A recent CFA global investor study revealed that clients consider ‘Ethical conduct’ as one of the top factors while choosing an investment manager. Establishing trust and demonstrating ethical behaviour is the key to acquiring clients, financial planners must reinforce this trust as the relationship matures in order to retain the client.
Dr. Subhash Chandra Goel, Chairman, Essel Group seconds this view and has shared with Cafemutual the three tips for financial intermediaries to grow business. He spoke to us on the sidelines of an event to announce the launch of Essel Mutual Fund.
Here is what he had to say.
Honesty wins
Honesty and integrity are the pillars of a successful financial advisory business. The intent of the advisor should be visible. Advisors should not pitch products to clients. Products are commodities. What clients are actually seeking is “guidance and insight.” A more compelling way to talk to a client is, “Let’s discuss a plan to meet your priorities.”
Respect your clients
Advisors should not discuss potentially controversial topics such as religion or politics. It is important to respect boundaries and avoid getting involved into personal issues (other than finances). Instead, you should respect their views and value their opinions.
Establish trust
Establishing your clients trust should be your goal. A trusted advisor is someone who gives high-level professional advice, like a doctor, lawyer, or psychiatrist. When you are at this level, the client knows that you are putting his/her interests first.
