Is Making The Transition
the Right Move for You?

What to Consider When Taking the Leap

Financial advisors considering a firm transition have no shortage of important issues to mull over—the least of which: Should I even do it? Before making a final decision, here are three critical questions to ask yourself:

In the spirit of helping make your transition a smooth one, we offer the following three action points:

How Will a Transition Impact My Clients?
Among the multitude of considerations, this question is paramount. According to Financial Planning, advisors transitioning to firms retain 87% of their clients. [Reference https://www.financial-planning. com/news/going-independent and link to “Financial Planning”] The article further explains how some client-advisor relationships actually improve after a transition because both parties are now navigating the ins and outs of running a business.

Informing your client base you are entering a new phase of your career and asking them to transition with you is the first piece of the puzzle. Most importantly, you need to make the transition as seamless as possible for those clients who choose to come along. A big part of doing so is communicating your intentions early—and often. Update your clients on the transition process and be sure to have solutions in place for all of the needs you were able to meet previously. Keeping your existing clients happy is essential to both retaining their business and having them help you grow your firm through word-of-mouth referrals.

Why Is This Move the Right Choice for My Clients?
If you’re like most financial advisors who consider a move, it’s likely because you feel your clients are being underserved and you have bold ideas about what you’d do better if you were able to make important decisions.

When developing and communicating the services you plan to offer your clients, you must clearly differentiate them from the service they are currently receiving and what they would get from your competition. For example, do you offer greater flexibility? Faster response time? A more hands-on approach? Be clear and direct about the benefits clients will enjoy if they decide to stay with you.

Can I Successfully Execute for my Clients?
It’s one thing to have a bold vision, but determining how you’re going to achieve that vision is a comprehensive task requiring exploration, consultation and careful planning. If you’ve been able to answer the first two questions, you know how the transition will impact your clients and you’re prepared to show them why staying with you is the right choice. Now you need to determine if you can successfully execute on your vision.

No matter how strong, your client-advisor relationships will only carry you so far. As an independent financial advisor, you need to have real solutions in place for your clients that are available to them immediately. You’ll need a detailed plan—and then you need to execute it.

Of course, once you lose access to your current bank, your clients will need a new banking solution. Partnering with a bank that has a proven solution in place for this exact instance is crucial to a smooth client transition.

TriState Capital Bank: Here to Help
There’s no doubt that transitions can be stressful. But they can also be exciting and create opportunities for personal and professional growth. As an advisor-centric bank, TriState Capital Bank serves as a trusted partner for thousands of wealth managers and financial advisors as they transition to joining or launching independent firms. We are a leading provider of securities-based lines of credit (SBLOCs) and can help meet refinancing requirements as you transition your clients between firms. If you’re interested in learning more about how TriState Capital can help you make a smooth and successful transition, we’re ready to help. Let’s start the conversation today.

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