Credentials Boost Planners’ Confidence and Client Base: Survey

Other Survey Findings

Asked why they chose a financial services profession, respondents gave these reasons:

• A desire to help others manage their finances and take control of their retirement: 33%
• Interest and passion in investing, wealth management and finances: 14%
• Referred to the industry by others: 12%
• Opportunity for advancement and earning potential: 9%
• Prior job in a career adjacent to financial services: 7%
• Complete change of careers: 6%

A third of financial planners surveyed said the rise of artificial intelligence and robo-advisors is the biggest challenge the financial planning industry will face in the next five years. Six percent said the biggest challenge would be succession planning as senior financial advisors retire.

As they see it, the main downsides of AI and robo-advisors are the dissemination of misinformation and a decline in demand for financial planners as robo-advisor applications will be able to provide their services at minimal or no cost.

As for succession planning, respondents worried about the effect of a combination of exiting senior advisors and little interest from young advisors. CFP said the industry needs to recruit young, skilled advisors.

Fifty-four percent of financial planners in the survey said the industry is doing the right amount to support diversity, equity and inclusion initiatives, while 23% maintained it is not doing enough and 22% said it is doing too much. 

Those that believe the industry is doing too little said they still see a lack of representation within the industry. They also think that not enough DEI-focused work is being done. 

Those who said the industry is doing too much believe that DEI efforts are overdone and that hiring should be based solely on qualifications.