The industry has adjusted to the U.S. Department of Labor (DOL) fiduciary rule, but its focus on the rule has prevented financial professionals from implementing growth initiatives, according to BNY Mellon’s Pershing.
Financial professionals have prepared for the fiduciary rule through outsourcing, third-party solutions and creating new infrastructures, acording to a report released by Pershing Tuesdzy based on Aite Group’s survey of 290 U.S. financial professionals from broker-dealers, banks, insurance firms and RIAs and interviews with execs at broker-dealer firms.
However, Pershing states that in the meantime most of the industry hasn’t adopted certain growth initiatives to make it relevant to younger generations.
Among professionals that are seeking new methods like digital and social marketing to acquire new clients, 62 percent consider it a major or moderate factor while 38 percent see it as a minor factor or not a factor.
Only two percent claimed their practice has planned to launch a digital advisor platform. And only three percent of those surveyed are using one. Twenty-four percent are not thinking of using a digital advisor platform.
“Firms have spent a fair amount of time adapting to the changes in the regulatory environment. Now, it is time to move beyond the regulatory uncertainty,” said Rob Cirrotti, managing director of investment and retirement solutions at BNY Mellon’s Pershing.
“We must engage in a wider conversation about how technology and talent can create the scale and efficiencies needed to transform the business for the future,” Cirrotti added.
To see the full report, click here.