Introduction
In today’s fast-paced financial landscape, where technology disrupts tradition and client expectations evolve rapidly, the role of a financial adviser has become increasingly multidimensional. No longer defined solely by portfolio management or investment advice, advisers are now expected to deliver meaningful relationships, tailored experiences, and strategic insights. At the heart of this evolution lies one essential competency: client engagement — a nuanced blend of empathy and analytics that separates good advisers from great ones (Barrett, 2018).
Beyond Communication: What Client Engagement Really Means
Client engagement is more than regular check-ins or well-timed phone calls. It is the ongoing, intentional interaction between an adviser and their client that fosters trust, strengthens loyalty, and builds a long-term partnership. When done correctly, engaged clients are not just passive recipients of advice; they become active participants in their financial journey.
Engaged clients are more likely to:
-
Stay committed during market volatility
-
Increase assets under management
-
Explore additional services
-
Refer friends, family, and colleagues
To cultivate such engagement, financial advisers must operate at the intersection of soft skills enhanced by technological tools and data-driven insights — merging the art of relationship-building with the science of technology, and effective business processes, to deliver valuable financial advice (Deloitte, 2021).
The Art: Emotional Intelligence in Action
1. Intentional Listening
Active listening is a cornerstone of emotional intelligence. Advisers who truly listen beyond the numbers uncover the deeper motivations, fears, and aspirations that shape a client’s financial life. For example, when a client says, “I want to retire early,” the adviser should explore the “why” behind that desire. Is it about freedom, health, legacy, or something else entirely? Understanding this context can fundamentally change the strategy (Goleman, 1998).
2. Personalisation Through Empathy
No two clients are alike. Great advisers recognise and honour the personal stories behind the numbers and projections. Whether advising a young family building generational wealth or a retiree managing the drawdown of their finances, empathetic advisers adapt their tone, timing, and recommendations to fit the person, not just the profile.
Life is unpredictable. Advisers who show compassion during major life events — marriage, divorce, bereavement, childbirth — reaffirm that they are more than just financial guides; they are partners in life (Loewenstein, 2001).
3. Using Storytelling to Educate and Inspire
Storytelling helps make abstract financial concepts relatable. Whether using analogies, success stories, or metaphors, advisers who tell stories create memorable, emotional connections. Explaining a market dip as a “temporary storm in a long voyage” can reassure a nervous client. Visual electronic tools that help illustrate these stories can greatly enhance understanding and retention (Heath & Heath, 2007).
The Science: Data, Technology, and Behavioural Insights
1. Personalised Advice Backed by Data
Modern financial technology empowers advisers to analyse client behaviour, spending patterns, and preferences in real time. This enables more precise, proactive, and personalised planning.
CRM systems and financial planning software allow for tracking life changes and provide timely advice, making each interaction feel considered and relevant (PwC, 2022).
2. Behavioural Finance: Navigating the Irrational
Clients often make emotional decisions that defy traditional financial logic. Behavioural finance provides frameworks to identify and manage these biases, such as loss aversion, recency bias, or confirmation bias (Kahneman, 2011).
Advisers well-versed in behavioural insights can coach clients through turbulent markets, helping them avoid rash decisions and stick to long-term plans. Reframing market downturns as “buying opportunities” rather than “losses” is a powerful application of this science.
3. Leveraging Automation and Digital Tools
Technology does not replace the adviser; it augments them. Digital tools such as personalised dashboards, automated updates, and secure client portals allow clients to stay informed and involved on their own terms. Video summaries, interactive reports, and dynamic forecasting models can also enhance comprehension and engagement (Capgemini, 2023).
When used wisely, automation allows advisers to scale their services while maintaining a high-touch feel. However, the human element must always remain front and centre.
Integrating Art and Science: A Holistic Strategy
The most successful advisers blend these disciplines seamlessly. Here are four practical ways they do so:
-
Regular, Relevant Communication: Move beyond the annual review. Mix market commentary with life-stage advice and check-ins triggered by milestones (birthdays, anniversaries, etc.). Timeliness matters as much as frequency.
-
Co-Creation of Financial Plans: Invite clients into the process with scenario planning tools and visual aids. When clients contribute to the design of their plan, they develop ownership and are more likely to adhere to it.
-
Feedback: Use surveys, client reviews, or simple conversations to gather input and adjust your approach. Clients want to know that their voice shapes their experience.
-
Celebrate Wins: Whether it is paying off a loan or buying a first home, recognising accomplishments strengthens emotional ties and reinforces progress.
Why Engagement Pays Off
Client engagement is not just about warm feelings; it drives measurable results. Research consistently shows that engaged clients:
-
Stay longer with their adviser
-
Add more assets over time
-
Weather market downturns with less panic
-
Refer more often (Gallup, 2014)
Ultimately, trust is the most valuable currency in financial services, and engagement is how it is earned, kept, and multiplied.
Human First, Data Informed
As robo-advisers and digital platforms continue to rise, the differentiator for human advisers is not better mathematics — it is better connection. But connection alone is insufficient. It must be supported by data, structure, and insight.
Financial advisers who master both the emotional and analytical dimensions of their craft stand to build relationships that are not only profitable but also deeply meaningful. In a profession built on trust, that is what enduring success looks like.
AstuteWheel creates its tools taking using both art and science.
Here are just some of the electronic questionnaires and tools provided in the software for advisers to use with their clients:
Secure Client Portal, Goals Questionnaire and Tool, Financial Health Checks, Life Areas, Values, Client Thinking Styles, Risk Profiling, Scoping, 20+ Calculators, Wealth Projection Modelling Calculators, Risk Needs Analysis, Client Review Reports, File Notes, Workflows, CRM.
To take advantage of this technology visit www.astutewheel.com.au/book-demo to see a live demonstration of the software in action.
Dr Michael Topper is a Director of www.astutewheel.com.au
References:
-
Accenture. (2021). The New State of Advice. Retrieved from [Accenture website]
-
Barrett, L. (2018). How Emotions Are Made: The Secret Life of the Brain. Pan Macmillan.
-
Capgemini. (2023). World Wealth Report 2023. Retrieved from [Capgemini website]
-
Deloitte. (2021). Client engagement in financial advice: Beyond digital. Retrieved from [Deloitte Insights]
-
EY (Ernst & Young). (2022). Global Wealth Research Report.
-
Gallup. (2014). State of the American Consumer: Customer Engagement Insights for Business Leaders.
-
Goleman, D. (1998). Working with Emotional Intelligence. Bloomsbury Publishing.
-
Heath, C., & Heath, D. (2007). Made to Stick: Why Some Ideas Survive and Others Die. Random House.
-
Kahneman, D. (2011). Thinking, Fast and Slow. Penguin Books.
-
Loewenstein, G. (2001). The Pleasures and Pains of Information. Science, 312(5774), 704–706.
-
PwC. (2022). Financial Services Technology 2020 and Beyond: Embracing Disruption.
