Pershing urges wealth managers to adapt

Pershing Limited, a BNY Mellon company, has urged financial advisers in the UK to adjust their business propositions and critically analyse the core components of their business to maximise the opportunities presented by the evolving financial services landscape.

In a note issued following the firm’s annual UK advisory council, Mark Tibergien, CEO and managing director, Pershing Advisor Solutions LLC, highlighted what advisory firms should do to continue to grow profitability amid an environment of continued regulatory, technological and industry change.

He has encouraged advisers to focus on:

Pricing: Demonstrate the value of advice by providing clear, competitive charges.

Client base: Think long-term and multi-generational.

Product/service offering: Adapt your services to meet client and market demands, such as the new pension freedoms and the increased demand for digital solutions.

Human capital: Underinvesting to harvest profits can be detrimental to future success. Attracting new talent is vital to unlock new market opportunities; firms should develop effective recruitment and retention strategies, for example offering flexible working arrangements and professional development through coaching programmes.

Ileana Sodani, chief relationship officer, said: “New opportunities for growth are continuously emerging in the wealth management sector and firms need to plan carefully to ensure that they are making the most of this. Advisers need to anticipate their clients’ demands and adapt accordingly to ensure their service offering meets expectations at all times. This is more important than ever as new business models enter the market and competition increases. Delivering outstanding service will retain clients, encourage other family members to use your services, and generate referrals to support new business relationships. Client retention and attracting new clients need to be balanced carefully to ensure profitability and long term success.”