4 Ways Your Clients Can Benefit from Your Independence

The fast-growing movement to independence continues to gain momentum among today’s wealth managers, with a report from Cerulli Associates showing that 71% of advisors would prefer independence if they were to move to another firm.

There are obvious benefits to building and implementing your own independent business model–more control, flexibility, and scalability immediately come to mind. What can be overlooked sometimes in the transition to independence is how much your clients will benefit as well.

4 Benefits of Working with Independent Financial Advisors

Many of today’s investors have complex needs, and are looking for advisors who can understand those needs to give them the best service and highest standard of advice. Here are four reasons they may be more likely to get that from independent advisors:

1. Keeping clients’ needs front and center: Running your practice independently means you’re free to put your clients at the forefront of everything you do. Focusing on their unique situations, goals and investment preferences helps you understand them on a deeper level, meaning the investment advice and support you offer is tailored specifically to them.

RIA firms, for example, are legally required by the fiduciary standard to act in the best interests of their clients. But even independent advisors who aren’t fiduciaries often have potential to create more time to focus on their clients. The reality of independence means your clients can be your top priority at all times, without any pressure to sell specific products or fit them into predefined service plans.

2. Greater transparency: Confidence in their advisor is critical to client satisfaction, and the more transparency there is around billing, fee structures and recommendations, the higher the client’s confidence is likely to be.

Fee compression and transparency associated with independent advisors is often more client-friendly. With fees usually charged on a percentage basis as opposed to commission-based, you only do better when your clients do better. It’s a model that clients find more attractive and easier to understand.  

3. Delivering a personalized experience: A 2021 McKinsey report shared that 71% of consumers expect personalized services, and 76% are frustrated when companies fail to deliver that personalization. Independent advisors can often provide more personalized care based on their clients’ unique investment needs, so clients are likely to experience more satisfaction than disappointment–and you can potentially see greater client retention and referral rates.

Free from the restrictions of a product-prioritized, large-firm environment, independent advisors aren’t fenced in by limited investment scenarios and platform capabilities. Instead, they have the freedom to choose from the entire investment universe and any platform that fits their business approach best.  

4. The right technology for the best client experience: Rather than being reliant on the technology solutions dictated by their firm, independent advisors are able to select what’s best for their practice and their clients. They have access to technology vendors across the board and have the freedom to use whatever works, meaning they’re better able to deliver what their clients need.

While that ability is certainly liberating, it’s important to make smart decisions when selecting the technology you want to use. If a technology solution isn’t properly integrated, it can cause strategic and tactical roadblocks and inefficiencies. In fact, Aite Group research into RIA technology integration found that technology integration was less than 50% among the RIAs surveyed.

The Freedom of Independence

CG Advisor Network gives advisors the freedom of true independence with a plan, platform and technology solutions that drive growth and help advisors focus on delivering the most value to their clients. 

To find out more about our back-office support, business coaching resources, investment solutions and more, download the CGAN story here

BDs Taking a Hit as More Advisors Choose Independence: Cerulli. (2022, December 28). ThinkAdvisor. https://www.thinkadvisor.com/2022/12/28/bds-taking-a-hit-as-more-advisors-choose-independence-cerulli/

The value of getting personalization right—or wrong—is multiplying. (2021, December 7). McKinsey & Company. https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/the-value-of-getting-personalization-right-or-wrong-is-multiplying

Evernest. (2015, July). Outsourcing: Drive Growth and Profitability, Focus on Core Competencies. Retrieved January 25, 2023, from https://www.envestnet.com/sites/default/files/documents/ENV-WP-OUT-0715-OutsourcingWhitePaper-Final.pdf

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