Financial services is going the way of online dating... just without the need to input your height, Myers-Briggs type, or Zodiac sign in your profile.
As technology has seeped its way into every aspect of our lives, financial advisors are catching onto the tools available to acquire, cultivate, and retain clients. Gone are the days of stodgy quarterly meetings and paper reports. Financial services has entered the Tinder age.
Zoe Financial has pioneered a matchmaking service that takes its cues from the modern age of dating. According to a recent Stanford survey, 39% of respondents found their partners using dating technology, including websites and apps. According to Zoe Financial’s website, the process begins with a short questionnaire before an algorithm matches you with an advisor who can meet your needs.
Unlike Tinder though, you won’t be swiping left on poorly matched suitors. Zoe Financial says it rejects 95% of the advisors that apply to appear on the platform.
The vetting process starts with a basic credential check, ramping up to evaluate experience, pricing, and client-advisor ratio. The final step includes a qualitative assessment that looks at the client experience and the advisor’s communication style.
Whether matched through Zoe Financial or connected through another vehicle, acquisition is only the beginning of managing the client relationship. Financial advisors are finding that clients want regular updates on their portfolios. This has created a shift from quarterly reports and in-person meetings to on-demand data through robust client portals.
Real-time feedback was once considered a luxury in the financial services sector. Now, it’s a requirement to stay competitive and retain clients. That also means advisors need to be more responsive and reactive to client needs.
Video conferencing has supplemented and, in some cases, replaced in-person meetings. While this puts more pressure on advisors, it also means they can extend their geographical reach with video conferencing tools like Skype, Google Hangouts, and GoToMeeting. Podcasts are another “soft” approach for attracting clients. This form of content marketing puts the wares and know-how on display while offering something of value to potential clients looking for someone to manage their money.
The financial services world is changing, and advisors looking to stay in the running need to embrace technology and leave the old ways of doing things behind.