Future Financial Planning Megatrends (1 of 5)

Future Financial Planning Megatrends No. 1: The Big Shift

Financial PlanningThe financial planning industry is changing at a furious pace. As a financial planner already swamped with the daily complexities of running your practice and serving your clients, it can be difficult to keep up with all this rapid-fire change. However, the last thing you want to do is be stuck treading the status quo waters and playing a never-going-to-get-ahead game of reactionary catchup. To maintain an elite position within the industry and provide your clients with the highest level of cutting-edge financial planning advice, you need to position yourself to take advantage of the trends and innovations looming on the near-future horizon.

As discussed in this earlier, introductory Summit Brokerage blog entitled “Five Key Financial Planning Megatrends”,

Roubini ThoughtLab recently published a report entitled “Wealth and Asset Management 2021: Preparing for Transformative Change.” The report presented five key megatrends that are predicted to reshape the financial planning industry and global wealth profession over the next five years. The first of the five megatrends, “The Big Shift”, will be discussed in this instant blog and the remaining four megatrends will be discussed in future Summit Brokerage blogs.


The Big Shift

“By 2021, the convergence of technological, economic, and demographic trends will transform the wealth industry, unlocking immense global wealth across a diverse universe of investors.”[1] Given the fast-changing marketplace, it is critical that investment providers fully understand their customers’ priorities and behaviors.[2]


The following are key takeaways from the “The Big Shift” portion of Roubini ThoughtLab’s “Wealth and Asset Management 2021: Preparing for Transformative Change” report:


Technological change:

  • According to surveyed investment providers, three of the top five external forces of change in the industry relate to technology: new technology (including mobile, analytics, and social media); a greater range of competitors, including financial technology companies; and cybersecurity threats.[3]


Economic and demographic change:

  • Regarding the future trajectory of wealth, Roubini ThoughtLab economists “forecast massive wealth creation over the next five years, with household assets rising $89 trillion – from $207 trillion to $296 trillion – in 25 top world markets (representing about 60% of world GDP). The rise in household assets in these markets alone will pump about $50 trillion into the wealth industry.”[4]
  • Economist Dr. Roubini also predicts that “in emerging markets, populations are going from low per-capita income to medium per-capita income – and creating a middle class that will save more.”[5] The biggest gains are expected to come from the emerging markets of China, Mexico, and Poland.
  • Roubini also believes the aging of populations, especially in mature markets, will boost savings.[6]
  • In addition to emerging markets, the demographics of wealth are changing as millennials, Gen Xers, and women are all predicted to see their wealth rise.


Evolving customer expectations:

  • As a result of these changing wealth demographics, financial planners and investment providers who want to keep up with the changes must increase their knowledge of this increasingly heterogeneous set of customers across expanding new markets.[7]
  • These technological, economic, and demographic shifts coupled with greater market awareness, means that customers are going to expect even more from their financial planners and investment providers.
  • Customers and investors will be demanding that their providers have even greater professionalism and that they act with the “highest ethical standards, possess deep investment knowledge, and of course, have the proper certification.”[8]


Should wealth firms be optimistic about the future?

  • According the Roubini report, the answer to this question is: generally, yes as “despite the challenges ahead [such as economic uncertainty and tax and regulatory complexity], surveyed providers are sanguine about the future” and “most feel that these market shifts are already helping their businesses to attract, retain, and satisfy customers.”[9]
  • But keep in mind that it is not possible for everyone to be a winner in the future of the financial planning industry, especially as customer expectations are changing so rapidly. According to the Roubini survey, half of survey respondents said they would change from their current providers if they fail to meet their heightened expectations.

In sum, the future of the financial planning industry will be rife with change. Those financial planners who want to be successful in the future must not only be cognizant of these future industry changes but also take action to adjust accordingly, changing and innovating themselves and their practices to a new world of technological, economic, and demographic changes.

At Summit Brokerage Services, we are committed to helping our independent financial advisors stay abreast of all the changes in the constantly evolving financial planning and wealth management industry. For more information on Summit Brokerage Services and our independent financial advisors, visit www.joinsummit.com or contact us at (800) 354-5528. We’ve been voted the number one boutique independent broker dealer firm in the country—let us show you why!


About Summit Brokerage Services, Inc.

Summit Brokerage Services is part of Cetera Financial Group. Summit Brokerage provides a broad range of securities brokerage and investment services to primarily individual investors. Summit Brokerage also sells insurance products, predominantly fixed and variable annuities and life insurance through its subsidiary, SBS Insurance Agency of Florida. Summit Brokerage also provides asset management services through its investment advisor, Summit Financial Group, Inc.


About Cetera Financial Group

Cetera Financial Group® (“Cetera”) is a leading network of independent retail broker-dealers empowering the delivery of objective financial planning advice to individuals, families and company retirement plans across the country through trusted financial advisors and financial institutions.  Cetera is the second-largest independent financial advisor network in the nation by number of advisors, as well as a leading provider of retail services to the investment programs of banks and credit unions.

Through its multiple distinct firms, Cetera offers independent and institutions-based advisors the benefits of a large, established broker-dealer and registered investment adviser, while serving advisors and institutions in a way that is customized to their needs and aspirations.  Advisor support resources offered through Cetera include award-winning wealth management and financial planning and advisory platforms, comprehensive broker-dealer and registered investment adviser services, practice management support and innovative technology.  For more information, visit www.ceterafinancialgroup.com.

*”Cetera Financial Group” refers to the network of retail independent broker-dealers encompassing, among others, Cetera Advisors, Cetera Advisor Networks, Cetera Financial Institutions, Cetera Financial Specialists, First Allied Securities, Girard Securities, The Legend Group and Summit Brokerage Services.


[1] Roubini ThoughLab “Wealth and Asset Management 2021: Preparing for Transformative Change” report (See p.4)

[2] http://www.econsultsolutions.com/wealth2021-downloads/

[3] Roubini ThoughLab “Wealth and Asset Management 2021: Preparing for Transformative Change” report (See p.6)

[4] Roubini ThoughLab “Wealth and Asset Management 2021: Preparing for Transformative Change” report (See p.6)

[5] Roubini ThoughLab “Wealth and Asset Management 2021: Preparing for Transformative Change” report (See p.6)

[6] Roubini ThoughLab “Wealth and Asset Management 2021: Preparing for Transformative Change” report (See p.6)

[7] Roubini ThoughLab “Wealth and Asset Management 2021: Preparing for Transformative Change” report (See p.7)

[8] Roubini ThoughLab “Wealth and Asset Management 2021: Preparing for Transformative Change” report (See p.9)

[9] Roubini ThoughLab “Wealth and Asset Management 2021: Preparing for Transformative Change” report (See p.9)

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