The Fed rate cut and what to tell clients; finding tech talent for advisory firms; wealth management veers toward women

CLIENT MANAGEMENT: The time has almost come for the Federal Reserve to announce its long-awaited interest rate cut. The Fed is widely expected to announce at least a 25 basis point drop as it meets this week. 

The federal funds rate is currently at 5.25% to 5.50%, the highest in over two decades. Financial advisors and analysts have been waiting for this day for quite some time. As an easing cycle draws near, advisors and industry experts explain what they are hearing from clients, how they are responding to them and how they will move forward.

Read: How advisors should communicate the expected Fed rate cut to clients

CTO TALENT ACQUISITION: The financial planning sector is experiencing a growing need to integrate advanced technology solutions, like AI, to remain competitive and efficient. But choosing the right technology for a firm and integrating it properly starts with hiring the right tech leader. This can be particularly challenging for traditional advisory firms that have to compete with hundreds of tech development firms also looking for innovators.   

"They're not just competing against other firms that are performing similar business functions, they're competing against Apple and Google and every other tech firm in every other industry," said Scott Lamont , the managing director at the industry consulting firm F2 Strategy. "It's competitive. Finding good technology talent is a challenge for these firms." 

Read: How advisory firms can win in the battle for tech talent

WEALTH MANAGEMENT: With women expected to add tens of trillions of dollars to their wealth by 2030, the industry must change to serve them, according to a panel of financial advisors and other experts.

The current low representation of women in the financial advisor profession, typical language that doesn't speak to female clients' values and a misunderstanding of demographics could threaten wealth management firms' capacity to serve their clients in the future, panelists said in a session at this week's Future Proof conference. For example, the concern that many clients may outlive their wealth carries a disproportionate impact on women, noted Ashley Bleckner, MA, CFP®, CDFA® , a private wealth advisor with New York-based registered investment advisory firm for women Ellevest — which is led by former Citi and Merrill Lynch executive Sallie Krawcheck.

Read: How gender demographics are tilting wealth management toward women

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