Drive is on to build an enriched client relationship
The outlook for the global asset management industry this year remains stable, supported by moderate growth prospects and a return of inflows into equity funds, says Moody’s Investors Service in a new report.
It notes, however, that the volume of regulatory reform initiatives presents serious challenges for the asset management industry over the next two years. “The reality of complying with increased regulatory oversight and reporting requirements will result in higher operating costs and management distraction for asset management firms.”
So how can the client reporting function respond to these challenges? Alan Hamilton, CEO at Equipos, will be leading delegates at our TSAM EU Client Reporting & Communications stream later this month through what he sees as the defining trends in client communications looking ahead and how the industry can retain a competitive edge, both by improving the client service while minimising costs.
An AdvisorBenchmarking survey from late last year offered an sight into how firms are already embarking on improving their client service and enriching the client experience. It reported a growth in more personal approaches to providing investment advice: client advisors reported they were spending more time directly with clients. The use of telephone calls to clients, for example, nearly doubled from 51% to 96% in the past couple of years, while in-person meetings increased from 59% to 93%.
That is not to say that advisors and their clients ignore more high-tech communications. Around 47% of respondents said they either use or plan to use social media in coming months. The main reason they give for not using social media is not its impersonal nature but a degree of uncertainty in navigating compliance issues (47%) and the inability, as yet, to measure social media’s effectiveness (27%).
Advisors need to continually ask themselves whether they feel they have communicated effectively with their clients. It doesn’t necessarily have to be time-consuming or high-tech. But it should be intelligent, personal and sincere. Above all though, advisor’s discussions should demonstrate it is the client who really matters, and an awareness that it is the strength of this relationship which is a prerequisite to investment success.