SIFMA Projects the Future of Investment Advice

Based on a recent investor survey, the Securities Industry and Financial Markets Association ("SIFMA") concluded that shifting investor expectations and rapid technological change are driving the investment industry toward hybrid business models that combine human trust with digital innovation.

In the 2025 Voice of Investor Satisfaction, Trust and Advocacy survey, SIFMA used survey data from across multiple demographics to evaluate current levels of trust and satisfaction, identify emerging generational divides, and propose strategies for firms to strengthen client relationships through hybrid engagement. SIFMA said that the investment industry must adapt its business models to meet the needs of a new generation of investors. 

SIFMA highlighted the following findings:

• High Overall Satisfaction and Trust. SIFMA found that investor confidence in the industry remains strong, with eight in ten investors saying firms meet their needs and seven in ten trusting them to act with integrity. The association reported that advisor-supported clients—whether traditional or hybrid—show higher trust (78%) and satisfaction (90%) than self-directed investors (61% and 77%).
• Generational Divide and Shifting Priorities. SIFMA identified a widening generational divide as the $105 trillion "great wealth transfer" unfolds. The association found that younger investors, especially Gen Z, value transparency 4.5 times more and digital capabilities 7 times more than Baby Boomers, and are more likely to prefer self-directed investing and switch firms for better digital experiences
• The Rise of the Hybrid Model. SIFMA highlighted the hybrid model—combining digital convenience with human trust— is the future of investment advice. The association reported that about 30% of investors already use hybrid approaches, which deliver higher satisfaction and trust while bridging the generational divide.
• Evolving Role of the Advisor. SIFMA described the emergence of a "next generation" advisor who blends market expertise with technological fluency. The association said these advisors guide clients through complex markets, use AI to deliver personalized insights, and expand fiduciary awareness to address new risks.
• Recommendations for Firms. SIFMA urged firms to adapt their strategies and infrastructures to support a hybrid future. SIFMA recommended that firms (i) reshape business models to accommodate hybrid engagement, (ii) invest in digital platforms that deliver customized, seamless experiences, (iii) reskill existing advisors and recruit talent with both market and technology expertise, and (iv) update risk and compliance frameworks to govern emerging products, technologies, and AI-driven tools.