Hello Friends!
If there's one thing we can all agree on, it's that change is constant. It's not surprising then that today's investors expect a different experience from their financial team than the experience their parents got.
This week, we're exploring a handful of key differences between the preferred experience of those between 25 and 45, and how it's different from the traditional experience.
Digital Integration & Technology
The new experience demands a seamless digital experience. This reaches beyond mobile banking to include mobile access to portfolios, smart analytics, and online dashboards that aggregate everything in the client's financial world. Since the "covid years," this now includes seamless scheduling of meetings and virtual meetings, which tend to be more time efficient.
The traditional experience relied mostly on face-to-face meetings and phone calls, with less interaction with digital tools.
Tailored Advice
Today's clients, especially high-earners and high-net-worth clients, demand highly customized financial advise that considers their unique situations, goals, and values.
The traditional approach is more one-size-fits-all with standardized products to address needs, and less of an emphasis on tailoring advice to specific needs.
Proactive & Comprehensive Approach
Today's expectation is a holistic approach that integrates all aspects of one's financial world. This includes everything from proactive cash management to tax planning, investments, family planning, and estate management. What's more is there's increasing demand for the financial advisor to coordinate the activity of various other professionals on the client's behalf.
The traditional experience is often siloed or compartmentalized, with different professionals for the various needs. Planning and activity often occurs with little or no coordination between the different professionals.
Education & Empowerment
With little financial education provided in the common curriculum, it's no surprise many clients today are asking for financial education and to be informed about options and decisions. Clients demand transparency, understanding, and a fiduciary advisory relationships.
The traditional experience clients tended to be more passive in the advisor-client relationship and accepting of the "suitability standard."
Social Responsibility & Impact Investing
Many investors today are increasingly likely to prioritize investments that align with their values on sustainability, corporate governance, and social impact.
The traditional investment approach was focused on returns with often little regard for the investment’s impact or alignment with client values.
Flexibility & Global Outlook
Today’s investors, especially high-earners, are looking for a more global perspective, seeking investment opportunities around the globe. They’re also more likely to spend time living abroad, creating a need for advisors who can provide international tax planning and navigate international markets.
This largely contrasts with the previous focus on local and domestic investment opportunities.
Dynamic & Responsive Service:
In today’s fast-paced and information-rich world, clients expect quick responses and coordinated adjustments as the financial markets and/or their personal situations change. Modern advisors plan around quarterly or semi-annual reviews, and expect to communicate on a somewhat regular basis with their clients.
The traditional advisory experience is characterized by less frequent, more routine interactions.
Privacy & Security
While privacy has always been important, the mechanisms and expectations for protecting financial information have evolved significantly with the rise of digital solutions and increased awareness of cyber threats. Requests by clients for education on how to protect their financial information, as well as how the advisor protects their information online, is becoming more common.
Hope you enjoyed this week's insights! Please reply back with any questions or thoughts, I'd love to hear them!
Have a great close to your week!
Garrett
8 February 2024
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