The role of a financial agent has become vitally important within the sector, playing a key role in financial institutions, as they act exclusively on their behalf. These experts have become trusted and respected figures in the financial sector.
Currently, financial agents are undergoing a profound transformation marked by the consolidation of the Spanish banking sector, with significant mergers and acquisitions; a major digital transformation that entails being prepared to meet the needs of customers; and a series of significant regulatory changes that seek to improve transparency, security and efficiency in the financial sector.
For this reason, a financial agent must now look to the future. A future full of challenges and opportunities that make this profession an attractive and flexible career model.
Today, the financial agent model is regarded as successful due to the high level of professionalism. They act with integrity, transparency and always in their client’s best interest. Moreover, they need to be capable of operating in a global environment, given how open the financial market is to international competition.
Resilience is a determining factor if they want to offer their clients a high quality service. The new landscape poses many challenges and these are not limited to comprehensive wealth management, but also involve the management of emotions, the ability to adapt to changes in new technologies, working methodologies and regulations.
A clear example of this is the new regulations including the Retail Investor Strategy (RIS), which initially proposed a ban on retrocessions, moving to a more explicit fee-for-advice model. Subsequently, the European Parliament’s Economic and Monetary Affairs Committee (ECON) voted through amendments removing this ban. The European Parliament must now approve these amendments and debate their introduction. In Spain, this significantly affects commission income in the field of asset management.
In terms of competence and knowledge, continuous training is essential. Financial agents are bound by regulations to meet a series of training, experience and knowledge requirements in order to be able to undertake their duties, which has led to greater professionalisation and the pursuit ofexcellence.
In addition to the familiar qualities that a financial agent must possess, such as customer orientation, continuous market training, transparency and professional ethics, another of the most significant hallmarks of the future of this profession is the ability to pursue continuous training and to adapt to the new technological environment, as technological trends are redefining the way in which banks operate and relate to customers. Financial agents must recognise this need if they are to remain competitive in an increasingly digitised world that is shaping the future of the industry.
Among the main challenges is the use of advanced digital solutions, without neglecting the human component. This is the only way to be prepared to face the changesin investor cultureand the new clients that make up the generational shift in wealth, to understand their preferences and to manage their expectations, thereby increasing their trust and loyalty. These professionals appreciate the added value of automated tools that allow them to save time and reduce costs, together with the close and human relationship they maintain with their clients.
Looking into the imminent future, we envisage the era of artificial intelligence as a factor that will impact the banking sector, transforming it significantly. This technological advancement will profoundly affect banking in terms of revenue and loyalty.
A recent Accenture report on the ‘Top 10 banking trends for 2024’ highlights that artificial intelligence could see 73% of banking roles face a significant change. This is why agents must look to the future with this in mind and maximise training in the use of these tools combined with the human component.
Financial agents in Spain are continuing to see moderate growth and the path is becoming increasingly attractive for more and more professionals in the sector. Forecasts point to dynamic growth in the coming years, mainly due to the increase in demand for tailored financial services, which would significantly drive up the demand for more specialised financial agents.
Funds People, 19.10.24