In a world where Amazon and Instagram know what consumers
want before they do, investors have come to expect an experience with their
advisers that is just as simple, intuitive and personalized. A recent
Broadridge survey of investors explored just how important personalization was
– especially for those on the younger side of the generational spectrum.
When asked what communications they most wanted from their
adviser, respondents cited four types of personalized information. After a
“comprehensive view of their accounts,” the next three underscored
personalization preferences that, in effect, invited financial advisers to
engage in deeper dialogues with them.
The second, “money-saving tips tailored for them” indicated
their defensiveness in coping with today’s uncertainties. The third preference
showed an interest in having advisers share “ideas for new investment vehicles
that could work for them.” The fourth preference for a “personalized analysis
of investing habits” was practically an open invitation for a financial
planning discussion.
To meet these new demands, advisers need to adapt their
processes in ways that allow them to focus on personalization, preferences and
online behavioral data to deliver the right recommendations and services at the
right time — and technology empowers them to do just that.
NO GOING BACK
Things are different after a pandemic. Fifty-one percent of
investors said they will have “fundamentally changed” how they will communicate
with their advisers after the current crisis is over.
For the adviser, customizing each client’s experience begins
with knowing what they are already doing online. When the market gets choppy,
advisers must know in advance how to contact each client the way they wish to
be reached, whether that’s by text, phone, email or app. Digital communication
builds trust between advisers and investors too. According to research from the
CFA Institute, nearly half of retail investors said they trust their advisers
more because of their increased use of technology.
However, while investors search for the tailored tips and
investment ideas they want, many advisers and wealth managers report that
they’re struggling to keep up. A Broadridge survey of advisers and wealth
managers detailed this shortfall: Since the beginning of the pandemic, 77% of
advisers reported losing business due to inadequate technology, while 51% said
they’re even thinking of leaving their current firm.
The challenges created by Covid-19 have only exacerbated
this digital divide. Without the technology tools to support client
relationships at a distance, many advisers say they are hampered by inadequate
means for communicating with or serving their clients.
A LOOK AHEAD
Today’s crisis provides a concentrated moment in which
digital leaders can find themselves delivering new, personalized solutions
ahead of their competition — even as new advice demands arise. A recent
Nationwide study pointed out that the pandemic has driven one in four American
investors to seek the help of an adviser for the first time ever. On the other
hand, digital delays have their consequences. It’s business-critical for wealth
managers to continuously improve their methods for acquiring and retaining
advisers and clients. As client demands for personalized advice increases,
firms must make sure to provide their advisers with the technology they need or
they may risk losing business — and advisers- to other firms.
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