How to engage financial advice clients in 2021

Where would we be without our Netflix subscriptions, the Just Eat app, even our CRMs?

Whether it’s delivering films, food or financial advice, technology gives us a simpler, more convenient way to access what we need. And the better the experience gets, the more we want to use it.

The big techs behind the most popular tools and apps know what works when it comes to getting people engaged and tapping for more. And now these trends are filtering down into financial technology, there’s no reason why financial advice firms can’t be as ‘sticky’ as Spotify, or as data-driven as Netflix. Here’s how:

1 - Be as habitual as Instagram or Twitter with a Client Portal

Checking our social media feeds or news apps is often the first thing we do when we wake up and the last thing at night. But did you know it’s the same for our finances?

Our research shows a large number of clients log onto a portal for 80 seconds or less, just before bed, to check their retirement balance.

Make it easy for clients to access information about their finances by introducing a client portal, and you’ll satisfy their need for peace of mind 24/7 without having to lift a finger.

2 - Be as engaging as YouTube with digital statements of advice

An incredible 1 billion hours of video are watched every day on YouTube. People of all ages love videos, but they are also proven to be a more effective way of communicating - viewers retain 95% of a message when they watch it in a video compared to 10% when reading it in text.

So if you’re still using print-outs of graphs and spreadsheets in your conversations with clients, it’s time to move on to more memorable and engaging methods.

New advice tools can bring your recommendations to life colourfully and vividly using pictures and videos to engage your client. Digital statements of advice use cutting-edge graphics and animations while software like Xplan Prime also uses visual elements to make explaining concepts like financial modelling a doddle.

3 - Make financial education as easy as Duolingo

Even if you didn’t quite finish that beginners’ Spanish course during lockdown, chances are you explored one of the many online learning platforms that have popped up. With the opportunity to broaden skills affordably and conveniently, e-learning is a welcome trend for improving financial literacy.

You can now get access to a vast range of super cool financial resources including articles, infographics and videos to instantly plug into your e-newsletters, social media and other digital channels. As well as being an easy way to provide content and add value, helping clients buff up on their financial knowledge can be quick, easy, even fun.

4 - Be as data-driven as Netflix

How has Netflix become the most valued media company in the world? Their use of big data and analytics help them make the right decisions and identify what people want.

If you still see data management as a necessary evil in your business, it’s time to start doing more exciting things with it just as Netflix does.

Data analytics software can alert compliance teams to issues and risks before they happen and provide vital business intelligence insights to drive productivity and profitability that might not have been possible before.

Just as Netflix uses machine learning to test what we’ll click and watch, machine learning in certain types of adviser software is continuously informing and improving the advice process. There are bots that can track adviser behaviours and tell us humans the best opportunities to take, much like Netflix will show us the box-set to binge next.

5 - Bring it all together like Spotify

Just as Spotify has given us an innovative way to listen to the music we love by streaming it digitally, Open Banking will create new ways to access financial products and services and this year we’ll start to see the benefits.

The opportunity to provide an accurate picture of a client’s financial position will be enormous. Like Spotify uses data to understand and predict our listening habits, once data sets are brought together Open Banking will bring similar potential for advisers to better understand and predict a client’s financial habits and behaviour.

It will also open up a raft of new integrations and applications enabling businesses to put an advice software system like Xplan at the centre and plug-in what they need from the vast choice available. Such a set up could create a customer experience to rival that of any tech company; eliminating friction, providing a single source of truth and automated processes and workflows. Now that is music to our ears.

So there you have it. Five tricks influenced by the biggest tech brands that you can start doing today for better client engagement and loyalty.