For many investors, a striking aspect of their first meeting with their adviser begins by walking into a high-rise office building. Revolving doors open to marble floors, leading to rows of elevators riding smoothly to a floor appointed with wood paneling and original artwork. For many customers, the opulence of the facilities of a full-service financial services firm represents an important layer of subtle communication, "My adviser must work at a prestigious firm, otherwise how could they afford all that?"
But is that what clients really want? or need?
For people not familiar with working in a high-rise building, the experience of visiting a full-service financial services firm can seem surreal. The prestigious and well-appointed offices may offer your client assurances of your success, but over time it also may serve as a warning. Clients know what they pay, and they see how it’s spent, which asks an important question: Is there a point when the prestigious office begins to undermine the trust of a relationship? If a client says “I just don’t think you understand my circumstances”, ask yourself whether it’s your circumstances that they find difficult to understand.
After 20 years of helping locate and build branches for independent advisers, it's clear one thing most clients want - convenience. The desire to meet with advisers face-to-face is often hindered by the reality of a long drive, difficult traffic, and inconvenient parking. For advisers, face-to-face contact is crucial, especially in evaluating the needs of aging clients, who may avoid large office towers for safety reasons - to the detriment of their financial advice.
Independent advisers have traditionally worked in convenient locations, closer to their clients with included free parking. For clients, the location can be ideal – but independence also comes with limitations. Independent financial advisers generally offer only as much service as they can personally support – for them, “Independence” can also mean “free to fail on your own”.
In order to meet the increasing needs of today’s clients, advisers need to evolve. Advisers need access to the resources of a large firm or family office, with the flexibility and accessibility of an independent.
As an industry, the times call for re-innovation of previous (pre-COVID) models of business in order to grow in this new lifestyle of a post-pandemic world. Embracing a virtually integrated business model has proven beneficial thus far. The question of "what is virtualization for this industry and in-turn, clients," is an important one to explore.
With any sense of normalcy cast aside, the financial services industry had to find a new "normal", if even temporarily. For most advisers, the necessity of working at home was a new experience - one that offered considerable challenges… but also advantages. For advisers willing to make the leap to virtual meetings, video calls offer more convenient face-to-face interaction with clients; which is huge when it comes to creating that trusting relationship with your client that had previously come from in-person meetings.
The COVID-19 pandemic has caused the world to reevaluate nearly everything related to our lives. While advisers became more creative in their business practice, clients had the unplanned occasion to re-examine their circumstances. Are they happy with their current life? Do they want to explore a new passion? Launch a business plan that’s been on the bench? Decide they want to retire early?
If you find that the answers have changed substantially from the past, you should ask yourself one more important question: Did your client change, or did you? On one hand, your client's needs may have evolved with the pandemic. On the other, it's possible your client relationship has evolved as a result of the new "normal" for client communication.
Depending on the answer, it might be time to consider making that new "normal" permanent.