How can financial advisors differentiate their offerings in a competitive market?

By Chad Smith , Director of US Marketing

Financial advisors all want the same thing—happy clients. The challenge, then, is how to make that happen. Is it through technology? Product offerings? A bespoke feel? Magic? Probably all of the above. Clients want it all.

Financial advisors are constantly tasked with proving their value to both current and potential clients and evaluating how to offer the best solutions in a fast-evolving market. This means offering something special, bigger, smarter, and more sophisticated than what they can find elsewhere.

At Sharegain , we provide an investing opportunity that enables this on all fronts. I’m talking about Fully Paid Lending. It’s a well-established practice in financial markets, yet advisors and retail investors haven’t had access to it—until now. Fully paid lending allows advisors to give their clients the opportunity to earn additional income on the securities they already own.

What makes fully paid lending interesting isn’t just that it can generate passive income for clients—though that’s certainly part of it. It’s a signal to clients that their advisor is in tune with what’s happening beneath the surface of the financial markets. It’s the kind of value that doesn’t show up in a quarterly report but leaves clients feeling like they’re getting more than they would anywhere else.

To help advisors better understand this opportunity, I hosted a webinar in partnership with the Investments & Wealth Institute. We covered how it works, its associated risks, who it’s suitable for, and how to assess the potential opportunity for their clients.

The webinar provided value both ways. Attendees asked insightful questions I hadn’t anticipated: How does fully paid lending work in qualified vs. non-qualified accounts, how is collateral managed and guaranteed, and what are the potential tax implications? The level of curiosity and engagement was palpable. While fully paid lending was new to almost everyone in the room, by the end 90% of attendees, felt confident in their understanding of this newly presented investing strategy.

The level of engagement showed a strong appetite for opportunities like fully paid lending and a clear desire to stand out by offering services that both delight existing clients and attract new ones.

When it comes to being a financial advisor these days, it’s not enough to be right. Research consistently shows that financial advisors who keep their clients happy by offering differentiated products and services outperform those who don’t.[1]

A study by Cerulli Associates[2] found that the percentage of investors seeking professional advice has grown from 35% in 2009 to 47% today. Meanwhile, the number of self-directed investors has plummeted from 41% to 24%.Furthermore, 63% of investors are willing to pay for advice today, up from 38% in 2009. What does that tell us? People crave expertise, yes, but more importantly, they crave trust. They want to believe that their advisor is attuned to the subtle market shifts and investment opportunities that would potentially benefit them.

Another survey by Herbers & Company[3] found that clients who work with a financial advisor report higher levels of happiness compared to those who don’t. The gap in satisfaction grows as clients accumulate more assets,highlighting the importance of offering personalized, comprehensive advice to ensure long-term client growth and satisfaction.

Financial advisors aren’t just managing money – they’re managing peace of mind. And that, in the end, is what keeps clients coming back.

If you would like to learn more about fully paid lending and how it can help you increase client satisfaction, then check out the Sharegain Advisor Center. You can also watch the replay of our webinar for free, earn 1 CE credit, and pick up a new trick for your advisory toolbox.

References

1. Quantifying the evolution of advice and its value to investors
2. 11 New Findings on the Rising Demand for Financial Advice
3. Research Reveals Major Shifts in Communication and Trust Between…