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Written by: Rosa Atkinson
As we continue to put the COVID-19 pandemic behind us and push forward in this post-pandemic world, the wealth management industry would be doing itself a disservice to treat the pandemic as a one-off event. There will always be another crisis looming over the horizon, whether it’s another pandemic, natural disaster, social upheaval or transition of power between governments. Even events as routine as a presidential election can have far-reaching consequences for financial markets and, as a result, advisory firms.
To thrive in uncertain times, firms need to be able to consistently deliver value to their clients even when their investments aren’t growing at their expected rates. By making plans today and creating a proper business strategy to navigate times of uncertainty, firms can continue to prosper regardless of the future challenges they may face.
Here are four key strategies wealth management firms can use to stay ahead of the curve:
1. Embrace Change
The COVID-19 pandemic accelerated the adoption of technology and digital solutions in the wealth management industry. Financial advisors need to continue embracing changes and advancements in technology to streamline operations, enhance client experiences and deliver personalized services. With remote work becoming the new normal, financial advisors can utilize various digital communication tools such as video conferencing, messaging apps and email to stay connected with clients.
Virtual client meetings have become a common practice, allowing advisors to engage with clients and provide advice and guidance regardless of physical location. Digital tools also enable online document signing, eliminating the need for physical signatures and paperwork. This not only saves time but also enhances convenience for both advisors and clients, making the process smoother and more efficient. Furthermore, technology can also facilitate portfolio tracking and analysis. By leveraging digital portfolio management tools, financial advisors can efficiently monitor and analyze client portfolios in real-time, providing insights and recommendations to optimize investment strategies. Welcoming technology can help financial advisors stay connected with clients, offer convenient services and stay competitive in the rapidly changing landscape of wealth management.
2. Enhance Client Relationships
At times, financial advisors can be guilty of losing that personal touch when reaching out to clients. Relationships built around irregular phone calls and annual portfolio reviews don’t give advisors many opportunities to get to know their clients. Creating a positive client experience can be a major differentiator for all organizations, including advisory firms. To deliver a better experience, firms should consider more frequent, personalized communication with clients. This could include regular phone or video calls, targeted newsletters or even personalized gifts. In addition, by leveraging CRM technology, advisors can collect and store important client data, allowing them to better understand their clients and tailor their communications accordingly. This deeper level of understanding can lead to stickier relationships, where clients are less likely to leave the advisor.
3. Expand Value Proposition
Organizations often fall back on what they do best when faced with times of uncertainty. That means reinvesting in services that have historically delivered the most revenue. Although it’s always good practice to bolster your firm’s strengths, it’s just as important to plan for the future and look for opportunities to expand service offerings to better meet the needs of today’s clients.
How can you deliver real value to your clients? The answer is by providing services that deliver long-term value regardless of how today’s markets perform. Diversifying service offerings can help financial advisors differentiate themselves and provide holistic solutions to meet clients’ evolving needs. For example, financial advisors can provide comprehensive financial planning services that encompass retirement planning, education planning, budgeting and cash flow management. By offering a wide range of services, financial advisors can add value, deepen client relationships, and become a trusted resource for their clients’ financial well-being.
4. Leverage Technology for Enhanced Wealth Management
In the fast-paced world of wealth management, staying ahead of market volatility and providing sound financial advice to clients can be challenging. However, firms can tap into the power of the latest technology to overcome these obstacles and deliver better financial advice to every single client.
For example, leveraging CRMs to consolidate data from various sources, such as portfolio management and financial planning tools can provide advisors with a centralized view of critical information. This enables advisors to make informed decisions and offer sound financial guidance to clients, particularly during uncertain economic conditions. Automation of administrative tasks, such as opening new accounts, moving money and updating contact information in the CRM, can free up advisors’ time to work on high-value activities that will enhance the client experience.
Furthermore, technology can facilitate collaboration among advisors through digital channels and platforms. Real-time communication, shared insights, and collaborative tools enable advisors to work together seamlessly, leveraging each other’s expertise and providing the best possible solutions to clients. This not only enhances collaboration but also fosters a culture of continuous learning and improvement within the firm.
Thriving in Today’s Challenging Environment
By implementing these strategies, financial advisors can position themselves as trusted partners to their clients and achieve long-term success in the ever-changing world of wealth management. To learn more about these strategies and gain further insights, be sure to download our ebook “How to Thrive Under Difficult Conditions and Uncertainty” to gain the knowledge and tools to thrive in today’s challenging environment.