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Written by: Souki Fournier
The 2020 financial climate may have been the most tumultuous of its decade. However, one thing is sure, demand for wealth management continues to grow. Today’s investors are looking for a comprehensive approach from financial institutions that would guide them forward in this new normal.
The truth is, even in the middle of this pandemic-induced uncertainty and market volatility, executive wealth management decisions were still being made. If you believe that your investors may not see value in wealth management, here’s why they should.
Financial Institution Can Adopt the Model That Fits
While you might think that the biggest struggle is to have a breakthrough with investors, and enrolling them in your financial planning systems, the real question is where do you take it from there?
As a financial institution, you have the ability to design your systems and incorporate wealth management components into your practice. Which makes more sense for your investors as they tend to seek out a more holistic approach.
You see, investors are looking to discuss their entire financial vision with their advisors. Their short term goal is obviously to make smart decisions and see a substantial return on their investment. Their ultimate goal however is none other than prosperity and financial wellness.
Investors Are Looking for a Financial Wellness Roadmap
The financial bigger picture has never been more relevant. The pandemic-induced market uncertainty has shaken investors’ confidence in their portfolios and challenged all their strategies. The type of financial institutions they are looking to work with are those able to offer them some clarity and insight into their financial wellness roadmap.
Whilst the unpredictability of the stock market can challenge that concept, it’s all about the relationship your advisors foster with their clients. Here at DNA Behavior we believe that advisors should constantly engage their investors in discussions relevant to them, or risk losing them.
Wealth Management also Means Behavior Management
You might be asking yourself is it our role to help investors get the maximum profit? Or to manage their behavior?
We believe that wealth management and financial planning risks are at the sum of human behavior (investors and advisors) and market risks. Our whole Financial DNA program for investors and advisors has been predicated on this. Whilst the market itself cannot be managed by an investor, their reaction to it can be. Which comes back to human behavior management.
75% or more of your role is to save investors from themselves by helping manage their behavior. This involves educating, guiding, coaching and empowering them. What we call “Wealth Mentoring”.
By adopting this approach you will be helping your investors obtain superior returns which far outweigh any level of fees they are being charged. The reality is that the key to successful investment is managing behavior. Wealth mentoring has the ability of transforming the investor-experience and enhance value.