Connecting with your clients

For some clients, discussing their finances can be a very emotional and personal subject. However, there could be cognitive barriers that are preventing clients from being honest about their needs. That’s why we’ve partnered with We are IB, leaders in behavioural psychology, to conduct interviews with advisers and clients to gain insights into their experiences. Through this research, we’ll be exploring how psychology impacts your client’s trust, level of understanding and decision making.

The emotional reality of financial advice

The industry is deep rooted in the exchange of functional information. However, advisers understand that getting to know their clients means they’ll have to look beyond the numbers. One adviser explained, “So the fact find is literally, to get the facts and figures, whereas my job is to get all the soft facts, to find out about their kids and their dogs and budgerigars, what they like doing, what they want to do in retirement.”

Another adviser added, “Financial advice is a very emotive subject. You’re in the privileged, yet daunting, position of being with people when they're making some of the most important decisions in their lives, confronting things they may never have confronted before.”

Bringing emotions into a typically practical discussion can help advisers uncover their client’s complex needs. But asking clients to divulge personal information might not always be a straightforward task, as there is an element of trust involved. “I think there's certain clients that don't completely trust you. So, they don't tell you everything they've got. And you have to dig around. And then the more you get to know them, they go, oh, yeah, I've got this as well.”

Engaging clients in the conversation to begin with can also be challenging for advisers. An adviser explains, “Getting people's attention and getting very complex data across to them in short periods of time is very difficult.” Advisers may be facing time pressures and engaging clients quickly can be crucial to communicating complex information.

So, how can you overcome these barriers?

Understanding cognitive barriers

Our research* shows that there are psychological influences that could impact your client’s decision making, ability to trust and concentration. Here’s what we’ve discovered.

Moving beyond the rational approach

The finance industry is steeped in complex information, However, understanding the psychology behind your client’s ability to digest information, can lead to more creative ways of communicating. Here’s what advisers had to say on the subject.

“What I do is I draw lots of easy diagrams. I find that the client then says “Oh, can I keep that please?” I think they like the simplicity of boxes, lines, titles and the different values and how much income they produce. I just did it once, and I noticed they really liked it, so I’ve done it ever since.” -

“We need to paint pictures for them, rather than using industry labels that aren’t that helpful. So, I tend to be a great one for trying to use imagery. It's about trying to be more creative. And hopefully, as a result of being more creative, inspiring them to get the best out of their opportunities.” – Adviser.

References 

*How to have even better conversations with clients. Research conducted by We are IB on behalf of Canada Life during 2021/22 

**The financial skills of adults across the world. New estimates from PIAAC The financial skills of adults across the world. New estimates from PIAAC. Adiri Bhutoria (University of Cambridge), John Jerrim (UCL Institutre of Education and Education Data Lab) nna Vignoles (University of Cambrige) 2018 

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