Covid-19 is a communications problem – and a technology opportunity
The recent market volatility has led to a major leap in the communications workload for advisers. Over 60% of advisers are experiencing higher in-bound enquiries. Advisers have also ramped up their outbound client communications to help clients respond to Covid-19 volatility with investment discipline. Nearly 60% of advisers have increased their activity in these areas.
Fox said, “Advisers must communicate proactively with clients most at risk – for example pension clients in drawdown or those with live withdrawal requests that look less sensible at much lower prices. Most of all, advisers will be ensuring clients don’t make emotional, poorly timed and value destructive decisions under stress.”
According to NMG, the crisis has exposed advisers’ reluctance to embrace new communication technologies. According to the survey, 91% rely on the phone to maintain client contact and 26% said they would not even consider video conferencing.
Fox, said, “An earlier investment in time and tech – allowing for one-to-many communications via video or social media where appropriate – may have created a better client experience and delivered advisers the time they need to have more focused conversations with clients in real difficulty.”
“As social distancing continues to challenge face to face advice, a renewed focus on service models is likely. The disruption will emphasise the need for greater efficiencies in service and communications, even for those advisers that have been reluctant to consider video technology. The need for efficiency will become greater than the upfront cost and effort required to change. Platforms should consider identifying these advisers and helping them, both with the provision of new technology and the tools and support to make the transformation a seamless one for advisers and their clients.”
Covid-19 – Changing the advice industry?
NMG Consulting suggest the twin forces of a revenue crunch and the requirement to upgrade communications and technologies could have long-running consequences for the industry. Fox says, “For some financial advisers this combination of revenue pressures and changed client expectations will put pressure on their business models. For other advisers it presents clear opportunities for growth.”
Who has performed well?.. And who hasn’t?
Fox added: “While asset managers have generally responded well, platforms have come in for criticism, suggesting advisers feel let down. Servicing delays and the provision of adequate communications are the two of the most problematic areas.”.
