Edward Jones, a stalwart in the financial services industry with over a century of history, is undergoing significant transformations driven by its policy shift allowing financial advisors to form teams. This change, initiated over 18 months ago, has yielded unexpected outcomes, one of which is a decline in the company’s branch locations by about 10% over a two-year period, as revealed by Penny Pennington, managing partner and head of Edward Jones.
According to Pennington, more than 1,600 Edward Jones advisors have opted to collaborate or share office space, a testament to the company’s commitment to providing advisors with greater autonomy and flexibility in managing their practices. This shift not only showcases the firm’s dedication to empowering its advisors but also serves as an avenue for aspiring advisors to enter the profession.
In addition to promoting collaboration among advisors, Edward Jones has been embracing technology advancements to enhance its service offerings. The firm has introduced new tools and upgraded existing ones to improve advisors’ ability to serve clients efficiently. For instance, MoneyGuide Pro was integrated for all advisors this year, with plans to implement Salesforce software firmwide by the first quarter of the following year.
Furthermore, Edward Jones advisors are increasingly acquiring professional credentials, such as the certified financial professional designation, to enhance their expertise and better serve clients. The number of advisors with this designation has seen a substantial increase, reflecting the company’s commitment to elevating the competency of its workforce.
Recognizing the evolving preferences of clients, Edward Jones has also granted some advisors discretion over client assets, aligning with clients’ desires for more streamlined and personalized service experiences. Pennington emphasizes the importance of adapting to clients’ changing needs and preferences in today’s landscape.
Despite these changes, Edward Jones remains rooted in its traditional values and practices. While teaming among advisors is on the rise, Pennington acknowledges that not all advisors will choose this path, and many may continue to operate independently from single locations. Moreover, the company is committed to preserving the personalized and intimate experience offered by its branch offices, distinguishing itself from the large centralized offices characteristic of wirehouse firms.
In summary, Edward Jones’ embrace of collaboration, technological innovation, and client-centric practices underscores its commitment to evolving with the times while staying true to its core values and client-focused approach.