Once advisers understand the aetiology, they can begin to identify appropriate responses. For example, if a financial adviser discovers through steps one and two that their customer is hard of hearing, and the company they deal with only communicates with them over the phone, it is likely that they are dealing with a permanent presentation that stems from an institutional root.
The solution, in this case, would be simple. The financial adviser would set about changing the way the institution (or company) engages with the customer – email or live chat, for instance, would be an easier way for the customer to communicate.
How to approach support provision
Now that the three-step framework of identify, link and support has been outlined, how can financial advisers ensure this is deployed in the most effective way possible?
Although there are many nuances that individual advisers may adopt as part of their approach to provisioning support for at-risk customers, there are some best practice techniques and methods that all advisers should consider.
For a start, creating a safe space to explore the issue of financial vulnerability with clients is essential. By doing this, customers are much more likely to engage and be truthful, because they know they will not be judged at any stage of the process. To help create a safe space for them, advisers should consider five key elements:
- Actively listen: This may appear obvious, but it is crucial to listen to clients without distraction and to be 100 per cent tuned into what they are telling you. It is easy to slip into the habit of talking too much, especially if the customer is shy or does not talk at length. Likewise, try to refrain from interrupting; take notes instead, and ask clarifying questions at the end.
- Be focussed on the individual: Eye contact is important to establish trust and tells the customer that you are attentive to their needs.
- Unconditional positive regard for the client: This is critical to making them feel at ease and that they are not being judged. Avoid projecting superiority, and make sure the client knows that they are in control of what they can say and when they say it.
- Understand first, advise second: Allow the customer to explain their situation in their own words before providing your version or narrative. By doing this, you are far more likely to develop a truthful, accurate understanding of the client’s situation.
- Use reflective language: You should be able to quickly grasp the type of language the customer uses. Try to keep conversations at the same level to ensure mutual understanding of what each person is saying.
