The global changes brought about by the Covid-19 pandemic
have undoubtedly been disruptive to the economy. Business budgets and
operations as well as consumers’ personal finances have been affected by events
including months-long closures and widespread job losses. Even as we begin to
slowly emerge from the pandemic and rebuild the economy, lingering uncertainty
has many businesses and consumers on edge.
The impacts from the events of recent months mean both
business and personal financial clients are more dependent than ever on the
insights and expertise of financial specialists. In response, financial
advisors are expanding their services and expertise to better serve their
clients. What used to be “nice to have” offerings are now “must-haves” if a
financial firm is to compete.
So what areas do financial advisors need to have covered to
fully serve their clients and protect their interests? Below, 13 experts from
Forbes Finance Council share the knowledge and offerings they say clients will
be needing and expecting going forward.
1. A Well-Rounded Tech Stack
A tech stack that is digital, mobile, virtual and personal
is a must. Before the pandemic, these attributes were “nice to have”—now they
are “must-have.” As we return to normalcy, they will complement and level up
all of our engagements. - Neal Carlson, Forthright Family Wealth
2. Robust Security Practices
Having robust security policies and practices has gone from
“nice to have” to an absolute “must-have.” The days of physical signatures in
the financial world may be officially over; opening a traditional bank account
is the only thing I still have to physically sign for. Protecting financial
information is more critical today than ever before, and having the proper
security is a must. - Joseph Orseno, Tiltify
3. Proactive Communication
Proactive communication and expectation setting are
paramount to keeping a client on course during a volatile time in the equity
markets. It’s important to know that staying the course and sticking to a
long-term plan is essential to achieving your goals. This needs to be repeated
and repeated to clients before the next “big event” so they know “this time is
not different.” - Matthew Cuplin, Midwest Financial Group
4. Awareness Of Changing Legislation
Advisors must be aware of the always-changing legal landscape.
The negative impact clients may face if they don’t properly organize their
financial affairs can have dire consequences—for example, an existing spouse
not receiving an inheritance that inadvertently goes to an ex-spouse. - Mark
Paller, Paller Financial
5. Financial Health Checkups
Financial health checkups fall into the “must-have” column,
particularly today. New relationships typically start with a financial plan,
but few advisors provide a regular financial health checkup to their existing
clients. A regular “physical” of your financial health is crucial. - Sonya
Thadhani Mughal, Bailard, Inc.
6. Impact Investing Understanding
Financial advisors will see greater pressure to incorporate
specific impact investing values into clients’ portfolios. Investors are
increasingly interested in how companies have implemented best practices to
address business disruptions from environmental, social and governance issues.
- Jonathan Hudacko, Just Invest
7. Access To Alternative Strategies
Access to alternative investment strategies is now a
“must-have,” whether those strategies include private debt, real estate, or
hedging on indexes or concentrated stock positions. The markets continue to
move and change, and simply holding stocks and bonds is no longer an option. -
Gregory Kushner, Lido Advisors, LLC
8. Active, Custom Portfolios
Financial advisors who rely only on index funds were left
behind in 2020. The ability to remove at-risk companies and sectors from a
portfolio as the world changes is now an absolute requirement. Advisors who
weren’t able to partially shift to the obvious investment opportunity of remote
technology companies during the initial stages of the pandemic were asleep at
the wheel. - Evan Kirkpatrick, Wendell Charles Financial
9. Estate Planning
The pandemic has shown that life can be fragile and unexpected
events can happen. Financial advisors should consider incorporating more
detailed estate planning discussions with clients, even if they may not
ultimately be the ones who draft the plans. This can include discussions around
life insurance, estate taxes, planning techniques, organization of assets and
so on. - Kevin Dorwin, Bingham, Osborn and Scarborough LLC (B|O|S)
10. Digital Marketing
Digital marketing chops are essential. If you’re a financial
advisor, you should have a laid-out digital marketing strategy that involves a
mailing list, newsletter and strong social media presence. In the absence of
in-person networking opportunities, digital marketing is paramount, and you
need rock-solid content to stand out from the crowd. - Tyler Gallagher, Regal
Assets
11. Virtual Meetings
A webcam and a microphone have become essential to working
in financial services since the pandemic hit last year. If financial services
professionals cannot “meet” with their clients virtually and face-to-face
meetings are no longer an option, their businesses will die. When was the last
time you convinced someone to write a six-figure check after a phone call? This
is a relationship business. - Sheryl J. Moore, Wink, Inc.
12. A Comprehensive Digital Persona
A well-groomed digital persona (including a Web page, blog,
videoconferencing, podcasts and so on) is no longer a feature to appease or
impress the tech-savvy segment of one’s book. It is a must as pin codes replace
pinstripes in the post-Covid-19 world. - Alexey Bulankov, Mechanics Bank Wealth
Management
13. Regular Email Newsletter
As in-person networking and in-office meetings have
dissipated, it is important to keep clients, prospects and colleagues up to
date on their financial best interest. One way to accomplish this during these
times is through the use of a regular email newsletter. These personalized,
digital correspondences can bridge the gap, plant a seed and drive reminded
interest in your services. - Jeffrey Bartel, Hamptons Group, LLC
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