Offering clients financial guidance from afar comes with communication challenges. However, tapping into the best tools available can help financial advisors who work remotely connect with clients no matter how far away they are. Many of these tools work for in-person and virtual meetings, allowing customers to stay in the loop and FAs to gather crucial data to help clients make the most of their money.
These five tools are crucial to success for FAs looking to up their game and develop better customer relationships.
1. CRM Software
Customer relationship management (CRM) may be the most important thing financial advisors can use to retain clients and gain referrals. The happier customers are, the more likely they’ll sing the praises of their FA and drive business growth. Keeping customers engaged is vital to a successful business, especially in a forward-facing model. Success and CRM are so closely intertwined that researchers have studied the impact.
In a report published in the International Journal of Engineering Research and Development, financial analysts looked at companies that improved their customer relationships through CRM and AI-based tools. One health and wellness company increased customer satisfaction by 30% by focusing on improving CRM.
FAs should use CRM software to keep track of client goals and reach out when they haven’t heard from their customer in a while. Even small, regular reminders can be automated.
2. Communication Tools
Today’s savvy savers expect the people they hire to respond rapidly and in their desired format. Younger investors may not want to meet face-to-face or speak on the phone. Tapping into the power of various communication tools opens the door to new sets of audiences needing money advice.
Some of the tools FAs should consider include:
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Email newsletter providers with built-in SMS messaging
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AI chatbots to answer repetitive questions and free up the advisor’s time
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Social media messaging
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Video conferencing for brainstorming sessions
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Mobile devices for taking calls on-the-go
The tools each advisor uses may vary, but offering multiple ways for leads to get in touch can spur client base growth and engagement.
3. Cybersecurity Protections
The number of cybersecurity incidents is on the rise. Since the financial industry handles records and personal information, keeping clients safe is of the utmost importance. Around 23% of organizations reported increased cybersecurity incidents after remote work began during the COVID-19 pandemic, and some organizations estimate incidents have doubled. FAS must tap into powerful antivirus software and shore up databases with firewalls.
Financial experts should add control centers to oversee all cyber interactions with customers. Investing in IT services to frequently check for weaknesses is also worthwhile in protecting sensitive data.
4. Financial Planning
The biggest part of an FA’s job is ensuring clients plan appropriately to maximize their funds. Software that runs reports is a great place to start. AI also allows advisors to suggest the best course of action for particular personal circumstances.
How someone invests if they have children going to college soon may differ from where a person with no dependents puts their money. Tapping into the power of machine learning and massive shared data can increase the business intelligence factor and set FAs apart from their competition.
5. Portfolio Management and Storage
Investing in a cloud-based file storage system allows FAs to grab data wherever and whenever they meet with a client. Many advisors operate as freelancers and may travel to a person’s home or meet them at a public establishment.
Taping into files from anywhere is an advantage for remote work. Advances in machine learning allow people to gather data in a central cloud-based location and generate valuable reports that demonstrate authority and transparency to customers.
At the same time, FAs and clients should apply strict security principles, as approximately 44% of people have experienced some type of data breach and may be wary of digital record keeping. Put protocols in place to protect information while keeping the system accessible to those who’ve been vetted.
The Significance of Tech Tools in Financial Advisory Work
Most clients want to know their FA has a handle on the markets and their money. Utilizing AI and current software allows advisors to answer questions quickly and accurately. People will be likelier to continue with the company’s services and recommend their family and friends become patrons, too.
Related: Networking Strategies for Financial Advisors to Expand Your Client Base