Investors said changes to the way they have been communicating with their advisors amid the pandemic will likely become the new normal, according to a new survey from Broadridge Financial Solutions Inc.
More than half (57%) of investors said their interactions with their advisors have changed in some way because of stay-at-home mandates. And nearly two-thirds (62%) of those who reported a change in mode of communication said they would entirely or partially maintain their new methods after the pandemic ends.
The survey, which was conducted in June and included 1,000 individuals who currently use a financial advisor in the U.S. and Canada, found that most respondents (58%) communicated through phone calls, and 46% cited emails as the new way they interacted with their advisor during the pandemic.
The survey found that Zoom meetings were the least favored by respondents. Although more than a third (36%) used video chat, only 9% prefer that method above all others, the survey said. Millennials investors, it noted, were most likely to use video chat with their advisor (59%).
“We are seeing an accelerated adoption of digitalization and personalization from investors, financial advisors, and wealth firms as a result of the pandemic," Michael Alexander, president of wealth management at Broadridge, said in a statement. “These behaviors are broadening, deepening and changing the client-advisor relationship. As a result, investors don't want a return to the past. They largely prefer this new normal."
As for what they are looking for when connecting with their advisors, respondents said they prefer individualized information. Forty-four percent said they are interested in a comprehensive view of their accounts; 32% said money saving tips tailored for them; 32% said ideas for new investment vehicles that could work for them; and 9% said they want personalized analysis of investing habits.
The survey found that younger investors strongly desire to connect with their advisors through social media. Most Gen Zers (86%) and millennials (87%) said they are comfortable having an advisor follow them on social media to offer a more customized experience. Meanwhile, 60% of Gen Xers and only 20% of baby boomers are comfortable.
Millennials chose Facebook (66%) as the top social media platform where they would feel comfortable with their advisors following them, followed by Gen Xers (46%) and boomers (15%). Gen Z, on the other hand, is most comfortable with advisors following them on Instagram (53%). Fifty percent of millennials also are comfortable with advisors following them on Instagram.
Further, millennials (87%) and Gen Z (86%) are most likely to be receptive to reading advisor communications on social media as opposed to 59% of Gen Xers and 18% of boomers.