Guest: Mark Hurley, founder of Fiduciary Network and now CEO of Digital Privacy & Protection LLC, a cybersecurity company.

In a Nutshell: Back in 1999, Mark Hurley dropped a bombshell white paper that predicted the wealth management industry would be consolidated into less than 100 firms, there would be a huge amount of M&A, and the small RIAs would fall by the wayside. The first part of Mark’s prediction definitely came true. And as we exit the era of cheap money and roaring markets, the fate of smaller RIAs that aren’t growing organically is certainly up in the air. With tailwinds turning into headwinds, the financial services industry is about to get a lot more competitive and, for some smaller firms, potentially less profitable. But there’s also a lot of opportunity for growth-minded RIAs to differentiate themselves with a higher quality of service and a more human touch.

On today’s show, Mark Hurley discusses his latest whitepaper, Welcome to the Jungle: The Next Phase of the Evolution of the Wealth Management Industry.


.Mark Hurley and I discuss:

  • 8 changes to the financial advisory landscape that firms need to prepare for.
  • 10 traits that the most successful advisory firms of the next 10-15 years will share.
  • How an unprecedented bull run in the markets and the Fed’s ZIRP has overshadowed almost non-existent organic growth.
  • The relatively low cost of acquiring new clients vs. their high projected lifetime value.
  • Why “financial advisors” need to become “advisors” in a more Life-Centered sense.
  • Should all advisors be rain makers? Or should firms separate business development and client relationship responsibilities?
  • Why advisors need to broaden their services beyond “investment functions” before their competitors do — even if it compresses their margins.
  • How client asset thresholds affect the kinds of services you can deliver and, ultimately, your profitability.
  • Why extreme specialization of both services and client niches could be the key to exponential growth.
  • Will consolidation recreate the wirehouse model?

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