Evolving the soft facts

Emotions play a huge role in how clients feel about financial products and how they make decisions long term. And sharing emotional empathy in conversations could be the key to building stronger client/adviser relationships. But are advisers given the tools to communicate with their clients on a deeper level?

Developing soft skills in a functional industry

In a heavily regulated industry, ongoing training is essential to stay up to date with changing economies, legislation and products. And now more than ever, there’s a heightened industry focus on client outcomes. But are advisers able to access training consistently, when it comes to building long-lasting relationships with their clients? One adviser explains, “There’s very little out there about client relationships. There is some training for building relationships to generate leads, but there is very little in terms of rapport building and building the soft facts with clients.”

Getting to know clients on a deeper level can aid your understanding of how they think, what their emotional barriers are and how they view the long term. However, in an industry that’s grounded in the functional exchange of information, advisers are learning soft skills through experience. This could create inconsistencies in advisers’ core communication skills. But advisers are ready to engage their clients on a deeper level and aren’t afraid of talking about emotionally charged issues.

Advisers envisage a different future

Client-orientated advisers are ready to embrace coaching philosophies and are comfortable talking about holistic advice. Our research shows that advisers want to place a greater focus on the client’s emotional relationship with their finances as a starting point, rather than just looking at the functional. But is there adequate support in the industry to support this? One adviser says, “I would love to make it more about financial coaching, seeing how I could integrate that into what I do already. In the industry, coaching and traditional advisory are perceived as two separate entities.”

“I would love to make it more about financial coaching, seeing how I could integrate that into what I do already. In the industry, coaching and traditional advisory are perceived as two separate entities.”

This shows that while advisers are open to change, there is a disconnect between the traditional and emotional side of advice. So, why is it so important to bridge this gap?

Financial advice in a digital age

Advisers face increasing competition from digital platforms that offer do-it-yourself solutions for clients. Potential clients can independently search for practical recommendations online. They can also become part of communities that share tips and examples. This can offer clients a sense of control and enable them to seek out information on their own.

However, as we’ve explored through our Long Term Close Up campaign there are behavioural drivers that impact the way clients think long-term and their decision making. Some clients might also find it difficult admitting they don’t know more about their finances, have cognitive strain from information overload or think that their circumstances will never change. So, making the most of person-to-person interactions is critical, especially when it comes to helping clients plan long term.

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