A lot goes into a successful wealth management practice. Advisors will usually focus on technical proficiencies, including their money management process and, to a lesser extent, their wealth planning capabilities.
But those aren't the most important factors that make for a sensational wealth management practice. The most important factor is you!
Being technically competent is indeed very important to success, but the human element—your ability to develop a deep understanding of your clients and of other professionals who can refer affluent clients to you; your ability to build rapport with these people; your ability to provide the most viable wealth management solutions based on your clients' needs and wishes—is the most important factor determining the success of your wealth management practice.
The human element is the personal and emotional part of wealth management. It is cornerstone and in the end it is what differentiates you from all the other professionals concentrating on the wealthy, as well as the not so wealthy. Because of the complexity of most people’s lives, robo-advisors or even most financial advisors cannot effectively compete with you if you are strongly focusing on the human element.
Based on extensive research involving elite wealth mangers and super-rich clients worth $500 million or more, we've concluded the human element has a number of aspects:
• Curiosity and discovery: By adroitly using insightful questions powered by sincere curiosity about the wealthy, you are able to learn a great deal about their dreams and wishes, their needs and wants, as well as their anxieties and concerns.
• Tactical empathy: Make sure that you really comprehend the messages—verbal and non-verbal—you are getting from the wealthy. Using an array of interpersonal communication skills such as summarizing, you can ensure you clearly understand other people.
• Connecting the dots: By being insightful, you can and your team can identify viable wealth management solutions. You can deliver great value with a solid understanding of what value is for these clients.
• Framing recommendations: Align your recommendations with the thought processes of the wealthy. Communicate with them in a way that meaningfully resonates.
Provided you and your team can deliver high-quality wealth management solutions, the human element is why the wealthy will work with you and remain clients, even during severe financial downturns. All the aspects of the human element are learnable.