4 tips to build and maintain client trust

Building Client Trust as a Financial Advisor

As financial advisors, clients trust us with their wealth. This is a profound, almost sacred trust. Money is possibility, and financial advisors with sound judgment can create possibilities for their clients. At the same time, financial advisors who lack judgment can diminish possibilities and even add to a client’s struggles. Everyone is aware of the stakes when they choose their financial advisor, and it is on the advisor to demonstrate they are up to the task and worthy of the client’s trust.

Of course, humans are emotional. Sound judgment alone is not enough to maintain trust. You could have the best investment strategies in the world, the most resilient portfolio possible, and still lose client trust by failing to return a call in a timely fashion or simply being radio silent for too long.

It follows that connecting to clients is of paramount importance. Here are 4 tips that can help you keep your clients trusting you.

1. Honesty Pays Long-Term Dividends

Mistakes happen. When you are responsible for a mistake, taking ownership of that responsibility is the right thing to do not just morally—but strategically. Finance is a space that, unfortunately, has no shortage of grifters. One thing grifters never do is admit to wrongdoing or fault.

If you made a bad investment decision or failed to accomplish something you said you would do, it is better to own it right away than try to spin it, ignore it, or bury it. Admitting fault shows strength of character, and though a client might be upset at a failure in the short term, in the long-term they will appreciate the honesty. Conflict, oddly, can build trust. Couples that never fight never tackle real problems, while couples that successfully navigate tension and conflicts enjoy long-lasting, healthy relationships. The same is true in advisor-client relationships. Own your mistakes, have concrete plans on how to fix the problem, and work through disagreements and tension honorably.

2. The Road to Client Trust Is Built on Checking In

Radio silence can create anxiety. Though most clients don’t want to be spammed with emails or feel stalked, they do want regular check-ins and some degree of accessibility. There are lots of ways to do this, and in our experience, monthly video updates have been the most effective.

E-mails and newsletters have their places, but video is an easy-to-opt-into, low-effort way for a client to see you making sense of the current moment. With my television background, I’ve found that video offers an easy way to express the work I’ve been doing. Some clients will watch right away and feel the connection to a human voice speaking directly to them; others will be comforted simply by seeing that I’ve taken the effort to put together a well-produced video to chronicle the moment and share the thoughts. Words on a page, like these, are effective for communication, but videos are personal. It is one thing to read someone’s words—it is another to witness them speak, think, and exist. That kind of personal touch and access builds trust.

I recognize that not every RIA has my television background, which is one reason my firm also offers a monthly service for FAs to handle all of the production details and work for you. Your job is to be a financial advisor, not a video producer. I can leverage my background expertise to help you do your job more effectively.

3. Don’t Forget to Be Human

As experts, we are prone to steamrolling with our expertise. It’s tempting to share what you know and demonstrate your value, but empathetic folks understand that listening more than speaking can build respect and trust. When meeting face-to-face or talking to a client or prospect on the phone, don’t just pitch your expertise—listen to their concerns. Take in information about their life. Absorb the details.

Remember, people live in a world full of automated messages. How many times have you had to call your health insurance company or reach customer support only to get a limited menu of responses, none of which address your specific issue? Or, even if you get a person on the line, how many times have they been reading a script and not really taking you in? I bet in every instance you longed to talk to a human who would listen to you.

Clients value that expertise, especially when it transforms their portfolios, but to truly build trust you need to listen to them and speak directly to their concerns and anxieties. Resist the temptation to steamroll and demonstrate your expertise. Let your clients tell you what they need from you.

4. The Ultimate Trust Builder Is Time

If you are listening to your clients, connecting regularly, and owning your mistakes when they happen, then over time even the most skeptical and quick-to-judge client will come to respect and trust you. Compounding returns in a portfolio create magic over time, and the same thing happens in relationships with trust. Demonstrate you are trustworthy and honorable, and the strength of the client-advisor bond will compound over time.