The human foundation of the adviser-client relationship
Whilst having technical knowledge is crucial to a career in financial advice, this professional suggests that being an emotional rock to clients is the top priority.
Mitchell Harrison is an associate adviser at LBW Business and Wealth Advisors, a holistic wealth advice business.
On a recent Financial Planning Association of Australia (FPA) podcast, the adviser shared how taking away a client’s financial stress was one of the most rewarding aspects of the profession.
“People really downplay the human element of being an adviser, which is the part that I love,” he explained.
In moments where clients expressed fear or stress regarding volatile market conditions, Harrison described the adviser as a comforting force and emotional support to that person.
His words echoed research from Vanguard, which recently surveyed more than 1,500 advised clients. The data found that having an adviser could increase a client’s peace of mind and mental wellbeing by over 50 per cent.
The discussion came to a tipping point following the release of the Quality of Advice Review, which found that human advisers were likely to become intermediaries between the client and digital advice algorithms.
However, Harrison emphasised the importance of human interaction in the adviser-client relationship, with many financial planners supporting the same clients for multiple decades.
“Those relationships are downplayed or underestimated, with how close people get and how much emotional support, empathy, kindness and your ability to listen really play into your role.”
He continued: “As an adviser, you need to be trustworthy and you need to genuinely care”.
Having the opportunity to meet a variety of people from diverse backgrounds was another enjoyable aspect of the role, making every day different from the next.
Moreover, Harrison noted that simplifying complicated financial concepts to clients was a challenging yet satisfying part of everyday meetings.
“Your job is to explain highly complex ideas that you might have spent five years at university learning and explain it to someone who might have never finished high school.”
Whilst supporting clients through their financial journey had numerous benefits, the adviser recognised one particular downside.
“Advisers get a lot of credit for being the face of the business, which can be really good and rewarding, but there are also times where parts of the process might not work out perfectly even if it’s not your fault,” he said.
If an administrative mistake was made by a paraplanner or client service officer, advisers needed to learn to rectify the situation with clients.
“You are the one that has to take that blame because you are the person the client speaks to,” Harrison added.
AUTHOR
Jasmine Siljic
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