A landscape of disruption
Amid these diverging views, established players in the sector also must confront shifting client demographics and new fintech entrants, which are upending the traditional model of asset allocation advice. The result: pricing premiums are eroding while better and faster service is increasingly expected of providers.
What should be done? Investment in the client experience can help to bridge the divides outlined above. Research shows that clients want more interactions — from account opening to the provision of advice — through digital channels, with less service and transactional activities performed at brick-and-mortar branches.
But individual expectations of performance, trust and engagement – the core elements of client experience – are incredibly diverse. Firms that dare to challenge some of the traditional norms while remaining true to their core value proposition will be best suited to retain and grow their client bases.
Digital service, with a human touch
Given changing client expectations and the inevitability of more digital engagements, it is crucial to define an approach that offers clients a balance between face-to-face and digital interactions or a hybrid of the two. This will have the added benefit of enabling advisors to focus on higher-touch interactions and activities such as goals discussions with clients.
Humans are good at conveying genuine emotion and using their creativity to stray from a set script. In this role, they will need to spend more time calming jittery nerves in choppy markets, helping clients drop bad spending habits and increase savings, providing assistance to get them through a divorce and offering the tools to achieve life and financial goals. In essence, the role of the financial advisor may become more like a financial therapist.
The video below explores how wealth advisors can advance in the digital age, forge stronger relationships and maintain the bond of trust so essential to successful wealth and asset management.