Sam Turner, Head of Digital at ClientsFirst
First there was email. Then came social media. And then came… MiFID II?!
Changes to client communication are a hot topic for financial advice businesses, whether looked at through the prism of marketing, retention or legislation.
At the heart of the change sits, of course, the client. Client preference drove the change from hard copy letters to email. Technology – whether that is an email newsletter programme or something more advanced – allows you to keep up with these changing demands and preferences. But technology also drives changes in client preference and behaviour. In essence, advisers don’t need to wait for clients to demand the future; they can show it to them.
Can we learn from robo-advice?
You can see this happening now with robo advisers. Whatever your thoughts on robo-advice, robo advisers are growing in popularity because they are showing clients a different future. That says something in its own right. A certain demographic of clients wants what they offer. They want ease of use, automation, communication via phone apps and push notifications.
The full list of robo advice features is unlikely to be replicated by most advisers, just as the value of the service which advisers offer is unlikely to be replicated by the robo crowd.
But that doesn’t mean that the changing face of technology in advice should be ignored by advisers – far from it.
A list of common robo adviser positive attributes might include the following points; speed, ease of use, uncomplicated, cheap, clear.
Even the ‘big boys’ of advice can learn something from this. The average piece of Hargreaves Lansdown marketing material still looks like your average Gutenberg Bible.
Technology is driving change
The technology available to you may not be the same as that used by the venture-funded robo advisers, but it is catching up.
New entrants to the platform market (and some of the older ones) offer client messaging options, automated rebalancing and automated alert and risk messaging. Separate and complementary offerings are available when it comes to elements like electronic signatures and rebalancing for those who use a platform which doesn’t support messaging. The latest technology can automatically alert clients to their annual review meeting being due and available times in your diary. When the client selects one, the meeting appears in both of your calendars. The same software can automatically send clients relevant material based on their job role, industry, age, pages on your website they have visited, and more.
Don’t get left behind
Clients are unlikely to complain loudly or at any length about processes and communications from you which they consider to be outdated, slow and generally old. This is potentially because they have never been shown the alternative or never been given the opportunity to change their preferences. But at some point, someone will offer them that opportunity, whether it is their email provider, LinkedIn, you or even (whisper it) someone like the FCA.
That offer of change will drive their behaviour and influence expectations. It’s time for advisers to be at the forefront of that drive for change.
About Sam Turner
Sam Turner is Head of Digital at ClientsFirst, a marketing agency which specialises in working with financial services firms. www.clients-first.co.uk.
