In a world that’s rapidly changing and becoming more
uncertain than ever, the financial advisory industry has a great opportunity to
become a beacon of trust for investors by helping them navigate through
difficult life and financial decisions.
The Covid-19 pandemic, combined with the social and economic
shifts over the past few years, has impacted every aspect of life and shifted
consumers’ expectations of business. In fact, businesses are now more trusted
than the government, and there is a new mandate for business leaders to take
action on critical societal issues, according to the recent Edelman trust
survey.
Further, the pandemic led to a serious evaluation of life
priorities, causing many to change careers, relocate, leave the corporate life
altogether or opt for early retirement.
In many respects, these critical life changes, combined with
increased uncertainty and volatility in the economic environment, have fueled a
renewed need for financial advice.
Business is booming for financial advisors, as new clients
pour in, seeking not just financial advice but also a trusted advisor on
critical life decisions. The opportunity for the financial services industry to
regain the trust lost during the financial crisis and establish the financial
advice profession as both a valued source of information and guidance for
investors, as well as a career of choice for future generations, has never been
greater.
Yet capitalizing on this opportunity to build long-term
trust will require firms taking deliberate steps toward deepening client
relationships now to help guide them through the most critical life decisions
and help them build financially secure futures.
Here are five things advisory firms can do now to achieve
that:
Offer more than financial advice. Wealth management
is no longer just about finances; it is about helping clients make sound life
decisions — especially right now, with millions changing jobs during what’s
becoming known as the “Great Resignation.” In many ways, advisors need to act
as life coaches, guiding clients through critical decisions in life as they
navigate a highly complex world. We are increasingly seeing advisors
considering adding psychologists or life coaches to their staff to help clients
make these difficult choices. By being able to talk more than dollars and
cents, advisors not only enhance their value, but also demonstrate that they
truly care about clients.
Build multi-generational relationships. To retain
business for the long-term, advisors should broaden their relationships beyond
the main client. Consider planning and engaging in family meetings to help
achieve even greater success with the entire family, particularly the next
generation of investors and potential clients. By focusing on the ongoing
dynamics of all members of a client’s inner circle, advisors can create
actionable and effective roadmaps for wealth management. Building these relationships
is all the more possible now given that many young adults are living at home
with their parents.
Communicate, communicate, communicate. It is
critically important to be visible to clients and prospects with the right
message at the right time. Successful advisors take an omni-channel approach
using both traditional and digital channels to communicate with clients.
Regular check-in emails and occasional texts with useful information, as well
as ongoing social media engagement to meet clients where they are and better
understand their concerns and lifestyles, are all critical in delivering more
targeted and more meaningful advice.
Become a destination for the full wealth journey.
Advisors should offer solutions designed to meet client needs at every stage of
life. Help early stage investors who are starting off careers or have recently
changed career paths by leveraging digital tools, free budgeting and
benchmarking solutions so you can build long-term relationships and be there
with them all along the wealth journey. For wealthy clients, offer solutions to
help them protect and transfer wealth by providing access to other business
specialists in your “orbit of expertise.”
Be a client advocate. Advisors should take every day
as an opportunity to demonstrate to clients that they are always watching out
for their interests. For advisors working in a fiduciary capacity, this may
seem like an obvious point. However, your legal structure means little to
clients unless they feel that you care for their well-being. Ask your clients
the extra questions, get to know them inside out, understand their concerns
about life, family and careers, and be their best advocate through their entire
life journey.
And perhaps most important, remember that trust takes years
to build and seconds to break. Treat every client relationship with the care,
respect and attention it deserves: Every. Single. Day.
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