Advisors also say Covid-19 is changing the way they work and operate. More than half (57%) said the virus has reduced their need for office space and expect that to be a lasting change, while 49% of respondents said working with remote, distributed staff will be a permanent change.
The coronavirus pandemic is an opportunity for the RIA business to make some long-needed changes, said Stacy McKinnon, chief operating officer at Morton Captial in Calabasas, Calif.
“I think we have a unique opportunity right now to look at the world around us and try to meet people where they’re at,” said McKinnon. “Over the last decade, growth wasn’t as challenging because of the euphoric market that we had prior to Covid-19. Great returns are not as much a catalyst for change; this year has provided the RIA space a catalyst for change.”
Other long-term changes due to Covid-19 cited by survey respondents include using virtual channels for business development and sales, adopting more automated and technology-supported workflows, and moving toward more lower-cost virtual events for CE credits and networking.
The top three predicted permanent changes due to Covid-19 are increased use of video-enabled meetings, reduced travel and using more hybrid or remote distributed teams to conduct business.
Advisors in the survey said Covid-19 has given them an opportunity to demonstrate their focus on client service, leverage technology to work remotely, differentiate themselves from their competition and develop better client relationships. But they also said the virus outbreak has challenged their ability to plan, to achieve investment return goals and to onboard new clients.
Fifty-two percent of survey respondents said they're working the same number of hours while working remotely, but 37% say they are working more hours. Meanwhile, the proportion of advisors concerned about their ability to reach client goals increased to 50% from 40% in September 2019 and 30% in May 2019.
Schwab collaborated with Logica Research to conduct a two-week online survey in August comprising 1,347 independent advisors who custody with Schwab.