Changing business models
In their pursuit to add value for clients in the current environment 82 per cent of UK advisers said they were now using model portfolios in their practice, and four-fifths said their clients valued them for their financial planning services.
Minimising taxes was another way to demonstrate value to clients, according to 91 per cent of those surveyed in the UK.
Finally, in the wake of the Covid-19 pandemic, clients were increasingly assessing their lives and finances, according to advisers.
More than three-quarters of UK advisers (77 per cent) said clients were now asking 'What happens if I die?' and 'Have I done enough to provide for my family?.'
James Beaumont, head of multi asset solutions at Natixis, said: "Financial professionals are adapting their businesses to focus on more than just asset allocation, instead focusing more widely on demonstrating value.
"On top of this, financial professionals are having to manage anxious clients and temper expectations to avoid emotional selling decisions. They must work hard to keep clients grounded and focused on things that they can control, such as their expectations."
When looking to add new clients more than half of financial advisers told Natixis they were segmenting their prospects by age: 93 per cent of UK advisers were targeting individuals between the age of 50 and 60 and 86 per cent were focused on those between 60 and 65.
Referrals from clients have also been imperative as a way of growing business, with 91 per cent of UK advisers mentioning this.
Another 41 per cent believed success would depend on their ability to build relationships with next generation heirs.
Meanwhile advisers said they were also focused on improving access to technology, with client-facing apps and customer relationship management tools regarded as a critical step to ensuring success.
Here, the biggest barrier to entry was the cost of implementation, according to 45 per cent of advisers in the UK.
Overall, among all those polled, advisers were less likely to see other factors such as streamlining their client base (25 per cent) or succession planning (24 per cent) as critical to their success.
Meeting demand for crypto (16 per cent) was at the bottom of their list of success factors, because professionals saw it as out of their area of expertise.
Though, as Natixis cautioned: "Financial professionals may want to learn more, as a growing number of clients are looking to invest in digital assets."
carmen.reichman@ft.com
