BCG Blog - Advisors

In the race to keep up with AI advancements, it seems like financial advisors just got a power boost. In early June of 2024, the FINRA Investor Education Foundation reported new research suggesting consumer trust favored financial professionals more than AI in terms of financial information.

Over the years, we’ve weighed the pros and cons of various social media platforms on financial literacy. Sometimes, preference for social media runs along generational lines. Lately, two trends may have combined to create an important issue for financial advisors: a reduction in attention span and the rise in so called “Finfluencer” may mean clients are relying on TikTok for financial education.

Recent research released in June of 2024 by MFS Investment Management may reflect that the scope of risk is shifting. These concerns include administrative and regulatory changes as well as continuing concerns about retirement readiness of plan participants. These concerns about managing volatility and adjusting for potential litigation risks may have financial advisors considering their current offerings of investment monitoring.

A new report shows that a large percentage of employees are using AI at work, without their employer’s knowledge or approval. Unauthorized AI can create serious cybersecurity risks for those handling private financial information. Such use may also run afoul of the EBSA’s recommendations for retirement plan service providers.

A recent article highlighted on NASDAQ’s news page noted that demographic changes among retirees may create opportunities for more diversity among advisors. Yet, that report seems to not align with other, more recent studies. That may beg the question, what is the state of gender diversity in asset management and financial advising?

A recent opinion from the Supreme Court on a regulatory agency’s funding could resolve some questions over the future of regulation of the retirement planning industry. Yet, there may also be changes on the horizon through related legislation.

A new report from the Center for Retirement Research may be important for advisors who plan to pitch their fiduciary services to small firms. Released in March of 2024, the 2023 Small Business Retirement Survey assesses the beliefs of small business owners regarding retirement benefits and how those beliefs move their decisions to offer, or not, such benefits.

In recent years ESG investing has emerged as a popular choice for investors looking to align their portfolios with their values. One of the key questions advisors may hear from their clients is whether ESG funds perform as well as traditional investments and if they can be a valuable addition to a diversified investment portfolio. Here is a review of where the industry stands on this area.

The average professional worker is swamped by more than 120 emails per day. In this deluge of emails, a problem bobs along like a tiny rowboat: your marketing leads. If you feel like you need to level up your follow ups, here are a few new strategies we’ve seen from a variety of industries.

Has the agency tasked with enforcing ERISA performed on the prediction of increased enforcement action under in the Biden Administration or did it focus on new regulations instead? We compared the first year of the new administration to last year to find out.

The public is having a very heated conversation on aging and capacity, especially when it comes to holding political office. Some may even want a break from the coverage of older politicians and their foibles. But one arena that may need more discussion of longevity and aging is retirement planning.

One aspect of active listening that advisors may want to consider involves asking confirming questions. Yet, some business experts suggest avoiding the most common of those confirming questions: “Have I answered all of your questions today?” Here’s what advisors can do to think of how to adopt this phrase in their client communications.

Two recent studies released in January of 2024 point in opposite directions: one indicates that inflation may be slowing down quieting consumer concerns, others say inflation is still top of mind for most workers. What gives? It may be where investors live. For advisors struggling with determining how to manage inflation’s impact on their clients, digging into these studies may help.

Financial advisors may feel like they are finding themselves between a rock and a hard place lately and both rock and hard place may be the doing of the Department of Labor. If you thought the proposed fiduciary rule was the only problem popping up, beware the independent contractor definition changes.

Three major supreme court opinions may be coming soon that could have significant implications for financial advisors and they may not be the ones you’ve heard about. These cases may be more significant: they may reduce the ability of agency regulators to oversee, investigate, and fine financial advisors and institutions by changing a long-held rule deferring to federal agencies in their decisions.

If you are searching for answers to this knowledge gap, don’t look to advisors. Results from a study released by the Harris Poll in August 2023 showed that advisors are twice as likely (80% to 40%) to include annuities as asset protection and diversification tools over EFTs. What’s the holdup?

Among the many takeaways from the Binance charges and the Bankman-Fried trial how charisma can impact a company’s disregard for business basics, such as an accounting department in the Bankman-Fried case. Unlike cranberry sauce at Thanksgiving, you can never have too much consideration of compliance in the financial industry. Company culture can be a big player in how employees put compliance into effect.

As 2023 ends, it may be that luxury brands are showing a lapse in both profit as well as sway on consumers. For financial advisors who look to track luxury brands in their marketing and advertising approaches, this could be an important trend to track. And it isn’t all negative.

The IRS’s new details on how it will increase its hiring shows a potential for increased scrutiny and potential audits for 401(k) plans and investors with complex wealth basis.

For a generation named for its inability to be quantified it may come as a surprise that Generation X may go down in history for having the worst numbers, at least when it comes to retirement. Generation X, those now in their 40s and 50s, account for about one-fifth of the population, a significantly smaller cohort than other generations and yet their worries are weightier than others.

For many professionals, the end of the year means nailing down the details of key business plans, like your marketing and communications plans. That is why we’ve scheduled this series on how to construct and format your communications calendar to right when you may need it.

These days, artificial Intelligence is top of mind for almost any professional. Financial advisors are no exception. They have often had to justify how their work can’t be replaced by that of a robot. First, were robo-indexes. Then the algorithms. And now, artificial intelligence, specifically ChatGPT. But good news humans! AI makes for a terrible financial advisor. Here’s what you should know.

Communications plans can seem overwhelming but when they are done well, they help you measure and monitor important details, increasing prospect pools and warming up your leads. Here are a few things to think about when building a communications plan for your marketing efforts.

Financial advisors deal in confidence all day long. Whether it’s measuring the value at risk of an investment portfolio or helping a client assess their risk tolerance, confidence is a huge part of what advisors do. But when it comes to clients, you may be getting punked. New research shows that one in five Americans thinks they’ll never be able to retire. What accounts for the insecurity?

On an individual level, communication overload can be a serious problem in terms of employee productivity and job satisfaction. On an enterprise level, communication can have serious compliance repercussions. Generic tips for using to-do lists and AI to sort your inbox don’t fully address the problem and its impact on decision-making.