Servicing clients who do not meet the advice threshold is an age-old dilemma for advisers, writes Izzy Neil, head of business development at Wealthify.
With the cost of living crisis and inflation at a 40-year high, it is likely people will have less disposable income and therefore less money to invest.
No matter your advice threshold, you will no doubt encounter many clients through your business who do not meet it. That is not to say, however, that they will not have the money to invest with you in the future.
At various points throughout your career, you are going to be faced with a decision – continue servicing a client who is unprofitable or send them elsewhere. That is where robo-advisers come in.
By partnering with a robo-adviser, you can build great relationships with clients. You can introduce a simple digital solution that meets clients’ needs today, through a fully managed and diversified portfolio.
Offering a service early in a clients’ asset accumulation journey builds a trusted relationship that you can re-visit as their needs and assets develop, while generating revenue for your business in the meantime.
During our time in the market, we have built some strong adviser relationships, but we know some still see us as competition.
On the contrary, we are not here to replace advisers where they are needed, and we are not trying to win customers who would be better off with an adviser.
Instead, we are here to serve people who are not yet ready for advice. When it is clear a customer needs advice, we recommend they speak to a financial adviser.
Whether it is to serve low value clients you have paid to acquire, clients’ family referrals or existing customers that now fall below your threshold, robo-advisers can be a great option to support the customer, nurture valuable relationships and grow your business efficiently.
This article was written for International Adviser by Izzy Neil, head of business development at Wealthify.
