Clients are looking elsewhere for financial advice. Why? Here are 3 ways to retain and attract them

A graphic of a man running for the exit. A large hand holding a magnet stops him from running through the door.

By AdviceBridge

How confident are you about your firm’s ability to retain clients and attract new ones?

As trends change and new generations come into wealth, client retention could prove to be trickier than it sounds. Research presented in the 2021 EY Global Wealth Research Report found that 28% of high net worth (HNW) clients planned to change their wealth management provider in the next three years. 

What’s more, many of those who are planning to swap are considering fintech platforms rather than a human adviser. Indeed, according to a Deloitte report, US robo-advisers could be managing up to $7 trillion in assets by 2025. 

So, what are these HNW clients drawn to in the robo-advisers they’re considering, and how could you upgrade your firm’s online systems to compete? Read on to learn three ways you can make sure your firm stands out from the crowd to attract and retain HNW clients now and in the future.  

1. Educate and build relationships using financial literacy tools

Of the clients expecting to switch wealth managers over the coming years, millennials are the most likely to switch providers. You may not have many HNW clients in their mid-20s to their early 40s, but these early stage accumulators are your future target client. 

Gen X are also looking to switch. And they control the near and long-term future of your business. 

As such, education in financial literacy – something that a robo-adviser is unlikely to be able to provide – may be crucial to your future success. 

Helping these investors to understand and interpret the many terms and concepts that govern the world of wealth management is going to be crucial. What’s more, by helping them to understand the fundamental principles of wealth management, you could help them to decide whether a fintech platform or a firm such as yours is more suitable for their needs. 

If your firm can start to build relationships with prospects and existing clients by providing easily accessible online financial education, while demonstrating your firm’s digital capabilities, you could soon reap the rewards alongside your clients. 

To enable you to do this with ease, the AdviceBridge platform offers access to online tools and calculators that give prospects an insight into their financial future and see whether they could benefit from advice. This builds trust and positions you as a go-to expert for when they decide to take the next step. 

2. Create tailored services

Clients expect a greater range of tailored services than many firms can provide currently.

Many expect their wealth relationships to become less face-to-face but more personal in the future. Providing a high level of face-to-face meetings isn’t the same as receiving a tailored experience where clients can interact digitally, more quickly and easily, whilst also having the option of a face-to-face meeting where required. The gap in this nuance is starting to grow.

Research points to the fact that women make up a growing proportion of HNW clients, and yet the wealth management space is largely designed for men. To survive, advice firms will need to ensure that they offer services that are specifically tailored to meet the multi-faceted needs of this changing demographic over the coming years. 

Additionally, nearly half of clients want to consolidate all their financial activities in one place. It doesn’t matter what generational group people are in or whether they are male or female, people have become more exposed to the capabilities of technology and thus expect interaction to be easier. 

In fact, over half of clients would be willing to pay more for better, exclusive and more reliable digital services.

The AdviceBridge platform can analyse a client’s changing situation in seconds and make the appropriate recommendations instantly. 

And it doesn’t just need to be digital outputs but documents and reports. The reports include all the information you would typically provide in easy-to-understand language and feature call-out boxes offering further information to help clients feel supported and informed. 

3. Make it quick and easy for clients to obtain the answers to their questions

As more Gen X and Millennials inherit or create wealth, it’s becoming clear that convenience is one of their top priorities. These investors are digital natives who have grown up with next-day – or in some cases same-day – delivery of goods and are keen to see this level of convenience in all the services they use. And many Baby Boomers have a strong grasp of technology too, whether from the additional time they have after retirement or their children (and grandchildren) educating them on the benefits.

This is one area where robo-advisers may seem like the ideal way for these clients to manage their wealth. They can engage with these platforms from their own homes as they complete other tasks or simply relax on the sofa. Indeed, half of HNW individuals under the age of 40 would prefer to have 100% of their interactions with a wealth manager online than face-to-face. 

Be careful not to generalise though – it’s not just age that determines whether someone wants an online experience or face-to-face consultation. The preference can be influenced by big life events such as receiving an inheritance. When the circumstances feel overwhelming or significant, face-to-face advice has its place. 

This shows that there is a real appetite for more digital access to financial advice but there needs to be the option of speaking to a person as well. 

The AdviceBridge platform can enable your firm to offer this flexible approach that may appeal more to younger generations of investors. 

The dashboard allows clients to update their circumstances online at the touch of a button, so that you’ll be notified if a big life event is occurring for them. This allows you to react to those life events when more detailed advice is needed, but also gives clients the option to keep interactions online if they prefer. 

Get in touch

Robo-advisers and fintech platforms might be tempting some HNW clients away from traditional firms, but by implementing the right systems, you can keep your firm competitive. If you’d like to know more about how AdviceBridge can help you with this, please get in touch. 

Email, book a demo, or call us on 020 3925 3850.