The coronavirus pandemic of 2020 has completely reshaped how the world works, impacting day to day people and also entire industries. An inevitable indirect effect of the pandemic is a change in the needs and wants of customers of any product or service. This is no different in financial services. As a result of coronavirus, clients may have changed what they want from their Financial Advisors or Mortgage Advisors. In terms of delivery of service or outcomes achieved.
The good news is financial services has been one of the lesser impacted industries. Whereby Financial Advisors and Mortgage Advisors were still able to operate during lockdown. Hopefully, in this blog, we will be able to provide some thoughts on what Financial Services clients want after the coronavirus pandemic.
Move toward digital delivery of advice
63% of clients and investors now feel more positive about using digital means of communication (e.g. Zoom and Skype). From our conversations with IFAs we are receiving feedback that clients are actively requesting their review is undertaken via video call. This is notable as it has seen a shift from traditional face to face advice to more flexible. With accessible advice in the form of online or video conferencing. As shown by the graph below, Google’s search volume for the term ‘zoom’ skyrocketed in March and peaked in April. The same month in which 300 million meetings took place with many similar platforms following closely behind. This change in delivery of financial advice via video call is showing signs of remaining in place into the future.
More frequent communications from advice firms
In conjunction with the previous point, one notable observation made from the value of advice report commissioned by St James Place. Is that 23% of service users say that Covid-19 has changed what they want from Financial Advisers. Namely they want more frequent and proactive financial advice from their Financial Advisers. This can tie in well with the increase in use of video conferencing. We have received feedback from Financial Advisers that using video calls makes it far easier to arrange client meetings and the reduction in travelling can increase productivity. As discussed in a previous blog on the impact of coronavirus on financial services. It is pleasing that 47% of Financial Advisors believe they have improved relationships with clients during lockdown.
More proactive communications from advice firms
As a result of the turbulent and volatile nature of the economy, it can be difficult for clients to remain up-to-date with the financial news and how this effects their standings. By Financial Advisors showing a pragmatic approach, clients can feel reassured. This could include, showing clients you are up to date with the latest news and trends. According to Holly MacKay the Founder of Boring Money, an important aim clients have when seeking financial advice is “peace of mind and reassurance”.
To conclude, the coronavirus is going to unquestionably change the landscape of financial services. However this isn’t necessarily a bad thing, there continues to be opportunities to grow your business. Whether this is through strengthening existing client relationships or beginning new ones. Just bear in mind the key points we have made in this blog when doing either of these things to ensure a successful trajectory.