New tools in financial technology are helping advisors and clients improve their ability to communicate with each other.
And today more than ever, potential clients are moving beyond soliciting referrals to advisors; they’re using online resources and social media to reach out directly. A recent study found that 65% of clients use social media to research investment advisors, while a whopping 86% use social networks in their decision-making process.
Increasingly, clients are taking on a collaborative role in working with advisors. Social media is combining with technology to boost investor expectations in terms of transparency, accessibility and efficiency. These new resources make it possible for clients to exchange ideas rather than simply receive information.
Accenture Research recently surveyed advisors and found that 88% of respondents find their clients more knowledgeable about the investing process and investment products than they were five years ago. Of the respondents, 49% also found that clients are asking for research and information beyond the scope of what they typically provide.
The cleverest advisors are capitalizing on this trend. They’re connected with clients through online dashboards, which allow clients to carry out common tasks. It a client uses the dashboard to update goals or set up a new savings plan, the advisor receives notification and can contact the client to discuss the changes. As clients become better informed and take more responsibility for their financial planning, advisors can connect with them on a deeper strategic level.
Consequently, advisors today need to consider the types of technology they offer and how their technology influences the client experience. In order to communicate with clients on their terms and deliver the type of service increasingly in demand, advisors need to offer the most up-to-date technology. In fact, a CapGemini study recently found that 64% of affluent investors anticipate that their financial management relationships will be digital in the future. Moreover, 65% said they would end their relationship if their advisor did not provide a technology-integrated experience.
In an increasingly digital environment, how do you manage the client relationship? First of all, it’s vital to provide multiple points of contact. While you may feel that social media is not professional, clients demand more channels of communication. Like it or not, social media is one of them. Moreover, clients are looking for more casual and real-time ways of communicating, such as instant messaging, video chatting and tweeting.
For more on what clients are looking for in terms of technology, please see
Technology’s Impact on the Client Experience | Wealth Management