The Most Successful Advisers Are Tech Innovators

The most successful registered investment advisers (RIAs) and fee-based advisers have many traits in common, according to “Advisor Authority 2018: The Future of Advice,” a study commissioned by Nationwide Advisory Solutions—its fourth such study.

“The most successful RIAs and fee-based advisers, who earn more and manage more AUM [assets under management], are already a step ahead by putting clients first with a fiduciary standard and more holistic planning,” says Craig Hawley, head of Nationwide Advisory Services. “They further differentiate themselves by harnessing prevailing trends—from artificial intelligence [AI] to demographic shifts to industry consolidation—to create their own competitive advantage. To keep pace, all advisers must adapt or be left behind.”

Nationwide defines the most successful advisers as those earning $500,000 or more a year or having AUM of $250 million or more. The company found that a number of similar traits distinguish these advisers. Notably, they are tech innovators. They rate technology as the second most important factor for driving profitability over the next 12 months.

These advisers employ the competitive advantage of AI to transform every aspect of the customer experience, including offering a new universe of products. They align with their clients’ best interests, thereby deepening their relationships with them and attracting more assets. Successful advisers also define their ideal client and what their top concerns are in order to customize their practice to meet these needs, the study says.

Finally, they are marketing innovators. This year, successful advisers say increased use of mobile technology is their top solution to attract the next generation of investors (33%), followed by increased use of social media (30%).

Art by Alex Kiesling