How Next-Gen Advisors Are Breaking Into the Industry

When Seyi Olabanji was in high school, thinking about what field he’d like to work in, he did what any Gen Zer would do: He asked the internet.

“I went on YouTube and searched, ‘What’s the best major?’ and found finance,” he told Advisor Upside. He eventually narrowed his options down to financial planning, joined his college’s wealth management club and worked multiple internships. Now, he’s graduating from Michigan State University this semester and is going straight into a job at JPMorgan Chase. He’s fully aware of the challenges ahead. “The average financial advisor is in their 50s. I’m only 21,” Olabanji said. “So being able to build trust with clients is going to be a real challenge for the foreseeable future.”

Thanks, Coach

Nearly three out of every four rookie advisors will leave the profession within their first few years because of trouble getting clients and a lack of guidance, according to Cerulli. It can take years to build a book of business, a daunting task for any advisor, let alone one only a few years out of college. But some managers are stepping in to help.

Michael Bush, with Nicole Cole Financial Services Group, didn’t study finance in college, but his managing advisor has shown him the ropes and provided him with clients already established at their firm. “We share a joint book that she passed down some clients for, but I’m doing prospecting with my own clients, too,” he said, adding that the book is still relatively small, including some family members and young professionals. “I don’t come from a financial background, so there’s a learning curve.” 

Place Your Bets. Younger generations are much more fluent with their finances than their parents, which can help build new relationships. Dre Watson, also a finance major at Michigan State, said he appreciates his generation’s enthusiasm for investing, but the approach isn’t as robust as it could be. Many of his peers who are interested in finance are using day-trading platforms like Robinhood and Webull.

“With technology, investing information is more readily available, but they’re taking more of a day-trading route instead of a retirement approach,” he said. “So they’re kind of putting all their eggs in one basket.”