Empowering and building clients trust through education

Financial education can also strengthen the bond of trust with a client, leading to a more successful and fulfilling relationship.

Within your interactions with clients, education can be a vital component in:

• building their awareness and comfort with the key concepts you discuss and the recommendations you make
• building their trust in you through the transparency you provide
• providing the ability for them to improve and question their own knowledge, which will assist you as your relationship – and the complexity of topics and advice you provide – also deepens.

Understanding the needs of your clients

For financial education to be effective, it is important for you to gauge the learning traits and needs of your clients, as well as develop an awareness of their financial knowledge, biases and concerns.

Educating your clients can occur in a number of ways, including:

• through one-on-one discussions
• through formal seminars and/or events that you (or a third party) may offer
• through the guidance that you provide, including the explanation of materials, concepts or decisions
• through providing them with access to tools, calculators, or information that they can use, including websites and relevant articles.

It’s also important to remember that a client’s learning preferences, biases and experience will likely differ from your own – meaning you may need to adapt how you provide education to others.

Empowering your clients through education

When you give clients access to educational resources and insights, you’re also giving them the knowledge they need to understand:

• key financial concepts
• investment strategies and products
• consideration and the weighing up of options
• any potential risks.

This not only helps clients to make informed decisions now about their financial goals, risk tolerance, and preferences, but in the longer term can help them build awareness, engagement and resilience should circumstances or events change.

Transparency and informed consent

Helping to develop a client’s financial education can also provide the broader benefit to your relationship with them by building trust.

When your clients feel they have been provided with the information necessary to make and understand a decision, it shows that:

• you’re committed to being transparent
• you’re displaying your commitment to their understanding, engagement and awareness, and ensuring their needs are met
• you have their best interests at heart.

All clients are not the same and some may seek further information or ask more questions. Encouraging this behaviour can only help to deepen your relationship with them.

Education as a journey

The financial education you share with your clients can be an ongoing and developing journey and you can show your commitment through regular updates, which might include:

• industry trends, research and product developments
• changes in regulations – and any opportunities or considerations that they present
• market awareness and investment opportunities
• access to third-party events and support.

We are here to help. Learn more about how we can help you build trusted relationships with your clients by speaking to a Business Development Manager today.