As the COVID-19 pandemic has evolved, fundamentally and forever disrupting a financial services industry historically reliant on in-person contact, its impact on advisors has evolved as well.
In the early days, experienced advisors with large stables of clients held their own, even as the way they communicated with those clients changed dramatically. Newer advisors, by contrast, found engaging new clients and building relationships very difficult, especially in the first 10 months of the pandemic.
But over time, and with the right support and tools in place, we’ve seen the industry not only adjust but thrive. Especially in 2021, we’ve seen renewed productivity that underscores this profession’s role in providing meaningful, strategic financial counsel to people in every situation and every stage of life.
As the pandemic continues to affect society in myriad ways, clients and advisors need to be ready for what comes next. Here are some major trends financial advisors should be aware of as they grow their practices and plot their career paths.
Maximize productivity by embracing the digital future of work
The pandemic didn’t spur the financial planning industry to create groundbreaking new digital tools for advisors. Many such technologies have existed for years. What COVID-19 and remote work did was change the rate of adoption.
Pre-pandemic, we saw only modest adoption of videoconferencing tools like Zoom — perhaps 20% to 25% of all advisors. Many advisors were convinced that face-to-face meetings were not only preferred but necessary. But when COVID-19 restrictions left us with no other choice but to take client engagement virtual, advisors quickly pivoted, embracing the concept of connecting remotely and relying more on email marketing.
What they found was that digital appointments can provide more frequent touch points with individual clients and increase the amount of appointments overall by eliminating the travel factor. In fact, at Equitable, advisors are reporting a 25% to 30% increase in such productivity. Video conferencing and calendar scheduling software are seeing increased use, and social posts increased 10% from 2019 to 2020.
And going digital doesn’t mean losing the human connection with clients. In some ways, our new remote way of working has made relationships between advisors and their clients more intimate. Advisors are beaming directly into people’s homes and more frequent meetings can help strengthen the crucial relationships that are so critical for advisors’ work to flourish.
Trainings and guidance are more accessible
The expansion of training programs, mentorship and continuing education are critical pieces in the evolution of advisors’ work. These opportunities have become more frequent and more accessible, and advisors should take full advantage of any and all offerings as they build their practice and hone their skills.
At Equitable, the volume of training has increased five to 10 times since the beginning of the pandemic. Creating virtual tools that can be disseminated widely has also helped democratize information. In the past, trainings were often one-on-one sessions, often with direct managers or limited regional affairs.
Now, a learning session can include 2,000 to 3,000 advisors on the same call. Remote training programs are now given on a national scale, ensuring all advisors have access to top talent. At Equitable, we’re holding five to 10 different remote training sessions a week to train advisors, a dramatic increase over previous years. This will be particularly important for advisors entering the field in a time when ways of working and client needs are constantly evolving. Advisors looking to grow their careers should seek out firms that have a culture of sharing and people willing to give their time to mentor newer team members.
Seek work-life balance through efficiency
COVID-19 has caused both advisors and their clients to re-examine their priorities and seek a better balance between life and work. Financial planning, which helps people achieve their goals, plays a major role in this endeavor. Independent advisors have the flexibility to build their own practice, better controlling work-life balance.
Our training curriculum takes this into account and is focused on working with advisors to help them achieve a sense of the balance. We spend time talking to advisors about what is important to them, and making them more aware helps them serve clients better. Financial advice isn’t just about numbers but a bigger picture that includes relationships, family and community. We’ve heard from clients that they appreciate the flexibility of virtual engagement.
The pandemic has also made clients more open than ever to discussing their financial situation, including how to protect their loved ones if something happens to them. This is fertile ground for advisors who will be in a much better position to provide meaningful counsel if they have a clearer sense of such issues in their own lives.
The bottom line for financial advisors: The ongoing pandemic has changed both our way of working, and the priorities and needs of clients. Advisors who seek better work-life balance for themselves will be in a better position to counsel clients through the ever-evolving challenges life throws at them. To get there, take every advantage of remote tools that enable more frequent touch points and deeper connection, as well as training and mentorship that will drive your career forward.
