In the interest of saving time poring through client information ahead of meetings, any worthwhile wealthtech platform should segment clients beyond just their assets and portfolio management details. The increased importance of specialization means it is no longer sufficient to classify clients solely by their holdings. In addition to denoting whether clients are high-net-worth or ultra-high-net-worth individuals and so on, fintech platforms should separate clients into subsections accounting for their attributes. This could include factors such as their level of education and risk tolerance, all details that can be gathered during the screening process and easily adjusted in the event of life changes. While this might mean having to file three reports for clients utilizing a particular portfolio approach rather than just one, a quality system should make it such that all you would have to do is populate the data with a limited number of categories as opposed to manually entering info for a handful of individuals. Furthermore, an appropriately segmented system should enable advisors to customize their output based on how much information particular clients are seeking, and in turn, determine whether they can scale in the new market.
Instead of sticking solely to generic account and portfolio performance reviews, advisors should regard each client meeting as an opportunity to “repropose” and re-sell themselves. It is critical to afford each meeting with the same amount of time and effort that was invested during the initial proposal which earned the client’s business. When used correctly, technology can make this process seamless. Advisors should be properly equipped to engage clients quickly and without ambiguity so they can build trust and showcase their value transparently. Advisors must arm themselves with a fintech platform that provides timely, quality data and robust analytics along with reporting and research capabilities to gain such an advantage. While painting a clear picture of the benefits of a particular tax strategy or the impact an allocation change might have on a portfolio is vital, these tools should also empower advisors to keep tabs on their clients as well as open new doors for emotional and financial engagement.
Using technology in service of focusing on clients’ needs while generating new business and nourishing existing relationships is a winning formula. Technological yields are only as good as the inputs that produce them, so make the most of the resources and clients you already have at your disposal; it could make all the difference between whether you will be expending energy to establish a customer base or expanding one.
Chris Volpe is the head of Zephyr, a provider of asset allocation, investment analysis, portfolio construction and client communication support to help advisors and asset managers retain and grow client relationships.