This article revisits the importance of trust as a central quality of what wealth management, when done well, should be. The author of the article is founder and CEO of a business founded in 2017.

There is a kind of “X factor” that successful, revenue-raising and client retaining relationship managers bring to the job, and they cannot be boiled down into a simple formula, which might suggest that AI cannot provide a workable substitute. Wealth management, even in this increasingly digital age, is a people business, even if technological marvels enable firms to scale up, build mass customization of services and deliver news and analysis in new and arresting ways.

A firm that says it is taking steps to push wealth management forward is Canada-headquartered Wellington-Altus, a relatively new kid on the block. In this article, Shaun Hauser, its CEO and founder, takes a brief look at the sometimes indefinable but essential components of great wealth advice and work. (Here is an interview this news service did with Hauser back in March this year.)

The editors of this news service are pleased to share this content, and urge readers who want to respond to jump into the conversation. Remember that these guest articles are designed to open up discussion rather than being the “last word” on any topic. To respond, email tom.burroughes@wealthbriefing.com and amanda.cheesley@clearviewpublishing.com

While the wealth management industry has evolved significantly over the past decade, one fundamental aspect remains unchanged: clients prioritize trust when selecting an advisor. A recent YouGov survey highlights this, revealing that 60 per cent of Americans consider trustworthiness the most important factor in their choice of advisor. This concern is even more pronounced among higher-income individuals, with 68 per cent emphasizing trust as their top priority.

In other words, while performance metrics are important, an advisor’s true value goes well beyond numbers. At its core, what makes a great advisor is universal: it starts and ends with caring. Caring is essential for building trust – without one, you can’t have the other. Building trust involves various approaches and stages, especially in addressing clients' emotional needs and their desire for financial peace of mind, which is ultimately what they want most.

A primary concern for clients today is: “Am I going to be OK?” Regardless of their wealth, all clients worry about their financial security and that of their families. This emotional concern fuels their need for a trusted advisor. The most effective advisors excel at alleviating the anxieties clients have about the future. To be successful in this, advisors must know their clients on a deep and personal level, which is achieved through meaningful conversations.

Earning trust
It seems simple, yet strong communication is essential for building trust and maintaining long-term client relationships. Despite this, many advisors still struggle with it. A survey by Financial Advisor Magazine found that 72 per cent of advisors reported that clients had fired a previous advisor for failing to communicate in a timely manner.

In a trusted profession, overcommunication is impossible. Although it may seem straightforward to "communicate more," a lack of a solid communication strategy can lead to client disengagement. Frequent updates strengthen trust and relationships. While this concept may seem simple, its implementation can be challenging; nonetheless, it should remain a top priority.

Even more important is the ability to overcommunicate during times of market volatility and investor fear. Providing steady, calm advice during economic chaos is where advisors can add the most value. In our industry, the reputation of a financial advisor is earned not only in good times, but even more so in how we manage the difficult ones. 

An advisor’s “Je Ne Sais Quoi”
On a personal level, every client is unique. What one person seeks in an advisor may differ from what another looks for, which explains why some people connect with certain advisors while others do not. This is also why advisors should stay true to their core identity and not get lost in the industry. Ultimately, an advisor’s “je ne sais quoi” is what sets them apart and can help them grow their practice.

The future
Of course, as AI continues to revolutionize industries and data becomes increasingly pivotal for long-term success, advisors must stay ahead of technological trends to remain relevant. Technology excels at saving time on tasks like paper processing and data analytics, but it can never replace the human element in our business. The best advisors excel at building trust and addressing the worldwide client concern of, “Am I going to be OK?” because they genuinely care and communicate effectively.

About the author
Founded in Winnipeg, Manitoba in 2017, Wellington-Altus has grown to more than C$35 billion ($25.06 billion) in assets under administration. Serving as the founder and CEO, Shaun Hauser has over 30 years of executive experience in operations, advisor support, sales, and strategic growth. Under his leadership, the firm continues to revolutionize the industry in Canada, continuously setting new industry benchmarks, the firm says.