Warren Buffett is known for his long-term thinking. “Someone’s sitting in the shade today because someone planted a tree a long time ago”, he famously said – about society and about companies.

While the financial services industry is based on long-term thinking, we sometimes forget to apply this to our own businesses.

As summer draws to an end, I want to challenge you to think about planting seeds for the future success of your business. Here are three things that might spur ideas.

1. Organic customer growth

At NextWealth, we’ve written a lot about inorganic growth of advice firms and the important role PE is playing in our sector. But, thinking back to Warren Buffett’s quote, what about those seeds we plant for the future. While 10% of financial advisers work in firms that plan to grow through acquisition, that compares to 68% that plan to grow by taking on new clients.

We recently partnered with Aegon to publish a guide to help firms achieve sustainable, organic client growth. Just last week I was speaking to a friend who runs a financial planning business. He lamented that he has been so busy running the business that he had not focussed enough on growth. When you are the principal, an adviser and the main lead generator – it can be tricky to carve out time for client acquisition.

Our guide details six steps to strategic growth based on what’s worked for other financial planning firms. You can download a copy here.

2. AI – adoption and ROI

Over the summer, you may have seen the study from MIT’s Media Lab that found that 95% of AI pilots are stalled and not delivering positive ROI. Successfully implementing AI takes time and money. But financial advisers are investing in the future and many are seeing returns already.

This morning I was reviewing an early draft of our next Adviser Tech Stack report that Chanelle Paynter, Associate Research Director at NextWealth, is writing. She found that over half of advice firms are using AI for meeting summaries.

• Efficiency gains are immediate– advisers consistently cite time savings as the most tangible benefit.
• Integration is still the sticking point– tools work best when embedded into existing workflows. We’ve found that Copilot is a favourite on this front.
• Data is moving centre stage– advisers increasingly see AI as a driver for improving data capture and quality, recognising that long-term benefits depend on clean and consistent inputs.

It’s not easy but firms are seeing immediate ROI – unlike the 95% of failed projects from the MIT study.

Our September Adviser Reviews report reveals the advice tech providers that are winning market share and why, which are meeting the needs of users and what the future might hold for advice tech. You can sign up to get a sample of the report as soon as it’s published here.

After meeting summaries, we hear that marketing is a key area where firms are using AI. That’s why we have two speakers on this topic at our next AI Lab.

• Heather Murray from AI for Non-Techies will talk about using AI for marketing
• Phil Bray from Yardstick will help attendees think about how to optimise websites for AI

To help firms adopt AI responsibly, Morven Grierson from MKC Wealth will round out our agenda by sharing thoughts on governance and risk management in AI adoption.

3. Retirement advice and investment solutions

The third and final area I want to point to where firms are investing for the future is in retirement advice. Product providers are busy developing and launching solutions designed for clients in decumulation. Financial advice firms are reviewing their approach to planning for clients in drawdown. This is inspired both by the regulator’s Retirement Income and Advice Review, tax changes and changes in rates that are making annuities look more attractive.

While our research into Retirement Investment Solutions confirms that advisers view decumulation advice as a planning challenge, not a product challenge, there is a flurry of innovation happening in products and solutions. There are multi-asset funds that include guaranteed income and others that offer regular income payments to mimic a salary. These product providers may be planting seeds for future demand. Time will tell – and our report will give a glimpse of future scenarios. To get a free sample as soon as it’s out, register your interest here.

As the leaves turn from green to red to brown, I hope you will invest in the future of your business.

“Someone’s sitting in the shade today because someone planted a tree a long time ago.” – Warren Buffett

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