This shift has the potential to acutely affect the financial advice community as advisers come to terms with new ways of working.
There’s no doubt that adapting to these changes will be daunting, but sound advice, and the critical role financial advisers can play in protecting and improving the financial prospects of their clients, has never been more important.
The need for financial advice has never been greater.
The situation we now find ourselves in presents unique challenges, both operationally, financially and personally.
The financial advice industry is in a unique position when it comes to offering the advice people need during this time. For individuals and businesses struggling with the financial implications of the Covid-19 pandemic, it may be tempting for them to deprioritise financial advice and see it as a luxury.
Therefore, one of the greatest challenges that financial advisers will face during this time will be to encourage clients and prospects that financial advice is now more essential than ever.
Then there’s the challenge of adapting to a different way of working, including remote operations and potentially working with reduced capacity, at least in the short-term.
The prospect of operating a business online, at home and with reduced staff numbers will be unnerving.
Additionally, managing the logistics of virtual consultations while offering an uninterrupted service will likely be a source of stress for many.
Value of advice
Despite this, there’s good reason to be optimistic.
The financial advice industry is in a unique position when it comes to offering the advice people need during this time.
From providing direction on where to access short-term financial support, to advice on managing employees and helping to plan for the longer-term, financial advisers are perfectly placed to address the real-time concerns of businesses large and small.
Spotting the hidden opportunities
While the current situation means that face to face contact isn’t possible, most of us are spending more time maintaining our relationships via video, phone and other virtual platforms.
We’ve seen an increasing number of enquiries from financial advisers concerned about the lack of face time with clients and how this could impact their ability to ‘get the job done’.
Sean Craig, a financial planner at City Financial, recently told me: “Since a lot of our work has traditionally relied on face-to-face contact with clients, transitioning to virtual working has been daunting for many of our advisers – particularly those who aren’t typically used to working from home.
“However, it’s shown us that new ways of working are possible and we can continue to offer significant value to our clients.
“From reassessing and evaluating existing investment portfolios to simply offering the reassurance clients need during this time, it’s clear that the need for solid financial advice is now greater than ever.”
The good news here is that while the way we work might change in the short-term, unexpected benefits may come out of this in the long run.
We’ve seen an increasing number of enquiries from financial advisers concerned about the lack of face time with clients and how this could impact their ability to ‘get the job done’.As advisers and clients become more comfortable with online services like virtual consultations, we could see a reduction in the time that advisers spend on face to face meetings with clients.
Thinking even further, remote working could do wonders for productivity, reducing downtime and allowing for greater flexibility in how and when financial advisers choose to operate.
In addition to the potential financial benefits of saving on costs associated with client meetings, a new way of working could be transformative for work-life balance too.
Adapting to a new normal
We’re currently experiencing the most significant work-life transition in our generation, and we’re all going to have to adapt to a new way of living and working for the time being.
Communication and community are at the core of the financial advice industry, and they have to be at the heart of our response to managing through this crisis too.
At Scottish Widows we’re still here to offer support to financial advisers.
There is a wealth of information out there for advisers to take advantage of during this time to help respond to client needs and get the much-needed reassurance to navigate through this uncertainty.
There will of course be many challenges to face over the months ahead and the way all of us work may be irrevocably changed, but by maintaining a sense of community and using the right tools and support, advisers can continue to provide a first-class service to their clients.
Siobhan Barrow is head of individual distribution at Scottish Widows
