Life, just like the financial markets, is a series of ups and downs. We go through various phases that impact our emotional, physical and financial well-being. While, for some of these we can be well-prepared, there are many others that catch us by surprise. If you are hoping to minimise the unexpected surprises to your financial health, then you should seek advice from a financial advisor and start your financial planning journey at the earliest.
Financial planners can hand-hold a client and guide them through the investment landscape. This is expected from all financial planners. However, in order to give optimal advice in the finest possible manner and build a relationship of trust, advisors need to positively surprise their clients by delivering the unexpected.
Some of the things that a financial advisor can deliver to exceed the client’s expectations are listed below:
Engage in the digital realm – now that we are two decades into the 21st century, the news that everything is moving to the digital realm should come as no surprise. Individuals are increasingly engaging with technology and using digital platforms to meet their needs ranging from buying groceries to investing with robo-advisors. Financial advisors too need to connect with their clients digitally and offer solutions that are tech enabled.
Tailored solutions – it is time that advisors truly walk the talk in terms of creating customised solutions for their clients. Every individual has unique circumstance that shapes his/her risk-return requirements. Rather than offer cookie cutter solutions that are based on some set formulae, advisors should become trusted partners to their clients. Advisors should make an attempt to get to know their clients more personally. This will enable them to better understand the clients’ needs and glean insights about their clients first hand.
Shun the complexity – a large portion of the financial industry is built on the assumption that finance is complex and that the average individual requires middle-men to make important financial decisions. The advisory business is built on the premise that the advisor knows more than the client. While this might be true, advisors can go a step further than advise to educate their clients about complex financial products. If the client knows more, it does not mean that he will no longer need the advisor. Instead, if the client knows more because of the advisor, then he will trust the advisor more which will lead to an enduring relationship.
Bridge the advice gap – for every individual, “advisor zaroori hai”. Unfortunately, not all individuals have access to a financial advisor or even understand the importance of a financial advisor. As a result, there is a large part of the population that needs financial advice but does not receive advice. This has created an advice gap. Financial advisors should reach out to a larger number of people and demonstrate the importance of financial planning and advisory.
This year, India will become the youngest country in the world with an average age of ~28 years. As a new generation of people start their financial planning journey, advisors can build strong relationships by providing them with more than what they expect.
