Advisers need to develop better emotional intelligence and empathy to meet the needs of clients, according to a new report from M&G Wealth and Aon.
The Financial Advice Paradox report highlighted a need for a shift towards improving interpersonal skills in order to ‘connect with clients’.
The research by occupational psychologists highlighted what they see as the growing importance of these skills in engendering trust and building deeper long-term relationships with clients.
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The report put forward a suggested ‘adviser future skillset’, which has been developed in consultation with Aon’s occupational psychologists. It was informed by job analyses, a series of interviews, workshops with senior stakeholders and focus groups with M&G Wealth Advice’s financial advisers.
The skillset includes recommended areas of focus for advisers across five areas: client, self, digital, connection and delivery.
The report also said that closing the advice gap requires the profession to continue to focus on greater representation across the industry, as well as a greater overall awareness and a deeper understanding of clients’ needs and priorities across the board.
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Ross Liston, CEO of M&G Wealth Advice, said: “We set out to explore how the adviser role has evolved in recent years to identify which behaviours and skills are key to success. This research pinpoints which skills are set to become even more critical to support client outcomes in the future and it majors on the softer skills.”
“Providing financial advice is a deeply personal process and, increasingly, it centres on the ability to build trusted relationships and put each client’s unique priorities and circumstances at the root of all decisions,” he continued.
“The advice process has evolved from focusing on talking about money to better understanding a client’s sense of financial wellbeing and giving them the peace of mind that comes with having a plan in place and a professional working for them.”
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Katherine Conway, head of inclusion at Aon, added: “M&G Wealth is taking great steps to recognise and address how critical it is to bring different perspectives to their financial advice offering, ensuring they are well-placed to meet the future needs of a more diverse client base.
“Through investing in a tailored understanding of the skills that drive future success, they have a fantastic springboard for really impactful adviser development and hiring.”
The full report can be viewed here.
