It’s a great time to be a financial advisor. Demand for wealth management services and financial advice is skyrocketing right now, as Americans' needs are becoming more complex. Revenues generated from fee-based advisory relationships have increased from approximately $150 billion in 2015 to $260 billion in 2024, according to McKinsey estimates.2
Yet, while the number of Americans looking for financial advice is growing, the number of financial advisors providing that advice is shrinking. One-third of advisors – more than 100,000 – plan to retire in the next ten years, according to industry estimates. These retirees currently manage 42% of the industry's assets.1
As a result, there’s an opportunity for students and young professionals to jump in and fill these shoes – but where are they? According to Cerulli, the number of new advisors barely offsets retirees, with headcount increasing by just 0.2% over the last decade.3 Not only that, but the rookie failure rate hovers around 71%, indicating a significant number of rookie financial advisors fail to establish themselves and end up leaving the industry.3
Fewer advisors mean a heavier workload for those remaining, plus a diminished capacity to serve existing clients and acquire new ones. To combat this talent shortage, firms must expand their pipelines. Wealth advisors need to find new channels for reaching prospective talent and sparking interest in the field. By providing meaningful development opportunities, our industry can prepare new professionals for successful careers and facilitate a smooth succession as veteran advisors retire.
Envestnet on Campus: Investing in the next generation of advisors
At Envestnet, we’ve long recognized the tremendous opportunities that exist for students in the wealth and asset management industry. We’ve also seen that there’s a lack of awareness about career paths in financial services, with many students unsure of how the industry works. It’s clear that in order for our industry to survive, it’s critical to attract, support, and nurture young talent.
Envestnet on Campus (EOC) serves as the bridge between college students and our industry. Currently celebrating its ten year anniversary, EOC’s mission is to prepare and position students for a vibrant career in wealth and asset management. By connecting employers to this talented, diverse pool of workforce-ready interns and entry-level employees, wealth management firms can solve the talent shortage and decrease recruiting and onboarding time and costs.
The Envestnet On Campus program acts as a bridge for college students, allowing them to see how academic concepts learned in class are used in the real world of financial planning. For many students, this program solidifies their decision to minor or major in our financial planning and ultimately to become a professional financial planner.
Nick Kilmer, Financial Planning Program Instructor, Department of Agricultural Economics, Texas A&M
Since its inception in 2015, EOC has equipped over 9,900 students from diverse academic institutions across the U.S. with essential industry knowledge and connections. 60 universities and colleges currently participate in EOC and promote and monitor the program on their campus every semester.
Connecting students to opportunity
Envestnet on Campus not only prepares students with the knowledge they need, but part of the program’s goal is to connect these well-prepared graduates with firms where they can make a meaningful impact, and ensure students have the tools needed to be successful.
We continue to see growing interest in wealth management and our students are so excited about the opportunity to earn a substantive credential that they can add to their resumes as they are applying for internships and jobs.
Kate Grady, M.A., Associate Director, Experiential Education & Employer Outreach, Villanova University
Cost isn’t a barrier to students or universities interested in participating in EOC, thanks to the generous support of EOC sponsors like BlackRock, Franklin Templeton, and Fidelity. With help from our sponsor Blackrock, we also offer Envestnet scholarships through the Center for Financial Planning to students seeking to complete a certificate-level or undergraduate-level CFP Board Registered Program, either of which qualify students to sit for the CFP® exam. More than 135 scholarships – representing 68% women and 69% non-white – have been awarded and over $750,000 disbursed to date.
Support tomorrow’s financial leaders today
Ultimately, the advisor shortage isn’t a future problem – it’s a now problem. But programs like EOC can help resolve the shortage and close the gap that jeopardizes firms’ current operations and future sustainability. Through EOC, Envestnet isn’t just working to solve today's talent challenges, but building the foundation for a stronger, more inclusive financial services industry.
So whether you’re an aspiring advisor or an industry veteran, the time to get involved and make a difference is now. The future of our industry is counting on it.
We support and encourage students by providing mentors and career development tools and extend opportunities for internships and job placements. It’s gratifying to see the results. Many graduates come back to tell us how EOC helped them get their first job. Some are even paying it forward and have become mentors themselves.
Katy Yocom, Program Management, Director of EOC
Interested in becoming a sponsor to help us bridge the gap? Learn more about Envestnet On Campus here.
