In today’s world, we’re used to services like Amazon delivering things almost instantly and apps like Zillow making home searching easy. Just like these services set a high standard for quick and efficient help, financial advisors also need to meet these expectations. People expect things to be fast and easy, and as financial advisors, it’s important to focus on giving clients a smooth experience without getting bogged down in routine tasks. In this blog, we’ll explore how you can stand out in the competitive field of financial advising by providing a top-notch experience that’s fast and convenient for your clients.
Here are five ways to create a competitive advantage:
1) Invest in Technology
Modern investors are used to convenient digital experiences in their everyday lives, from grocery shopping to entertainment. They expect the same from their financial advisor, with digital tools that make it easy for them to manage their money and track progress toward their financial goals. Firms that offer strong digital tools, including a customer-facing dashboard and video calls, can provide leading service to clients and connect with them in simple, convenient ways.
Accenture found that 74% of CEOs say technology is a growth enabler or source of competitive advantage. When clients see advisors using new technology and creating a connected omnichannel experience, it shows that the firm pays attention to trends and new offerings.
2) Offer Holistic Advising
Instead of just getting advice on their finances, today’s investors increasingly want holistic advising, or being able to get tax, insurance, estate planning, and other services in one place. One survey found that 71% of millennials and 57% of all respondents would prefer to do most of their financial business at one institution that can bring together the specialists and services they need.
Firms can build a competitive advantage by bringing in other types of advisors, hiring financial advisors with unique backgrounds who are experts in a variety of areas, or partnering with other local advisors for streamlined, holistic service. Expanding your services can attract a wider client base.
3) Prioritize the Client Experience
Many advisors recommend similar products and accounts, but what really sets firms apart is their ability to deliver a high-quality, personalized client experience. In fact, two-thirds of Americans say a personalized financial plan is an important factor when considering a financial advisor. The top reason clients aren’t satisfied with their advisors is that their advice is too generic and not personalized to their situation.
To create a competitive advantage, make client experience a hallmark of your firm. Providing consistent service and building relationships with your clients can lead to more referrals and a strong reputation.
4) Find a Niche
While competition for general financial services may be steep, advisors and firms that can find a specialized niche can attract more clients. When potential clients know an advisor has experience working with someone like them, they are more likely to want to do business. Establishing your niche helps you hone in on a target area and become known for that specialty.
Your niche could be working primarily with clients of a certain age, such as preparing clients for retirement or helping young graduates enter the workforce. You could also specialize in certain products or advice, such as working with small business owners, immigrants, or young families.
5) Be a Subject Matter Expert
Becoming a subject matter expert is one of the best ways to build a competitive advantage. People want to work with a financial advisor who understands the industry and is knowledgeable and experienced. Clients want to work with a financial advisor they can trust and who they know will make educated, expert recommendations. That comes from establishing yourself as a subject matter expert. Investing and wealth management can be overwhelming for clients — teaching people and sharing valuable resources can help you stand out. One survey found that 22% of people are dissatisfied with their financial advice because it is too complex to follow. Simplify the process by sharing resources and teaching clients and community members through classes, articles, or community involvement.
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