Where Will the Next Generation of Advisors Come From?

Where Will the Next Generation of Advisors Come From? (December 2018)

Financial institutions continue to churn advisors, losing 8-20% every year and replacing them, only to lose a similar amount the following year. The net effect is barely any growth in advisor headcount, despite growing opportunity in the institution’s client base. Consequently, the advisor deposit and household coverage ratios are thinning out. Yet Kehrer Bielan Research has consistently found that the typical financial institution needs to double its advisor headcount to meet the investment needs of its clients and realize its potential revenue.

But the recruitment of advisors is challenged by shrinking supply. The advisor population is aging—30% of advisors are over age 70, and there are more advisors over age 80 than under age 30. The traditional sources of advisor training have dried up, and the press tells us that the younger generations are not attracted to the profession.

To help financial institutions close this shortfall in advisors, Cetera Financial Institutions commissioned Kehrer Bielan Research & Consulting to:

  • Study how financial institutions find new advisors;
  • Identify banks and credit unions that are having success recruiting both first career and second career advisors; and
  • Distill best industry practices.




Survey Participants

Armco Credit Union
Arvest Wealth Management
BancWest Investment Services
BBVA Compass Investments Solutions
BMO Harris Financial Advisors
BOK Financial (Bank of Oklahoma)
Burke and Herbert Bank
Centra Credit Union
Central Investment Advisors
Citi Wealth Management
Citizens Securities
Coastal Community Credit Union
Community First Credit Union
Community Resource Bank
Denali Federal Credit Union
Elements Financial FCU
Enrichment Federal Credit Union
Equity Bank
First Bank
First Citizens Investor Services
First National Investment Services
First PREMIER Investment Services
First Tech Federal Credit Union
Franklin Mint FCU
FTB Advisors (First Tennessee Bank)
Fulton Financial Advisors
Hancock Investment Services
Key Investment Services
Kirtland FCU
Navy Federal
Northwest Federal Credit Union
Partners Credit Union
People’s Securities
Popular Investments
Premier America Credit Union
Regions Investment Services
Sacramento Credit Union
Springs Valley Bank
Teachers Credit Union
Unionbanc Investment Services
United Brokerage Services
United Nations Federal Credit Union
US Bancorp Investments
UW Credit Union
VyStar Credit Union
Webster Bank