Blended engagement the way forward
Value-adding client engagement is a non-negotiable in the advice-led wealth management value proposition.
However, lockdown restrictions forced the wealth management sector to adapt its traditional high-touch client relationship model. Like other industries, wealth managers turned to digital technology to meet with clients and provide financial advice, which proved vital during the height of the pandemic-fuelled sell-off.
“Two years ago, online meetings were not the preferred choice with clients. Most preferred a face-to-face approach, especially older clients who were generally less tech-savvy,” explains Gill van Gass, Wealth Associate at Alexander Forbes Wealth.
“Today, most clients no longer consider online engagements as an inferior low-touch interaction. However, that perception depends on the strength of the client relationships before the pandemic, in our experience.”
Wealth managers and clients have embraced various digital platforms in response to the pandemic, with many relying on video conferencing tools such as Zoom or Microsoft Teams while others prefer mobile platforms such as WhatsApp.
Dan Hugo, CEO of PSG Distribution, believes a hybrid advisory model that blends technology with face-to-face interactions will become the norm beyond the pandemic.
“Some clients will continue interacting digitally, while others will prefer face-to-face meetings. Tailoring the client experience to suit their circumstances and ensuring the client always feels heard and valued will deliver that vital human touch, regardless of the communication channel. Ultimately, it boils down to the quality of the engagement and its intent.”
This blended engagement model gives wealth managers scope to deliver better value to clients through more focused and individualised advice and more frequent interactions.
“For example, providing ondemand access to wealth managers via online channels has made it possible to connect more regularly with C-suite execs, who typically have busy, inflexible schedules. Now they can connect whenever they get a gap,” explains Van Gass, adding that “using online interactions to deal with administrative tasks also creates opportunities to use face-to-face meetings to build rapport and deepen the client relationship with more personalised interactions”.
Leveraging robo-advisors as part of HNWI financial planning strategies in SA will amplify this value-adding benefit: “These tools allow wealth managers to scale their practices without adding administrative or compliance costs,” explains Grant Locke, Head of OUTvest.
“These platforms empower clients to manage more of their wealth, from implementing goals-based savings strategies to accessing investment products via a cellphone, tablet or PC. This allows the advisor to focus more time on servicing the client and delivering advice.”