5 Ways Financial Advisor Designations Can Jumpstart Your Career

The career path of a financial advisor (FA) is fraught with obstacles. How do I gain a competitive advantage? How do I establish myself as an expert in my field? The answer: earning a financial advisor designation.

While almost all FAs hold solid educational experience, obtaining a Bachelor’s degree or even a Master’s in finance simply isn’t enough anymore. Your competitors will share a similar background and offer the same services. A large corner office, a charming smile or a fancy degree won’t set you apart from the competition, but obtaining advanced designations will.

Financial advisor designations are professional designations awarded to an individual only after they have completed a sequence of coursework and classes and achieved a predetermined level of competency as defined by passing testing requirements.

Whether you’re new to the field or an experienced veteran, financial designations offer numerous benefits and lend credibility to the financial planner. Though the list of reasons to pursue a designation is long, here are 5 of the most valuable ways advanced training can improve your performance and positively impact your career.

1) Attract more customers - A professional designation proves your commitment to helping clients and gives you a competitive edge. Becoming a Chartered Financial Consultant® (ChFC®) or Retirement Income Certified Professional® (RICP®), for example, helps you earn the trust of prospective clients who, when choosing a financial advisor, are in the process of making a major financial and life decision. Many clients require tangible proof that an advisor can be trusted with managing their finances. Designations serve as objective proof of your professional capabilities and show you are prepared to go above and beyond your competitors.

2) Increase client retention - Once you’ve gained customers, you’ll want to hold onto them, right? It’s true what they say: it’s easier and less expensive to retain customers than to attract new ones, with new customer acquisition averaging anywhere from 6-10X more expensive than customer retention. A recent study conducted by PriceMetrix found that advisors who retained 95% of their clients over a three year period saw a 25% increase in assets under management (AUM), while those who retained 80% of their clients saw an increase of only 12% AUM during the same time frame.

Financial advisor designations give clients a reason to stick around. Customers need reassurance that their assets are in good hands. Professional designations demonstrate your extensive knowledge and your ability to meet rigorous professional standards, impressing upon clients that you are more than capable of managing their wealth and financial needs.

3) Designations matter to clients - Designations mean something to customers. Before clients decide on a financial advisor, they consider all of the acronyms following your name. Handling their finances is an enormous responsibility, and prospective clients will do research on designations before choosing an FA. At the very beginning, your prospects are actively searching for answers about how to choose an advisor in the first place, and there are no shortage of print and online resources educating them about the importance of an advisor’s advanced credentials. Having designations, and having the right designations, could mean the difference between them seeking out your services or turning to a competitor who has earned designations.

4) Keep pace with the competition - If you are still unsure about professional, you should know that many of your competitors have already put in the time and effort to gain their designations. As of 2014, about 25% of all FA’s were CFP® certified.

If you want to appeal to clients, you need to keep up with or even stay ahead of the competition. Obtaining designations and continuing to gain knowledge will only improve your chances of attracting and retaining clients. 

5) You are in control - The market, your clients, the competition - these are all variables beyond your control. Your education is one variable you can influence and own, and it puts you in the driver’s seat.  When faced with an unpredictable client or a volatile market, you can find reassurance in the knowledge that your industry expertise is unaffected. Equipped with your professional skillset and advanced education, you can propose unique strategies and solutions in times of financial uncertainty. 

Obtaining a designation (or multiple designations) is essential if you want to grow your business and establish yourself as a credible and trustworthy industry expert. The American College of Financial Services offers a variety of designations for financial advisors seeking specific expertise. To learn more about our designations, download your free guide - 6 Ways an Advanced Financial Designation Helps Grow Your Practice - or call one of our expert advisors to discuss which designation program fits your specific professional and career needs: 1-888-263-7265.