5 Ways Fintech Strengthens Advisor and Client Engagement

by | Apr 4, 2022

By Claudine Martin, VP Head of Marketing, CircleBlack

Wealth management has been facing fiercer competition, more regulation, and shrinking commission margins since the financial crisis of 2007. In the present, advisors must acquire more clients to increase AUM and then keep those clients happy, so they don’t leave. 

How can advisors quickly increase their book, manage operations, and have more time for clients? 

By using cost-efficient business strategies delivered through FinTech applications. FinTech apps apply a maximum level of standardization to specific services that advisors offer, one of them being client engagement, which can help an advisor quickly scale. Here are five ways FinTech strengthens the advisor-client engagement:

1. Delivering curated content- Maintaining a client base and attracting new clients can be facilitated with the help of innovative Fintech that allows advisors to easily push curated content that fosters advisor-client interaction rather than responsive communication. Through AI, curated content preferences help advisors better understand the client’s preferences and deliver on them.

“Investors crave more personalized content, but advisors are overwhelmed with the additional proactive outreach they need to conduct. Content support is one way corporate can help advisors deliver content at scale.”- The Evolution Of The Client Engagement Model: What Financial Services Organizations Must Deliver, Forbes.

2. Leveraging existing client data- Existing data can deliver valuable insights to both the advisor and client to identify traits from various information sources when brought into a centralized platform. When clients can access their data, they are more likely to make intelligent decisions and value their advisor’s advice.

3. Any place, any time accessibility- Since the financial crisis, clients have been challenging the wealth management industry and focusing on performance and transparency. They want justification for fee levels and information through all channels- face-to-face contact with their advisor, website access, mobile apps, and even social media. Transparency is critical to the advisory relationship, and it must display in an easy-to-understand and convenient format.

4. Using Hyper-personalization tools- Knowing a client on a much deeper level to offer recommendations that cater to their specific goals and portfolio needs is essential to providing a highly customized experience. Hyper-personalized tools ultimately foster better communication, strengthen brand identity, cultivate stronger relationships, identify client-centric preferences, and increase overall transparency. 

5. Frequently communicating– At the center of communication is touch-points delivered through FinTech. Connecting with investors in proactive ways helps the advisor to stay in the forefront of the client’s financial life showing value throughout the year, and not just at the yearly review or the quarterly performance reporting.  Since their circumstances can change anytime, clients want to feel like they have an advisor with them no matter their situation.

CircleBlack’s wealth management solution helps advisors work more effectively, manage clients and portfolios more easily, and engage with clients in a way that builds trust and helps grow business.

Claudine Martin is the VP, Head of Marketing for CircleBlack, unified best-of-breed wealth management platform that consolidates data from multiple custodians and allows advisors to choose the best solutions to fit their tech stack.