The next generation of advice (Part 2)

29 June 2016Myra Knoesen

In this second part of “The Next Generation of Advice” we continue were we left off with the next generation of financial planners and clients and why they are essential to the industry.

“They are helping firms become more engaged in various social media channels such as Facebook, LinkedIn, and Twitter to stay connected with clients. They are continually seeking out creative ways to keep clients engaged through exploring proprietary phone apps that can push clients’ info when requested,” says Rianka R. Dorsainvil, a Certified Financial Planner at Financial Services Advisory.

Dorsainvil mentons that it is becoming imperative that we have a cross section of digital touch as we combat the digitisation of advice. “Robo-advisers are the new shiny object on the market, but they are no threat to our profession because the human conversation about life events cannot be duplicated by a computer. However, it is up to us to communicate to clients and prospective clients the value we bring to the table in addition to asset management. This is a great challenge that will stretch our current comfort zones with technology and we should take that challenge head-on,” she said.

“We can become more creative in supporting the needs of our clients and presenting deliverables. The millennial advisers are great resources to tap into and help guide this ship,” she continued.

Traditional versus non-traditional

Millennial planners committing to being practitioners are choosing one of two roads—traditional or non-traditional, says Dorsainvil.

“The traditional NexGen planners are establishing solid footing in their firms. Some are the very first hires and are helping the firm owner establish a career path through trial and error. We are witnesses of the evolution of NexGen planners starting out as a support advisers to now buying into firms. Some may take the client-facing role, and others are very comfortable with behind-the-scenes roles. The beauty surrounding the NexGen planner’s career path is that the path may vary depending on the type of firm and clients served.”

“Young planners on the non-tradional road are taking leaps of faith and launching their own firms. These planners are finding value in embracing their millennial peers as clients, wanting to help fellow millennials make sound financial decisions. Another factor in this leap is the value they place on work/life balance,” she continued.

“I encourage firms to have the conversation around NexGen planners serving their peers and how this goal can be supported. Millennial planners can grow with millennial clients together, much like baby boomer planners grew with their baby boomer clients. The baby boomer multimillion rand client did not start off with that value. Rather they began with a modest income and small nest egg. The same can be true for today’s young professionals,” she said.

Melting pot generation

Although there may be some truth to millennials moving from job to job, Dorsainvil said they have a strong sense of brand loyalty. “You want your firm to be their brand. Build trust with millennials and gain the biggest fan. Millennials, in fact, love to refer.”

“With there being more advisers over the age of 40 than there are under the age of 30, this is a great opportunity for firms to seek out new talent. It is important for a firm’s staff to reflect the melting pot generation.”

Into the hands of the next generation, are we ready to fully embrace the next generation of technology, and challenge our current way of doing things? 

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