In an era where technology has revolutionized the way we conduct business, financial advisors find themselves navigating a rapidly evolving landscape.
Clients today demand more than just financial expertise; they seek personalized experiences that cater to their unique needs and goals. As the financial advisory industry becomes increasingly competitive, advisors must go the extra mile to establish meaningful connections and build trust.
Thankfully, the key to unlocking this success lies in the power of personalization. By harnessing tailored strategies and leveraging advanced technologies, financial advisors can elevate their services to new heights, creating exceptional experiences that resonate with each individual client.
Helen Yang, CEO of Andes Wealth, urges advisors to go beyond behavior finance to deliver personalized service in order to enhance client satisfaction.
Click on the video below to watch the full interview.
Transcript:
People have been talking about for years about delivering personalized services. We're not talking about remembering people's birthdays and their pet names. Those are the things that friends do for each other for free. How do you provide personalized services that are truly meaningful? Let me put it this way – the launch of ChatGPT is really a final wake-up call that the traditional cookie-cutter service is not going to cut it anymore. The challenge is, what does truly personalized service look like? And how do you deliver that? That has been the biggest challenge facing the industry.
The solution starts with – what does the personalized service look like? People have been talking about behavioral finance, which has really been key in developing personalized services, but that's not enough. If you think about using behavioral finance, the core methodology itself needs to be customizable. Then we can infuse it with behavioral finance so that you can really get a personalized approach delivered to the advisor. The next challenge people ask, 'Is that going to take a lot more effort?' My answer is if you have the right technology, it's going to be systematic, it's going to be structured and it's going to be semi-automated. You're just going to cruise at a much higher level.
If you think about the client journey, it starts out with a risk tolerance assessment, then the proposal and then the investment policy statement. Think about how you can personalize that process. For example, for a risk tolerance test – if you use model sets, etcetera – how do you provide a way to use your own model sets to power their risk tolerance, so that it's going to be a meaningful choice for your clients? When they pick a choice, it's going to match one of your models. That is the first way to start personalizing. Also for the IPS [investment policy statement], how do you generate meaningful IPSes that are deeply personalized in an automated way? I think that would be a very good start to establish a client relationship.
