Why the Financial Services Industry is Becoming More Human, Not Less

In this series, professionals debate the state – and future – of their industry. Read more here, then write your own #MyIndustry post.

The idea of financial advisor as a “hot” job may raise eyebrows at a time when you can open an account, buy a fund, or arrange a loan with a few prompts from the latest smartphone app or online advisory service. Some may think human advisors are becoming obsolete. Quite the opposite.

It’s true that technology is enabling people to take greater control of their own finances than ever before. And that’s a great thing. The best financial services firms embrace technology rather than hide from it. But rather than reduce the need for financial advisors, technology has made them more valuable than ever, freeing them to build stronger relationships and help people make smarter financial and life decisions. 

The fact is, a lot of people want, and need, help making these decisions. They know which ones they feel comfortable making on their own, and when life-changing events—such as starting a family, losing a job, sending the kids to college, or financing a small business—call for a conversation with an advisor who understands who they are and how to help. 

For all the innovations we’ve seen, our industry is becoming more human, not less. And I’m excited to see the new generation of advisors coming into our firm and the industry. Young people today are perfectly suited for these times and this role, because they value what advisors these days are called upon to deliver. They are committed to family relationships across generations, optimistic, and adaptable. Perhaps most notably, they are empathic— because they have come of age during times of financial crisis and uncertainty. This gives them a deeper understanding of the concerns and needs of others.

When I visit a college campus or speak with someone considering a change of career, those unfamiliar with financial services often assume they need an advanced degree in finance or accounting, or that they’ll spend their days strapped to a chair, staring into a computer screen filled with market statistics. I tell them what we’re really looking for are creative thinkers who have a passion for solving problems, and who enjoy being part of a team with other talented people. 

In fact, advisor teams are essential to the way we help each individual client manage the unique complexities in their lives. For instance, one team member might serve as a sounding board for their clients’ important decisions, while another could help them manage the day-to-day details of their financial lives or  offer access to specialized knowledge in another area of their firm—such as trusts, mortgages, or long-term care planning—where clients can really use help. With this team approach, the path to success as a financial advisor can now take many forms and accommodate a variety of skills. Make no mistake: the job is very challenging, and at its core requires hard work, discipline and a commitment to the long term.  But those are qualities I see in abundance in many young people now entering the workforce.  

As a generation, Millennials in the years to come will control trillions of dollars of wealth, through both inheritance and their own hard work. They will need help making decisions. Who better to serve them than financial advisors who share their life experience? Young advisors today have a great opportunity to earn the trust of both new and older generations of clients by finding creative ways to help them make key financial and personal decisions—and doing it through old-school,  one-on-one relationships. It’s going to be a wonderful thing to see. And if I had the opportunity to start my career all over again, I’d be right there among them.

John Thiel is the head of Merrill Lynch Wealth Management and is responsible for the strategic management of 14,000-plus financial advisors and 6,000 client associates, as well as more than 200 private wealth advisors.

Merrill Lynch makes available products and services offered by Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”) and other subsidiaries of Bank of America Corporation.