Business Support  

How to reach unadvised clients

  • Identify the different client groups
  • Explain how advisers can appeal to future clients
  • Explain the impact of technology
CPD
Approx.30min

Technology driven, human enabled

Given the needs and wants of the clients of the future, it is important that as a collective profession we consider what we can do to support the financial advisory and financial education needs of the unadvised clients of the future. 

Client journey

In recent months, the Covid-19 pandemic has created the need for businesses to adapt and change to embrace technology more to be able to continue to service the needs of their clients.

It is often said that we have seen five years’ worth of change in five months. 

However, for many businesses this change has been implemented to meet a short term need driven by the pandemic, whereas, instead it is important to be considering how technology can support the end to end client journey – the client journey needs to be technology driven.

Often when technology and the client journey are talked about together there is the perception that it is all about robo-advice.

Robo-advice, I am sure, has a part to play for a proportion of clients with great solutions provided in this space by the likes of Scalable Capital and Wealthify to name just a couple.

However, for many of the unadvised market robo-advice does not go far enough. They are looking for a hybrid approach where technology supports the client journey and compliments human interaction. 

Research suggests that many of the clients of the future do not only want robo-advice because in the main they do still want to talk to a human from time to make sure that they are on track.

This view is supported by a paper recently published by Insider Intelligence  - The hybrid robo-advisor report - which illustrates how hybrid robo-adviser products have been met with exponential growth over the years, and how it is anticipated that the pandemic and millennial wealth transfer will further accelerate growth in this business model.  

Hybrid offerings are likely attractive to consumers amid the pandemic because financial advisers can provide additional support and reassurance that a technology solution just cannot do.

In addition, hybrid “robo” models can cut costs along the value chain by using technology, which means they can be offered at a lower price and potentially be attractive to younger clients who will remain clients for many years to come. 

When considering how to tap into the unadvised market of the clients of the future it is important to have a client journey that is supportive of their needs which is typically one that is focused on getting them into the savings habit and providing them with understanding of what they need to do with their finances to support their goals and aspirations