Study reveals how virtual meetings and FinTech are reshaping client interactions and the challenges faced
The COVID-19 pandemic has accelerated the adoption of modern technologies by financial planners, with a significant shift towards virtual communications and FinTech.
These technologies offer several advantages but also pose various challenges that need addressing.
The Canadian Foundation for Financial Planning, formerly known as the FP Canada Research Foundation™, has funded a study conducted by Kansas State University researchers.
This research focused on identifying best practices for conducting financial planning meetings virtually and integrating FinTech and virtual communications effectively.
Key findings from the research underscore both the advantages and challenges of these technologies. Most planners prefer using virtual meeting platforms frequently, though many still favor in-person meetings for initial interactions with new clients.
While most clients prefer face-to-face meetings, nearly 80 percent of those opting for virtual meetings reported high satisfaction levels with their planner relationships.
The study also revealed that over half of the planners believe FinTech has enhanced their relationships with clients, a sentiment echoed by about half of the clients surveyed. Clients noted benefits such as more effective financial decision-making.
However, many planners also reported frustrations with FinTech, including issues with access, integration between tools, and complex user interfaces.
Based on these insights, the research suggests best practices for optimizing the use of financial planning technologies. Financial planners are encouraged to discuss meeting preferences with their clients to decide between virtual and in-person interactions.
Enhancing virtual communication skills, testing technology in advance, and understanding client comfort with technology can mitigate some drawbacks associated with virtual meetings.
Moreover, while planners recognize the value of FinTech, there is potential for more strategic use. Planners should take the time to explain any tools used during client engagements thoroughly.
They should also consider optimal uses of email, such as setting up client notifications about accounts and investments, securing permission for email communications, and ensuring that clients are engaged and receive relevant information.
These steps can help improve the overall financial planning experience for clients, leveraging the advantages of technology while minimizing its challenges.
