A primer on how advisors can acquire NRI clients.
Acquiring NRI clients
In many ways NRIs represent the diversity in India, as they belong to various socio-economic strata. Today, NRIs belong to all classes – HNI, MNI and the unskilled labourer. There is a difference in the way an IFA deals with these classes of NRIs, as each of these classes have different investment objectives. Thus, advisors need to find their niche within this segment as it is important to work with clients whose needs and expectations are in line with your competence.
Nisreen Mamaji of Moneyworks Financial Advisors says, “Besides having spread across the globe, NRIs have wide diversity in income and are also engaged in different professions. So, one has to focus the set of NRIs that can be targeted and served more easily.”
Like any other clients, NRI clients too can be acquired through referrals. The best way to acquire clients is to build and grow a strong social pipeline. An IFA can be a part of events, conduct seminars and join communities to reach out to NRI clients.
Rajat Dhar, Managing Partner at Cogent Affiliate Network says, “Many NRIs are associated with NGOs. Hence, these organizations can also help in acquiring NRI clients. Since they attend social events and gatherings related to such causes or NGOs, an IFA can build connections by visiting such events and gatherings.”
Also, advisors can partner with peer group associations or attend meetings abroad to build networks. Networking is a long term investment which can yield fantastic returns. Networking isn’t about one-time meeting; it’s about bonding that is nurtured after several interactions with prospects.
Rajesh Chheda of Finance Factory suggests, “Financial advisors should look out for prospects who are looking for investing opportunities in Indian markets or NRIs wanting to settle in India.”
An IFA can also reach out to NRIs through social media. Nikhil Kothari of Etica Wealth Management says, “Blogging helps a lot. Through active blogging an IFA can share his knowledge and expertise which can be helpful in acquiring clients. Moreover, it helps in creating a strong web presence.”
Challenges
Advisors say that NRI clients expect taxation aspects of both the Indian and foreign markets to be taken care of. Moreover, each country has a different set of regulations for investments. For example; NRIs in the Middle East have no restrictions on where they could invest. On the other hand, USA has strict restrictions on where its residents can invest, even if the residents are not US passport holders. You also need to understand the tax implications of the region the NRI belongs to.
Communicating with clients
In the age of email and Skype, distance is not a barrier when it comes to keeping in touch with clients. Apart from email, one can use teleconferencing and webcast to interact with clients.
Advisors can start a website (if they don’t have one) and give online access to their portfolios with a login access. Many people prefer to do online research before paying for any product or service. Nisreen Mamaji of Moneyworks Financial Advisors says, “Websites play an important role which acts like an online brochure. It gives you an opportunity to showcase your work and skills. Many clients use online platform to check your services before contacting you.”
It is very important to have a strong web presence to attract clients, an informative website adds to the trust and credibility of the financial advisor. It acts as a platform through which advisors can showcase their services. Rajat Dhar, Managing Partner at Cogent Affiliate Network adds, “Technology plays an important role when it comes to dealing with NRIs. NRIs can be offered an online platform where they can easily have access to their portfolios.”
Advisors can make available important forms, portfolio details, product details which can be helpful to NRI clients on their websites. An online transaction facility can be another value add. According to Kevin Michael of Money & More, “A website should not only act as an informative source but should also facilitate online transactions. An IFA can tie up with a national distributor to create an online platform.”
While one can keep in touch with clients through email and Skype, advisors can personally meet their NRI clients at least once a year which can help strengthen their bond further.
Finally, be it NRI or local clients, advisory is not just about selling products but understanding client’s needs and educating them which in turn helps in building and retaining clients.
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