How to make yourself irresistible (to great prospective team members)
It turns out that when it comes to attracting ideal candidates, there are things that you need to do today so that you can find the right team members when you need them.
The DOL Fiduciary Rule means big change. Despite years of consultation, and now fully six months after the announcement of the DOL Rule, we are still figuring out the magnitude of that change. What we absolutely know to be true, is that the ground zero for these changes, will be advisors and their practices.
One area that is going to change a lot is ‘Know Your Customer’ or KYC, and it represents a massive opportunity for advisors who choose to embrace the potential of that change. The old KYC standard isn’t good enough anymore, at least not in a ‘Best Interest’ future. The depth of customer knowledge and awareness that is necessary to provide recommendations in customer ‘Best Interest’ is significant. This has huge implications for financial advisors, their teams and their customers. KYC is core to every advisor practice today, which means EVERY advisor (and their firms), will need to examine how to adjust to reflect this new reality. This means substantial changes in how they approach knowing and understanding customers. And let’s be clear, this is not just what they know, but also how they know it and the processes they embrace to use that knowledge. What is the gap between the typical KYC approach and that which would likely equip an advisor well under the Fiduciary standard? Hard to say. Some advisors are already well down the fiduciary path. But, for others, the gap might represent an effort multiple of 2x, 3x or 5x over current KYC approaches. And it all applies to both their current customers and new ones.
If an advisor has worked with a customer for years, they may still need to increase their understanding of that customer and their circumstances. And, even if they do have remarkably robust customer knowledge, the advisor must to commit to having good documentation and processes in place to ensure that the knowledge is available, usable and kept current. Just because an advisor has been involved with a customer for years, does not mean the advisor has sufficient customer knowledge to act to a fiduciary standard.
And for new customers, the ‘get-to-know-them’ discovery process will need to change for many, many advisors. Advisors will need to go deeper in learning about these new customers – everything about them – from now on. They should do it with a reliable and repeatable process to ensure consistency and to be defensible. And, since the fiduciary obligations may begin at first interaction, so must the process.
Unfortunately for those with weak process today, or those shy about embracing tools, or those stubbornly sticking to the KYC standard, these advisors are at a distinct disadvantage. Not unrecoverable, but definitely in a tough spot, and worthy of immediate, intense attention.
Some advisors will be big winners because their customers will bring more of their financial assets to the advisor’s care and new customers will embrace the advisor’s services.
Quite simply, they will invest heavily in the new customer knowledge expectations and leverage it for their customers’ success.
In doing so, they will help their customers become more confident and deeply vested in the relationship. And doing all of this first is a huge advantage.
Tools, process and speed will win. For the Advisors willing to embrace all three – and quickly – the DOL Rule is probably the greatest gift they will receive in their careers.
Change can bring opportunity. And this time it feels like the beginning of a whole new game.
Referrals are a funny business. Despite high levels of client satisfaction, we’re universally frustrated by how difficult it is to translate that goodwill into referrals. I believe there are three, deeply held, beliefs about referrals that get in the way of our success. And until you tackle those myths, it will be hard to generate the referrals you actually deserve.
Technology platforms are increasingly important in determining which financial services companies will survive and thrive in the digital age – and which ones won’t. Financial technology must meet a growing list of requirements in order to succeed – it must be robust and resilient, flexible in managing complex products and business processes, secure and compliant, and scalable in its capacity to integrate ever-growing unstructured data sets.
Through data intelligence and collaborative solution development, First Rate and Xtiva are aligning to provide enhanced solutions and services to their respective client bases ARLINGTON, TX (July 11, 2017) – Xtiva Financial Systems and First Rate, Inc., have announced a partnership designed to improve access for their respective clients and bring new solution features to […]
The world of wealth management is barely recognizable today in comparison to just a few years ago – and the pace of change is accelerating. We now live in a highly regulated, technology enabled world with a customer/investor base that’s experiencing a major demographic shift. It’s a perfect storm of disruption. All these changes are […]
Reasonable Compensation – a key element of the DOL Fiduciary Rule – is unclear, complicated and time consuming. And it’s a ticking time bomb for firms and advisors that approach it poorly. The Department of Labor has left it up to the investments industry to sort out how to implement a Reasonable Compensation approach – […]
FinTech Veteran to Lead Product Vision and Innovation NEW YORK – April 19, 2016 – Xtiva Financial Systems, the leading provider of enterprise compensation solutions for the financial services industry, announced today that Jeff Marsden has joined the company as Chief Product & Strategy Officer. As CPO, Marsden will be responsible for the company’s overall […]
Top takeaways from the 2017 T3 Enterprise Conference in Las Vegas, by Xtiva CEO Tom Moysak.
Xtiva Financial Systems has announced long-term mandates from two of America’s largest insurance companies. These mandates significantly extend Xtiva footprint in this market.
Alliance enables Xtiva and Athene clients to more easily access services. New York, NY – February 9, 2017 — Xtiva Financial Systems and The Athene Group have partnered to offer enhanced connectivity between their product suites, enabling their respective customers to materially increase technology capabilities and ROI on their Wealth Management technology stack. “Wealth Management […]