The pandemic has led to a profound shift in the way clients interact with their adviser, new research from abrdn has shown.
Nearly a third (31%) of advised individuals said they used remote advice channels for the first time during lockdown, with the largest shift seen among those aged 66 and above.
While lockdowns may no longer be in place, more than half (56%) of advised individuals are now happier to use remote advice channels, such as video calls, than they were before the first lockdown. Of those, 57% said their willingness was driven by greater familiarity with digital tools like Teams and Zoom, while 47% said they liked the convenience and efficiency it offers.
Going forward, nearly three-quarters of clients (73%) would like an element of remote advice from their adviser, with just a fifth (20%) preferring only face-to-face interaction.
Noel Butwell, CEO, adviser platforms at abrdn, said: “The pandemic has accelerated a shift away from the traditional formats of giving and receiving advice.
“While in the past face-to-face meetings were the norm, these findings show the majority of clients now want to use tools like video calls for consultations and will be seeking ongoing flexibility in how they interact with their adviser.
“Advisers are no strangers to tailoring their approaches to meet clients’ specific needs, and we know the advisers we work with are continuing to offer a remote advice service for clients who want it.
“This is a win-win for everyone. Clients benefit from bespoke interactions that suit them and their schedule, while the speed and convenience can help advisers increase capacity and drive efficiencies by cutting down on factors like travel time and cost.”
Butwell said the trend for remote advice could also help to tackle the advice gap, increasing the accessibility of advice by making advisers easier to reach for clients who are time-poor and enabling advisers to maximise the number of clients they can support.
Alex Chappell, investment manager at DB Wood, commented: “We’ve seen our clients embrace the use of technology during the pandemic, and for a lot of them, that is how they want to continue to interact with us. Everyone has different needs and we have always offered an advice service that is flexible and adaptable to individual requirements.
“But there is no doubt more will continue to use technology for the most part when dealing with us. We have also seen that for some, the perfect solution is a combination of face to face and online, though irrespective, we will always offer the service our clients want.
“The upside to more online interaction means we have more time for our clients new and old.”
Alongside a change in attitudes to remote advice, abrdn’s research also revealed that more than a third (35%) of clients now contact their adviser more frequently than they did before March 2020.
When asked why, clients pointed to more complex financial needs (47%) and a greater appreciation as to the value of advice (56%) – the latter of which rose to 61% for clients who said they currently speak to their adviser more than once a month.
