Many financial advisors are moving toward a business model that focuses more on holistic planning. They also are interested in reaching the young and underserved population, according to a survey by global fintech company Broadridge Financial Solutions Inc.

The survey of more than 300 advisors revealed that 51% plan to offer more holistic financial wellness services. Advisors under age 40 are four times more likely than older advisors (over 55) to believe the main value they provide to clients is holistic financial planning, the survey said.

Broadridge surveyed advisors across wirehouse, regional, independent broker-dealer and registered investment advisor channels between February 21 and March 1. It found that a majority of advisors intend to move toward a team structure as opposed to working in solo practices. In fact, 80% expect to be part of a team in three years.

Further, the survey revealed the number of advisors with 75% or more in fee-based assets under management will increase from 51% to 67% over the next three years.

Matthew Schiffman, principal of distribution insight at Broadridge Financial Solutions, pointed out that as advisors accelerate the move to holistic planning, they will need a digital-first mindset and broad support from asset managers.

“For the latter, the onus is on asset managers to address advisor and ultimately investor concerns – particularly ones that are exacerbated by the global crisis we are in," Schiffman said in a statement. "For the former, there is simply no longer a choice. The industry has been inching toward digital distribution of content and communication for some time, and overnight, we stopped inching and took the full leap.” 

The survey found that nearly 80% of advisors indicated they want asset managers to help them optimize their businesses, and 78% said they want support on portfolio construction and risk management. However, only 25% of advisors said they actively seek out new relationships with asset managers.

Broadridge also noted that 57% of advisors seek assistance on digital transformation efforts, as well as support from asset managers to build a tech stack such as CRM, financial planning software and data analytics. And 41% said they're interested in outsourcing strategies.

Additionally, the survey revealed that advisors are interested in reaching out to the younger generation and to a diverse population, and look to managers for support. Nearly 60% of advisors expressed interest in receiving content on how to market to women and minorities, and 71% of advisors expressed interest in acquiring new millennial investor clients.

They cited wholesalers, whitepapers (or other thought leadership) and websites as the preferred ways to receive content and support from asset managers.