Advise in Adversity article from Cerulli

Communication and technology go hand in hand

Summary
Whether they prefer to be self-directed or are heavily reliant on financial services providers, retail investors of all types tend to seek out more advice during times of adversity. As the social toll and economic fallout continue in the wake of the COVID-19 crisis, investors will increasingly rely on their advisors for ongoing guidance and answers as to what future developments related to this pandemic-induced crisis mean for their portfolios. In this white paper, Cerulli explores how advice providers can best equip their advisor-clients to quell the worries of investors and ensure they adhere to their still-relevant long-term investment goals.

Key Points

  • Going forward, advisors need relationships that balance effective interpersonal communication and implementation of scalable technology tools that aid advisory relationships. This two-pronged focus will position firms to succeed during times of macroeconomic turmoil.
  • Advisors need to proactively maintain lines of communication with clients to explain the current market downturn and subsequent volatility in the broader context of individual households’ longer-horizon financial plans.
  • Wealth management providers have a unique opportunity to reinforce their value, especially relative to the dozens of digital advice platforms that have sprung up during the past decade. Digital platforms do an excellent job in the basic mechanics of portfolio management, but they lack the empathy and reassurance vital to the best advisory relationships.

To read the full article, click here: Cerulli-White-Paper-Advice-in-Adversity-2020

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