Calls to merge accounts elevated to twice their previous levels as the pandemic locked down the economy, and stayed there, he said.
Christensen said that the recent increased urgency around technology and compliance concerns are likely driving some smaller firms to look for acquirers.
“If you were moving towards retirement and this was going to be your succession plan, this might have seemed like a good time to be done and therefore not have to learn a lot of new things and change the way you do business,” he said. “On the other side, we’re seeing aggressive M&A activity from strong firms who already have an amazing digital presence. They’re sensing an opportunity. Even inside some of the independent broker-dealers, they’re building funds internal to the firm to help finance this activity for their advisors.”
5. Mobile, location independent interactions have become the best channel providing financial advice.
Even during a year when many advisors were required to work from home at their desktop personal computers, there’s been a shift to more mobile-oriented operations, said Christensen.
“The number of communications that advisors sent out that were intended to be consumed on a mobile device has increase consistently,” he said. “Advisors working with us are clamoring more and more for a truly mobile experience.”
Advisors, as well as clients and prospects enjoy the ease of mobile applications, where they can “swipe” to ask and answer questions and change elements of their plans, he said.
In response to rising demand, FMG Suite is releasing its first mobile application for Apple’s iOS and Android that will allow advisors to compliantly interact with their customers directly via mobile platforms.
Christensen also mentioned a couple of other trends.
“From a fintech standpoint, we’re seeing that there’s a desire to have both the option of buying a bundled experience, and buying an unbundled point solutions,” said Christensen. “One thing we’re looking at is introducing more point solutions to customers so they don’t have to make big, bundled purchases. Advisors are often on a journey with their technology, the first thing they want might be an online brand experience. They can do that with a website and editorial content. Then, later, they want technology that enables better client relationships. Then, after that, they want to figure out digital prospecting.”
Technology providers like FMG Suite will be trying to capture the trend of allowing advisors to take “digital baby steps,” he said, small purchases or upgrades that allow them to implement technology gradually.
Christensen has also noted a gradual but significant demographic shift in FMG Suite’s users, trending towards younger and more female advisors.
“These are advisors who are comfortable with the digital experience and they require a higher level of service, and that’s why they’re leaning on companies like us,” he said.