Broker-dealers often provide an array of technology, service tools and resources for affiliated advisors, designed to aid in the operation and growth of advisors’ practices. However, advisors often overlook the offerings due to reasons such as their focus on daily workload, skewed views of compliance and a lack of demonstration of the capabilities provided, according to John McClellan, Chief Risk and Business Officer at Axtella.
We spoke with McClellan, who explains that advisors are missing available opportunities from their BDs, and advises BDs on how to increase advisors’ uptake of these resources and services for the benefit of both advisors and their affiliated BDs.
WSR: What are some of the most underutilized resources and services that BDs offer to advisors, and why do you think these tools are often overlooked?
McClellan: There is a plethora of tools available to financial professionals at independent broker-dealers. Sometimes, in the hustle of day-to-day business, servicing clients and managing investments, it is easy to stay “head down” and not utilize all of the services available, such as free technical support or assistance setting up networks, acquiring new hardware or strengthening cybersecurity.
Another area often overlooked by advisors is compliance services. Rather than looking at compliance as “business prevention,” many successful advisors have learned to incorporate their compliance department into their business. Financial professionals should utilize compliance as a business partner that consults with advisors before they spend money on marketing programs and performs due diligence for them.
WSR: How can broker-dealers better communicate the value of their services to ensure advisors are not only aware of but also motivated to fully leverage the tools at their disposal?
McClellan: The growth and business success of its financial professionals is paramount to the health, stability and success of the broker-dealer. The more frequently that broker-dealers can demonstrate not only the resources and services available, but also the successes of advisors who incorporated these tools into their practice, the better chance that other advisors will take notice.
The more frequently that broker-dealers can demonstrate the successes of advisors who incorporated tools into their practice, the better chance that other advisors will take notice.
Broker-dealers can leverage webinars, conferences and individual outreach from business coaches. For instance, we have seen success with small to midsized “roadshows,” demonstrating important tools, platforms and initiatives in a hands-on environment.
WSR: Are there specific examples where you’ve seen advisors transform their practice by fully utilizing their broker-dealer’s offerings? What were the key factors that led to their success?
McClellan: I have witnessed advisors take their practices to the next level by embracing some of their broker-dealer’s offerings.
For example, some financial professionals use our social media platform, implementing Facebook, Instagram and X into their marketing efforts. This enabled them to connect with younger potential clients, while also allowing them to touch base with their existing clients in modern ways.
Advisors who incorporate compliant texting into their businesses have seen benefits as well. Not only does it keep them in the good graces of compliance, but it allows advisors to quickly and efficiently reach customers, confirm appointments and get quick answers when needed.
Jeff Berman, Contributing Editor and Reporter at Wealth Solutions Report, can be reached at jberman@wealthsolutionsreport.com.
