Credentials Boost Planners’ Confidence and Client Base: Survey
Continuing financial education breeds success and career satisfaction, the College for Financial Planning found.
Seven in 10 graduates of the College for Financial Planning saw an increase in their client base after earning their most recent financial credential, according to a survey released Monday by the college, a Kaplan company.
The credentials included certified financial planner, chartered retirement planning counselor and accredited asset management specialist.
On average, 80% of respondents said they had become more confident in speaking with clients after earning their most recent financial credential, with 91% of CFP certificants expressing greater confidence.
Sixty-nine percent of the college’s graduates reported being more satisfied with their financial planning career, including 82% with the CFP designation.
“The financial planning sector undergoes constant change, yet a consistent factor persists: Success for those who are a part of it, whether they are just starting off in a career or a tenured professional, hinges on financial education,” Dirk Pantone, the college’s president, said in a statement.
“As these survey results demonstrate, financial education can lead to increases in confidence, technical knowledge and soft skills — all of which are necessary for better serving clients and helping them attain their goals.”
The college conducted the survey, which explores the experiences, interests and viewpoints of professionals in the financial services industry, last summer among 951 recent graduates of the college’s Certification Professional Education Program, each of its 11 professional designation programs and its master of science degree programs.
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.