The ‘exchange of value’ (e.g. relationship drivers between buyer and seller) in the investment industry used to be straightforward:  financial advisors were the de facto experts providing investment advice and ideally, positive returns, in exchange for payment from the investor in the form of fees (explicit or otherwise). This generally led to relatively stable, unquestioned relationships for the longer term.

 This dynamic is changing, rapidly.

 Investors, particularly younger ones, are technologically-savvy, highly informed, and more aware  than ever before as to their options. They are not interested in their parents’ approach to investing, instead seeking out the relevant financial solutions and advice that fit their needs anywhere, anytime and all the time. That is their reality and their expectation.

 Advisors who intend to attract and keep the newer generation of investors need to rethink and adapt their exchange of value:

• Success: Do you understand their goals at every lifestage and what it takes to be successful in accomplishing these (including leveraging technology)?
• Effort: Are you making the achievement of these goals frictionless and easy?
• Emotion: Is every interaction with investors a positive experience where you are learning more about their needs and wants to continuously enhance the exchange of value?

Each of these questions should be addressed not just by advisors but by the financial institutions that support them. The opportunity for all stakeholders to attract and engage new investors is enormous, but that requires moving beyond the status quo to rethink the exchange of value.   

Tags: Financial Services, Industry