Embracing technology can help generate new business from existing clients

As the country enters plans for a phased return to “normal life”, a reality of virtual client meetings and online paperwork still exists for many advisers and will continue to do so for the foreseeable future.

In line with these changes, we have found there is a real consensus amongst advisers that this is not the time to maintain the status quo.

Instead, now is the time to identify improved areas of planning, new types of clients and strategies that could expand your business offering to new and existing clients alike.

Despite the challenges this unique situation has created, it has led to a number of important learnings for us all. One of these has been the universal embrace of technology.

This has enabled both advisers to build and develop relationships. However, these connections are not just with direct clients. They are also with clients’ beneficiaries and wider family networks.

Developing this immediate network can open up a host of new opportunities for advisers.

The value of relationships

Inheritance Tax (IHT) planning has long been centred around the relationship between the adviser and their client. Whilst this relationship is crucial, many advisers are missing out on considerable amounts of business by not being directly involved with what happens once the inheritance has been passed down. 

The baby boomer generation (the over 65s) are set to push up the average value of inheritances from £62,000 in 2017 to £91,000 by 2027. As a result, £5.5 trillion is expected to be passed between the generations by 2047. This highlights that the retention of funds under management can form a crucial part of business development. 

However, research has shown that up to 25% of financial advisers have no active retention strategy. 

Therefore, it is crucial that advisers expand their estate planning services beyond their direct client base. This will allow them to increase their funds under management. In addition, they could also gain meaningful relationships that generate further business down the line. 

Building relationships with beneficiaries  

Creating these connections will not come from a one size fits all approach. Research from Just Group indicates that beneficiaries from across the age groups will have considerably different plans for any cash windfalls they may receive. 

For example, 22% of over 55s plan to use their inheritance on home renovations. In contrast, just under a third of millennials would use theirs to just get on the property ladder. 

Regardless of age, these lump sums are vital and allow beneficiaries to make significant life decisions. These cash windfalls can help people accelerate their financial plans. These may have taken years to achieve otherwise. 

Therefore, it is vital for advisers to understand the varying objectives of each person. By doing this, they can tailor their service and best support the beneficiary. 

What this means for you 

Later-life planning can be a difficult subject for clients, their families and advisers themselves. This can include discussing the money that will pass with an inheritance or the topic of death itself. These conversations can be uncomfortable and so many choose to avoid them. 

However, as an adviser, you are in a unique position to act as a facilitator in these situations. This can be achieved by building relationships with entire families rather than just clients. Through this, you will be able to create an even greater level of trust by understanding each person’s specific needs. 

In a practical sense, there are two major factors cited as having a negative impact on younger client retention. These are convenience and distance. Your offices may be ideally situated for you current clients. However, their family are likely to have moved away from home and may not be able to visit in-person. 

Despite all the challenges lockdown has brought us, it has led to one very important improvement. 

Time to continue embracing technology

By adopting video calls and online paperwork during this crisis, advisers now have the experience and confidence to run meetings virtually.  

Utilising this technology allows the next generation to be involved from the earliest opportunity regardless of their location. This in turn means that a wider family financial plan can evolve from day one. As a result, every beneficiary can feel like they are an important part of the process. 

Building this connection not only helps improve trust levels between advisers and beneficiaries. It also increases the likelihood that these people will become directs clients of the future when they choose to start their estate planning process. 

Existing clients also have added peace of mind. This strategy gives them the security to know the people they care about most are being taken care. These beneficiaries will also have the knowledge to utilise their inheritance in the best way possible. 

Therefore, utilising technology to expand your network can be a great way to tailor your service to clients of all ages and increase your funds under management. 

How Stellar can help you tailor your services

Wealth preservation is at the heart of everything we do. 

We pride ourselves on offering a range of specialist services designed to protect your clients’ capital and create a lasting legacy. Our services are carefully constructed to not only support your direct clients but provide their beneficiaries with a number of options on inheritance. 

For example, the Stellar Income Inheritance Tax (IHT) Service carefully commits capital to a range of asset-backed trading sectors. These activities can in turn create a reliable income stream and the initial investment can qualify for full IHT relief after just two years. 

In addition, when the portfolio is passed down to beneficiaries, the recipients can choose to either withdraw the capital or keep the portfolio active in order to continue generating an income. 

Click the link below to watch our short introduction video to the Stellar Income IHT Service and find out how we can help you support both clients and beneficiaries in less time than it takes to arrange a Zoom meeting. 

Get in touch

At Stellar, we want to be transparent at every point of our service. This clear approach to legacy planning makes it easier to start creating a wider family financial plan that takes into account the desires of everyone involved. 

The Stellar Toolkit also has a range of resources designed to support advisers every step of the way in this new all-encompassing approach. From our video library to planning opportunities in the Inheritance Economy, we want to help you provide a holistic service to your clients. 

Now is the time to expand your services and increase your funds under management 

If you would like to find out more about our range of services and how they could work for you, contact a member of our Business Development team today on 020 3907 6984 or email us at enquiries@stellar-am.com.