11.19.25
Advisor Shortage? You’re Just Not Looking in the Right Places
by: Michael Miroballi, CFA
There’s an expression we use in the retail bank investment world: we build them, they buy them. It speaks to one of the key reasons advisors choose to build their careers with banks or credit unions — access to referrals from loyal customers of the financial institution.
We’ve all heard about the growing shortage of financial advisors. According to McKinsey’s Financial Services Practice (“The Looming Advisor Shortage in U.S. Wealth Management”), an estimated 100,000 advisors are expected to retire by 2034. That’s creating fierce competition — not just to attract talent, but to retain it. Several factors contribute to the lack of new advisors entering the industry: limited formal training programs, negative perceptions of financial institutions among younger professionals, commission-based compensation structures and a historical lack of diversity.
A May 2023 BISA/Cerulli study (“Improving Recruitment and Retention Throughout Advisors’ Lifecycle”) found that from 2018 to 2023, overall advisor headcount grew at a mere 0.2% CAGR. Retail banks saw modest growth at 0.7%, wirehouses experienced a net loss of -1.7% and national/regional brokerages grew just 1.7%. RIAs were the clear winners, growing at 4.4%. Meanwhile, advisor productivity continues to rise, driven by asset growth at 11.6% CAGR — making the limited talent pool even more attractive to competitors. This trend is not sustainable.
So, what can financial institutions do to reverse it? That’s the purpose of this paper: to highlight the advantages banks and credit unions have and offer a perspective on how to best leverage them for sustainable growth.
I’ve spent nearly 35 years in this industry — 30 of them within banking institutions — as a financial advisor, portfolio management leader and retail broker-dealer/RIA president. My views are shaped by both experience and data.
When I entered the industry in the 1980s (I can’t believe I just said that!), “broker trainee” programs were the norm at large wealth management firms. I remember the structured exam prep and the relentless discipline of “smile and dial” prospecting. My cohort was a mix of recent college grads and second-career professionals, overwhelmingly white and male. Wall Street was a highly attractive career destination. Fast forward to today, and many of those same professionals are preparing to transition their books to the next generation. The problem? The talent pool isn’t replenishing fast enough to meet the needs of today’s investors — despite the rise of self-help investment tools and resources.
Wealth management firms have poured resources into recruiting talent and clients from competitors, often at the expense of growing talent internally and nurturing a strong culture.
As mentioned earlier, retail banks and credit unions have a distinct advantage: access to a large pool of potential investors who already bank with them. These institutions are especially attractive to early-career advisors looking to build a book of business. They also tend to have a more diverse talent pool — individuals who develop skills in the retail branch and later pursue careers in investments and planning.
One of the most effective ways to source and develop talent internally is through a licensed banker program. Having led two sizable investment programs — one with a robust licensed banker program and one without — I can say with confidence that the difference is dramatic. Programs with strong licensed banker pipelines recruit and develop talent far more effectively. So why do so many institutions waffle on investing in these programs? To me, it’s not even a question.
The benefits are clear:
- Lower cost compared to buying a book of business
- Stronger culture of loyalty to the firm and its clients
- Greater diversity, reflective of the communities served
- Highly motivated advisors who understand the bank’s culture and connect with the retail team
It’s well known that investment services penetration among consumer bank clients is low. Most institutions report a penetration rate of just 4–6%. The July 2025 Kehrer Research study found that banks with 25+ advisors achieved a 6.3% penetration rate — up from 4.9% in 2023, but still a massive untapped opportunity. Even doubling that rate would leave significant room to grow wallet share and deepen relationships with existing customers.
So, I ask: why buy clients when you can leverage institutional loyalty and grow wallet share organically? That reinforces the strategy of building your advisor team internally and supplementing externally — rather than the other way around.
What does it take to build a team internally — and just as importantly, keep them for the length of a career?
First, a financial institution needs a formal training program to license colleagues. Selecting the right candidates is key. Exposing licensed retail colleagues to investment services through joint appointments, structured training and advisor mentorship helps surface high-potential talent. Formal mentorship programs with a defined pathway toward licensing, training and branch advisor opportunities are essential. Occasionally, mentorships evolve into partnerships, given the right situation and colleagues.
An incentive plan that supports early-career advisors in building a relationship-based client book is critical to their development.
As advisors grow and succeed, it’s especially important to offer a career path. That path can take several forms. One option is for advisors to build their book through branch and segment partner coverage, then transition to managing their book without branch coverage — often referred to as “second story advisors.” These advisors typically work outside the branch lobby and rely on centers of influence and client referrals.
Another path is forming advisor partnerships or teams, with a senior advisor acting as mentor. This model pairs the experience of a seasoned advisor with the business development energy of a newer advisor, often providing branch coverage together. These partnerships are a great way to instill strong business practices in junior advisors — many of whom come from licensed banker programs.
Offering career path options — and a clear transition plan for advisors nearing retirement — is essential to retaining both the advisors and the clients that the institution helped build through its referral network.
With a clearly defined career path in place, an incentive plan that supports building a client book the right way becomes a key enabler. There are many ways to structure compensation, but the goal is the same: build a book of business with deep relationships. That foundation sets the advisor on a path toward long-term success.
Banks and credit unions have a distinct advantage in attracting new talent to our industry — one I don’t think we fully optimize. Yes, it can be a solid strategy to bring in an advisor with a fully developed practice. But that comes at a cost — financially, and potentially, culturally.
Our industry needs talent to replace the advisors who will be transitioning out over the next decade. The time to get aggressive in building that talent is now. Otherwise, we’ll all be chasing a limited pool — and paying dearly to acquire it.
Michael Miroballi, CFA, is the president of The Huntington Investment Company and a former president of BISA.