Want the one thing robo-advisors cannot imitate?

There are a number of positive attributes that come with a robo-advisor, and it is not news that human advisors need to incorporate financial technology solutions into their planning services. However, there are some things only a human advisor can provide to clients.

A friend of mine was going into probate with his parent’s assets and was in the process of interviewing lawyers. Not only was he in a very difficult situation losing a loved one, but now he had to handle the complexities of their estate. Countless people go through this each day and are put in the situation of having to find someone quickly to help. He is someone that is extremely smart, but was just unsure on how to choose the best firm to fit his needs. He did countless hours of research and took a day to go meet with some of the top firms in the city. The conversations were typically about how many offices they had, how many lawyers at their firm had top degrees, and how long they have been in business. He was indecisive on who to choose.

Then on his final appointment of the day the law firm sat down with him and asked, “How much do you know about probating a will?” He said, “Nothing.” They spoke about how they are here to help through the entire process and he should not worry. There was no mention of their impressive education or cases won. He was taken aback. The lawyer gave him a packet with a comprehensive outline of the steps involved, what he needed to do immediately, and what he should forget about for the time being because it was not urgent. The packet also had all of the numbers of governmental bodies he needed to notify even though this had nothing to do with legal work.

This information was not only free, but extremely helpful. The lawyer naturally got the business and was retained. Why did he get the business above the others? He built confidence and trust by demonstrating that he knew what information was most relevant to his potential client, even though some of it had nothing to do with the law. His generosity and willingness to help earned my friend’s trust quickly. He earned that relationship by showing that he understood his client’s perspective and what he was going through.

Trust is an extremely powerful thing that drives consumer buying decisions every day.

Clients want to know if you will answer their questions directly and truthfully even if it means losing a chance at their business. As a client you want to know that they will do the right thing and will put your needs first. As we see a world where digital interaction is growing, we are losing the face-to-face interactions that are essential for building trust and establishing a relationship. The competitive advantage of an advisor over technology is the empathy that they bring. Listening and understanding the client’s situation and perspective can create a lasting feeling of security that their financial future is in trusted hands. People make buying decisions based on emotions rather than logic. My friend could have easily just called the top ranked firm and went with them based on their credentials, but he did not. He went with the other firm because they understood how this not only effected his parent’s assets, but his life in general. Your finances are greatly tied to your life events and decisions as well. Building a trusting relationship where that person works with you on some of life’s biggest decisions speaks volumes about how important their role as their financial advisor is in their life.

As Theodore Roosevelt once said, “Nobody cares how much you know, until they know how much you care.”

This rings true in the relationships you develop with your clients because they want someone who puts them first and shows it. So do not fear the robo-advisors. They have the power of technology, but so do human advisors with the added value of human emotion, trust, and empathy. “Trust is something that happens at an individual level and it is not scalable.” — Simon Sinek.