Being a standout financial advisor requires several things such as knowledge, performance, and value. But increasingly clients also expect strong emotional intelligence.

The phrase has become standard language in business and personal contexts, but what does it mean for advisors and which aspects of emotional intelligence are most important for clients and have the most potential to deepen relationships?

A new Opinium survey of 2000 Canadians commissioned by MDRT shows how valued emotional intelligence is by clients with more than 91% of respondents saying it’s important for advisors to demonstrate it.

The research highlights the trust that people have in FAs with more than 85% of respondents saying that they find qualified financial advisors trustworthy and 77% more likely to trust an FA over their friends, colleagues, or family. This is highest among those who already work with an advisor.

Despite the high trust ratings, there are some relatively simple things that the study identified that advisors could do to improve it:

• Communicating in a way that’s easy to understand (58% said this)
• Following through on their word (53%)
• Authentic and personalized communication (48%)

Clients also want to feel heard and understood by their advisors.

Advisor expectations

An interesting part of the survey is what those who do not work with an advisor would expect from doing so – and the opinion of those who do have an FA as to whether these expectations are met.

Non-clients would expect to feel less stressed when working with an advisor – 47% overall including 53% of women and 42% of men. More than half of clients (55%) say this is the case.

Many non-clients (43%) expect FAs to help them feel protected from tumultuous financial periods that are out of their control. Again, this percentage is lower than the reality shared by clients with 51% saying their advisors do this.

“With the value of emotional intelligence still sky high for clients and prospects, financial advisors must continuously improve their ability to connect with clients on a deeper level,” says MDRT President, Greg Gagne, ChFC. “Demonstrating trustworthiness and emotional know-how as an advisor is necessary to guide clients toward a continuous path of financial security and growth.”

Stakes are higher for advisors with competitiveness on fees becoming harder to achieve and clients looking at non-transactional measures of who they want to work with.

How to improve

The study shares some areas where advisors can improve emotional intelligence to strengthen client relationships and demonstrate their value to prospects.

Less than 42% of respondents who have an advisor said their FA can resolve conflicts and communicate well. Just 38% felt their advisor is disciplined in managing their own emotions during discussions and only 28% believe their advisor is aware of how their emotions affect others.

The study concludes that by demonstrating the ability to manage their emotions, as well as their clients’, during discussions, advisors can build more trusting, mutually beneficial client relationships.