2 min read September 2023 — The business of financial advising has continued to see change over the last few years and organizations like Wells Fargo Advisors are adapting and innovating to this change. “There’s a transformational change in the delivery of client review and reporting,” Noah Rubin, managing director of investments for Wells Fargo Advisors, told Invest:.
How has the business of financial advising changed in recent years?
There’s a transformational change in the delivery of client review and reporting. Traditionally the client would come to the office, be handed printed reports and a discussion would be had. These days clients are demanding we provide the same substance and material via video conference and online platforms, not just basic information is wanted in a virtual fashion. They want the full array of analysis, information and guidance delivered in a digital format, and they want it delivered in a way that still has a feel of intimacy and customization that occurred during in-person meetings. Such that if you are a client, you can pick up your cell phone, log into your account and almost start doing the investment planning yourself. You still need financial guidance from a professional with all of the information readily available on your device of choosing. Wells Fargo has recently introduced a platform, LifeSync, to address this demand.
What specific challenges are you facing as a result of the technology push in the financial world?
One challenge is protecting those clients that are not interested in being dragged into the digital age. This segment doesn’t want to engage on the tech side of things. They’re being forced to adopt all these mobile trends. We can’t lose sight that some people want traditional methods of meetings and information sharing.
Cybersecurity continues to be challenging as we see fraudsters continue to adapt and create schemes around the digital adoption of communication. The challenge is delivering personal financial information to the platform of the client’s choice – laptop, phone, tablet – in a way that is secure and protected.
What is your perspective on the current economic environment?
I believe we got past the debt limit issue in 2023, and we are working through rising interest rates. Americans are hard working, innovative and collaborative which is the recipe for a prosperous economy. Specific to Palm Beach County, there are excellent entrepreneurs, professionals and successful business owners that create an ecosystem for sustained growth. Whatever challenges come next, historically this region has been able to figure it out and get through it.
Is there any particular new regulation or legislation you are following closely?
Florida has become the largest state to mandate financial education in high schools. So, for the first time high school students, in public schools, will be required to take investment planning education classes. Wells Fargo Advisors is a big believer in this and promotes financial education for our youth.
There is another interesting piece of legislation for those individuals who have large, required IRA distributions, in that they can now move up to $100,000 to charity. That’s major, not only for the nonprofit sector of our towns but also for the high-net-worth individuals as a way to save on taxes. So, instead of having to pull the money out and pay taxes on it, people can move it right to charity. I believe that legislation has been substantially helpful to our community.
How have the migration trends to Palm Beach changed in recent years?
Historically this was a place where the super successful individuals would come for vacation or come for retirement. Now it feels like these same people are moving to the county, living here and operating their businesses from here. It is a substantial change.
How is that changing the services you provide?
These types of individuals are quite often looking for direct private investments. Wells Fargo Advisors has to be able to provide those deals. They’re also looking for more ultra-high net worth concierge services. It’s become much more than just providing investment choices.
What is your opinion about cryptocurrencies as investments?
This is a difficult challenge. Clients are asking financial advisors for help with Crypto investments, but my firm, and most large financial institutions, cannot recommend nor discuss Bitcoin or any digital assets. At some point I think regulators will figure out how we can help clients in this area, maybe 2024 will be the year.
What is your outlook for the next few years?
There’s a big bank versus small bank challenge right now. Several banks have gone out of business this year. I believe there may be a real challenge this coming year for these smaller banks to keep the confidence of their clients. This seems to be a major trend around the country. We may see more small banks struggle with credibility and client confidence going forward.
**Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC, Member SIPC, a registered broker-dealer and non-bank affiliate of Wells Fargo & Company. CAR-0723-01388
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