Page 42 - Investment Advisor - December 2021

While advisors can show clients their goals, other financial accounts and key Firms that train advisors to work differ-
financial plans or investment reports, a details concerning their family history ently with clients will have a substantial
key component of their value is being and personal relationships. The most competitive advantage in years to come.
able to articulate what they do behind common information consumers hide That training should cover how to
the scenes for the client when not in is outside financial accounts; 1 in 4 men effectively connect and communicate
the meeting. and 1 in 6 women are holding something virtually. The Zoom dynamic is very
back from their advisor. different.
3. GROWING LACK OF TRUST And this makes sense. We also found Advisors on video calls can’t just pre-
Our survey found that one thing making that consumers with between $250,000 tend they’re sitting in an office with
consumers most unhappy is a belief that and $6 million of assets now prefer their client. Building interpersonal com-
advisors are making judgments on their somewhat of a DIY approach, where munications techniques for a virtual
personal decisions. Twenty-one percent they have more discretion over their environment, or for that matter how to
of men and 19% of women are lack- accounts. Of course, if they aren’t get- broach questions about clients’ feelings,
ing trust. In other words, 1-in-5 people ting the timely response they need from goals and changing values, is becoming
don’t trust their advisors and the even more critical to the success
financial services industry. But I do see a clear of advisory firms.
We know that over the past The theme of capacity also is
year many consumers have message here for wealth key. Advisors must have slack in
taken an interest in cryptocur- their weekly schedules so that they
rency and private investments management organization have ample time for impromptu
or left stable jobs in search of inquiries. Communication that
greener pastures. Some advisors leaders, and it has to do anchors and deepens relation-
may not support these kinds of ships takes time, and it’s not pos-
decisions, and/or loss of income with human capital. Firms sible if an advisor is juggling too
to an already determined finan- that train advisors to work many clients.
cial plan. But along with slow Advisors should be able to
response times, advisors’ judg- differently with clients skillfully draw clients out, with-
mental response gives consumers out judgment, about whether
another reason to hide informa- will have a substantial and why they’ve added outside
tion and to question whether the accounts, and about how and why
industry is trustworthy. competitive advantage in their values and goals might be
It’s not that consumers don’t changing. They should take time
value advisors’ technical knowl- years to come. to explain all the “backstage”
edge — their ability to manage work that goes into investment
assets and run financial plans. But these their advisor, and they don’t understand advice, financial planning and answering
selling points are not enough. the value of what he or she delivers, and inquiries. Doing so can help to shore up
The information gathered in our sur- further, feel they cannot trust the finan- consumers’ perceptions of their value.
vey suggests that consumers want and cial services industry, it’s to be expected Our survey findings support what
need more time to discuss their goals that they’d start to hide things from many of us have observed in recent
and their changing values — and a per- their advisor. years: Financial advice is shifting from
son to hear them out — whether they act being mainly about numbers to being
upon them or not. They want the con- GAINING A COMPETITIVE mainly about communication. Firms
versations to be judgment-free. Also, 1 in ADVANTAGE that embrace communication training
4 want to have the discussions virtually It will take time to sharpen up the pic- and allow their advisors the bandwidth
rather than in the advisor’s office. ture of consumers’ changing desires, they need to have meaningful discus-
expectations and behaviors. It’s con- sions with clients will have an edge.
4. HIDING ASSETS AND OTHER ceivable that the changes will fade over That certainly will hold true in the next
RELEVANT INFORMATION time along with the pandemic. Or they year, and it may very well be true for the
Findings also were remarkable when could mark the start of a durable, long- next decade.
we asked survey respondents what term trend.
information they’re holding back from But I do see a clear message here for Angie Herbers is an independent consultant to
their advisors. Consumers reported that wealth management organization lead- the advisory industry. She can be reached at Adobe Stock
they’ve failed to discuss their authentic ers, and it has to do with human capital. [email protected].

40 INVESTMENT ADVISOR DECEMBER 2021 | ThinkAdvisor.com