed to sophisticated offerings in other consumer-based industries, they expect a similar experience from their accounting and financial services providers, one that is seamless, personalised and rich in information,” Ms Mercer said.

“The report has shown that high performing firms are more likely to introduce new systems and platforms over the next 12 months that give the client accessibility and insight. These include dedicated client portals, mobile apps and data aggregation dashboards.” 

The report is based on a survey of 396 accounting and financial advice firms, conducted in December 2017 by Macquarie’s banking and financial services group.

Adrian Flores

Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.

You can contact him on [email protected].