Financial advisors need to modernize their practices to remain relevant amid evolving technology and changing client expectations, according to two executives with Toronto-based Ticoon Technology Inc. who spoke at the Independent Financial Brokers of Canada’s annual spring summit in Toronto on Tuesday.
Specifically, as clients become more comfortable communicating and conducting transactions online, they expect their financial services providers to facilitate this type of online interaction, says Gil Quesnelle, director of business development with Ticoon.
And given the growing number of robo-advisors and direct to consumer online distribution channels emerging, the traditional distribution channel is facing pressure to keep up with these changing expectations and find new ways to compete, Quesnelle added.
“Technology has changed the way goods and services are being sold,” he said. “If you’re not getting online, you’re not going to be able to engage your clients … and there are other competitors out there that are fighting for that client’s wallet.”
Added Quesnelle: “It’s time, as advisors, to get ready and start future-proofing your business.”
A modern financial advisory practice should incorporate technology in ways that make it more convenient for clients to work with you, said Zainab Sheikh, strategic account manager with Ticoon.
For example, advisors should embrace mobile technology in client meetings, she said, in order to provide clients with a consistent experience regardless of whether you’re meeting with them in your office or at their kitchen table.
In addition, Sheikh said advisors should be willing to communicate through whichever channel that clients prefer. Although face-to-face meetings, phone calls and emails will likely continue to be the primary communication channels for advisors, she said younger clients, in particular, are demanding interaction through new channels such as text messaging and social media.
“For the advisor of the future, simply sending a birthday card is just not enough,” Shiekh said. “[Clients] appreciate other forms of communication.”
The convenience of doing business from the comfort of a client’s home, at any time of day, is part of the appeal of robo-advisors and other digital channels, Quesnelle and Sheikh. However, they noted that advisors still have several important advantages over these emerging digital entities, including strong personal relationships.
“No one knows your client better than you do,” Quesnelle said. “You still have the advantage over [the competition].”
As clients are presented with a growing number of convenient online alternative ways of doing business, however, advisors need to seize the advantage they have by building even deeper relationships with clients, he said: “You need to get in front of your clients more.”
It’s important to clearly articulate your value proposition and demonstrate the variety of ways in which you can help clients, Sheikh added. In addition, advisors should personalize the client experience as much as possible.
“Be personal to them,” she said. “Be their friend, as well as their [advisor]. You’re someone they know, you’re not just approaching them to earn a few bucks.”