McKinsey concluded its report by providing three additional takeaways for wealth managers. First, the havoc wreaked by the pandemic enabled advisors to shine as they calmed down clients and helped them navigate the turmoil. But the mayhem was relatively short-lived, as the financial markets snapped back with amazing speed.
“One thing clients have not had to endure in the past decade is a prolonged market pullback,” the report said. “Advisors who have not prepared their clients well, both mentally and financially, for this inevitability may see a spike in client attrition.”
Second, the pandemic changed client service by making videoconferencing and other remote interactions the new normal. “Firms that want to take full advantage of these opportunities should consider further investments in lead-generation tools and digital-service capabilities,” the report said.
Finally, the demographic changes regarding client ages present a growth opportunity for advisors. “Client age is a powerful driver of organic growth, which many advisors are already benefiting from," McKinsey said. "Advisors who are putting in the work to make connections with clients who are now in their 40s and 50s will reap those rewards over the next two decades.”