Even if colleges ramp up degree programs in financial planning and related fields, advisory firms are going to have to rethink their hiring philosophies to meet the growing demand for investment advice, industry representatives and academics say.
Much of the new-gen challenge involves demographics.
"We are really worried that there simply aren't enough financial advisors to serve the number of investors who want high-quality advice," Dellarocca says. "Our businesses need to be about longevity and sustainability."
Too often, advisors dismiss the value that recent college graduates can bring to a practice. At
To be sure,
"I think this is one of the biggest issues facing our industry that no one wants to address," says
At the FSI conference, panelists urged advisory firms to work more closely with local colleges – offering internship programs, dispatching advisors to visit campus business clubs, delivering guest lectures or teaching adjunct classes.
In a survey Pershing commissioned last year, 96% of college students said they had heard of the advisory profession, but just a quarter said they were "familiar" or "very familiar" with the field, and only 7% said they were interested in a career as an advisor.
"If we're not focused on the people who are graduating with these degrees and we're not aware of the programs, they're certainly not aware of us," Nelson says.
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