More than half of IFAs (56 per cent) expect to be using a blend of face-to-face and virtual contact when working with clients in the next year, according to research by Opinium.
The online survey of 204 IFAs carried out in August found that almost a third (30 per cent) expect to mostly see clients face-to-face, while 14 per cent expect they’ll only interact with clients virtually.
Four in five (80 per cent) IFAs said clients aged 18 to 35 years preferred to get in contact virtually, either by phone, video call or email, while 17 per cent said younger clients would rather have face-to-face contact.
Meanwhile, around 40 per cent of IFAs said clients aged 70 and over preferred virtual contact, with the majority (60 per cent) of this age group preferring face-to-face interaction.
According to IFAs, virtual and face to face interactions bring different benefits, with face-to-face contact believed to be creating stronger relationships (80 per cent) as it engages clients in the process and builds trust.
However, those advisers who meet clients virtually said this method saved time (66 per cent), allowed meetings to fit around each other’s schedules (55 per cent) and was more efficient (54 per cent).
Alexa Nightingale, research director at Opinium, said: “With restrictions largely over, IFAs face an interesting dilemma as to how to best engage with clients over the next year.
"Younger clients prefer virtual contact, which is easier and more efficient, but IFAs don’t necessarily think this type of interaction builds as strong relationships or trust as face-to-face contact.
“Therefore, with IFAs looking to engage with the next generation of clients, it may be likely that we see a blend of contact methods become the new normal.”
Optimistic for the future
Elsewhere, a survey by SimplyBiz found 93 per cent of advisers will continue to offer digital engagement options to clients, alongside face-to-face meetings.
The survey, which was conducted throughout July 2021 with over 300 SimplyBiz member firms, found the vast majority of its members (76 per cent) were feeling optimistic about the future, with just 3 per cent saying they had negative feelings about what lies ahead for their business in the post-pandemic world.
Approximately 74 per cent of respondents said they want to retain the choice to attend SimplyBiz events either face-to-face or virtually, with 55 per cent saying they would also like the option of physical and virtual compliance visits.
Members also ranked the biggest challenges and opportunities they anticipated in the upcoming twelve months and the top three most commonly mentioned challenges were PII fees, administrative burden and regulatory pressures.
The three challenges which came up most often were building value for the future, increasing operational efficiencies and re-engaging existing clients.
Engaging new clients, utilising developing technology and intergenerational advice were also viewed as significant opportunities for advisers.
Around 58 per cent of respondents said they saw an increase in the size of their client-bank since the start of the pandemic, with just 5 per cent reporting a decrease in size.
Richard Ardron, marketing director of SimplyBiz, said: “The past sixteen months have been tough for all of us, and it’s fantastic to see results of our survey demonstrating, once again, the resilience and ability to adapt which is so prevalent within the adviser community.
“Overall, the results revealed both that advisers were generally optimistic about the future, and that they have reason to be.
"With client banks growing, understanding of the importance of advice increasing and more channels of communication between clients and advisers now available, the future looks very positive for our sector.”
sonia.rach@ft.com
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