Business Development Common mistakes advisors make with clients

Common mistakes advisors make with clients

Read on to understand the mistakes that financial advisors should avoid when dealing with clients.
Priyaa Venkataraman Mar 20, 2017

We all make mistakes. It’s human nature. But there are some mistakes that financial advisors can easily avoid making. Doing so will help to improve and increase the size of their business. Reputation is a key in the financial advisory business, so following some of these tips can improve your reputation.

  • Stop talking

IFAs generally forget that the more they listen, the better they find out what exactly the client’s needs are and serve them accordingly. “Encourage your clients to ask questions and listen carefully to their concerns. I prefer asking open ended questions that helps them to give me some relevant information, so that I am able to serve them,” says a Mumbai based IFA Priyesh Sampat.

  • Selling products

Often IFAs assume they should first begin the conversation by talking about products. “Make sure you don’t get so caught up in making a sale that you lose sight of your real purpose. As an IFA, I do my best in helping my client plan for his/her future rather than selling many products,” says Priyesh Sampat.

  • Omitting information

Often advisors do not intimate certain details to their clients thinking that their clients might unnecessarily panic.  Amit Trivedi, Karmayog Academy feels that it should be the other way.

“When investors find out, you have withheld information from him, no matter what the reason he will lose trust in you. Instead of omitting the information that might cause panic, try and explain why you feel that this is only a temporary setback,” believes Amit Trivedi.

  • Ignoring the spouse

Advisors often meet only with the client. Mumbai based RIA Suresh Sadagopan founder Ladder7 however feels that it is wiser to include the spouse in such meetings. He feels that this removes the possibility of getting a unilateral view on the family’s financial needs and paves way for better client retention.

“I make sure that I talk with both the husband and wife even if the spouse may seem uninterested initially, they often give a fresh perspective to the financial plan. Also by meeting with both the partners, I get a holistic view of the family’s needs. In many cases, women have better inputs in the finances of the family,” he observes.

Hari Om · 1 year ago
Well written. Thanks.
dhole praveen kumar · 11 months ago
Very good information it will help to handle the client and it may be possible to retain clients and expand the bussiness
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