More than 53% of American adults have been fully vaccinated against Covid-19, according to the U.S. Centers for Disease Control and Prevention, opening the door to literally opening the door.
As social distancing and masking requirements wane across the country, people may start to breathe more easily in social situations and feel safe seeing others outside their homes. And advisors need no invitation to send a face time request to clients – real face time, not the kind from a screen.
However, as the pandemic fades, it is unlikely we will snap back to the pre-pandemic “normal”; rather, the effects of being locked down and isolated from one another will linger. Financial advisors can emerge stronger than they were before if they account for a few key changes to normal and the longer-term industry impacts of being unable to spend time together for much of the past year.
Clients Want To See You, Too—Safely
A vast majority of Americans are looking forward to the end of the restrictions on where they can go and with whom they can interact. A recent survey found that more than 65% of Americans want to go back to the office. The chance to meet for coffee, eat a nice dinner or even sign some paperwork in person seems like a win after a year-plus of isolation. However, few will take you up on that drink, meal or meeting unless they feel safe.
Providing a safe place to interact face-to-face builds critical trust between advisors and clients, and trust is at the root of what the independent wealth industry does to serve American investors. Each client will be different and have a different risk tolerance for these kinds of meetings, and understanding these tolerances provides incredible opportunity to engage on a personal, trust-building level with clients.
Undoubtedly, we will maintain the tools that enabled communications and engagement during the pandemic as we move forward. And while not impossible to cultivate close relationships in a videoconference or a telephone call, we have yet to find a substitute for being together and looking someone in the eye. Taking the time to cultivate a meaningful interaction in a safe environment will breed trust between an advisor and a client.
Pent Up Capital And Hungry Product Sponsors
Just like your clients, capital is sick of being stuck inside. On average, index funds and traditional investments saw an approximate 30% increase in value in 2020. Investors need their financial advisors to plan a strategy to fully take advantage of this windfall. That could mean diversifying their holdings or finding other ways to protect their wealth in the face of the proposed Biden administration tax changes.
Underutilized capital represents lost revenue and raises the risk that a client will seek other professional guidance.
Simultaneously, product sponsors desperately need to present their investment opportunities to investors. The ability to make a pitch for a large scale or not-as-well-known alternative takes time and, likely, in-person meetings. After a period of restricted travel, these sponsors are willing to take the extra step to get in front of the right investors.
The duality of this situation positions advisors to demonstrate value to their clients and product sponsors. By working with these sponsors and presenting the best opportunities from them to clients, advisors help their clients diversify their portfolios, help match sponsors with investors for their products and expand their share of wallet.