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It’s hard to believe that we’re in the final quarter of 2021. At the beginning of the year, we were stepping out into a world that was coming apart and – we hoped – putting itself back together again. The pandemic that completely shifted the landscape in 2020 was still raging, but with the new availability of vaccines and more treatment options, we were hopeful that 2021 would see the return of normalcy.
And, sure enough, as the summer of 2021 started, things were looking up. People were feeling safer, they were getting out more, and for a while, at least, we were feeling optimistic.
And then came the delta variant.
Those of us who had put our masks aside got them back out. More of us decided to get the vaccine. Some of us who were vaccinated dealt with breakthrough infections. And we did all this while continuing to serve clients, maintaining marketing outreach, supporting our colleagues, and trying to maintain momentum amid markets that couldn’t decide if they were most worried about inflation, the pandemic, Fed policy, China, or all of the above.
It’s time to pause, take a few deep breaths, and assess where we are. Then, let’s look ahead at where we should be going as we finish out yet another year of unprecedented events.
Being there … virtually
For many RIAs, one of the closely watched trends at the beginning of the year included how we were incorporating virtual meetings into our interactions with clients and other stakeholders. Of course, outward-facing communications were already trending strongly in the virtual direction before the pandemic. But the events of 2020 cemented the phrase “Zoom meeting” into the vocabularies of even the most tech-hesitant among us. If you need proof, consider that in 2019, Zoom had 10 million daily users. In 2020, the number went up to 300 million. In 2021, the trend shows no signs of flagging.
Looking ahead, meeting virtually will continue to be preferred by many clients, even when the pandemic finally subsides. For advisors and clients alike, it’s not difficult to see the advantages of being able to meet with anyone, anywhere in the world, as long as both parties have adequate internet access. Even for advisors and clients located in the same city, logging into a virtual meeting is often a lot more appealing than making the drive across town.
There’s an app for that
Speaking of virtual presence, when was the last time you walked into the lobby of your bank to complete a transaction? It’s getting harder to do business in the financial services industry unless you have a robust, secure app that customers can use to do just about anything they need to do with your institution. And it’s not just banks; insurance companies, credit card providers, and even our friends in the wire houses are developing and using apps to stay connected, help customers with transactions and account/portfolio review, provide a platform for current research and recommendations, and to deliver other functions important to clients.
Want to know which sector of the financial services industry is lagging in client satisfaction with apps, according to a recent J. D. Power survey? Wealth managers. Even though more than a third of clients surveyed said that they had increased usage of apps during the pandemic, their overall satisfaction score with their wealth management app lags that of apps offered by credit card providers, banks, and insurance companies. Not surprisingly, this also equates to missed engagement opportunities. And if you’re wondering what functionalities clients may be wishing for, you should note that according to the survey, only 35% of wealth advisor apps offer chat functionality, and just 41% support secure messaging, even though these two functions are among the features that users most frequently request.
For RIAs who want to maintain maximum relationship leverage with clients – especially the Gen Xers and Millennials who will be inheriting an estimated $68 trillion in assets over the next 25 years – getting app-savvy should be a priority.
Handing over the reins
More than half of the wealth advisor population is age 55 or older. This means that succession planning needs to be top-of-mind for those RIAs. In fact, the pandemic accelerated the plans of some wealth managers, making it even more important to put in place a solid plan for the benefit of both advisors and clients. RIAs entering their career home stretch need to spend some serious time thinking about who they want to take care of their clients when they are no longer able to or interested in continuing in the business. And beyond retirement considerations, such plans should also envision what would happen in the regrettable event of a sudden illness or accident. For small firms or solo practitioners, a merger or sale to another firm may be the answer. Firms with younger associates could benefit by selling the practice to an internal up-and-comer with the vision and dedication to provide continuity for the coming years.
Whatever plan best fits your vision, timing, and company culture, and especially if you consider yourself closer to winding down your active career than beginning it, you need to think strategically and carefully about how you’ll make a handoff that ensures continuity of service for your clients and a predictable, secure path for you, your colleagues, and your team members.
Gretchen Halpin is the co-founder of Beyond AUM, an agency that provides field-tested, data-driven marketing, growth, digital alignment, and experience solutions to financial services firms across the nation, including wealth managers, financial planning firms, and RIAs & BDs. We work with firms to achieve world-class outcomes for their brands and professionals and drive success in the business beyond the AUM number. Gretchen is a regular contributor to media outlets such as Forbes and a speaker at industry conferences including eMoney and Invest in Women.
Read more articles by Gretchen Halpin
Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.
