Using Data and Reviews to Strengthen Client Relationships
It is no secret that building strong client relationships is essential for the success of any wealth management firm. However, with increasing regulatory demands due to regulations such as the Consumer Duty, financial advisers must demonstrate they are acting in their clients’ best interests by regularly reviewing their financial circumstances and providing appropriate, tailored advice.
This article outlines how firms can use client data and structured reviews not only to meet compliance requirements but also to uncover opportunities to deliver value, foster trust, and enhance long-term relationships and potentially increase revenue.
Masters of One is a collective of independent experts, each a master in their field, offering no-nonsense consultancy services to the financial advisory and wealth management sectors. We help firms build stronger client relationships through strategic, data-driven approaches designed to meet both client needs and regulatory standards.
1. Know Your Client Through Regular Reviews
Understanding your clients thoroughly is at the heart of effective financial advisory. The FCA’s Consumer Duty (FG22/5) emphasises the importance of delivering outcomes that are in your client’s best interests. To ensure that your advice aligns with these principles, it’s essential to conduct regular, structured reviews of your client base. Indeed, this is echoed within MiFID II where the expectation is that a firm reviews the suitability of advice at least every 12 months. These reviews allow you to assess their financial goals and ensure that the solutions you offer remain relevant as their circumstances evolve.
A quarterly or semi-annual review process can also help you identify trends or significant life events, such as a promotion or a shift in financial priorities. Armed with this knowledge, you can deliver timely, tailored advice that reflects your client’s evolving needs, strengthening trust and transparency in the process.
If you need help organizing and analysing your data, Masters of One’s specialists can assist you in designing a data-driven review framework.
2. Leverage Client Data to Uncover Opportunities
Data-driven insights are a powerful tool in financial advice. Rather than viewing data simply as a compliance obligation, advisers can use it to improve the quality of client interactions. Predictive analytics can help identify opportunities where adjustments to financial plans may be needed, allowing you to guide clients towards decisions that benefit their financial well-being.
If your firm lacks advanced CRM capabilities, even basic tools like Excel can be utilised to analyse client data and spot trends. By tracking patterns in investment behaviour or financial decisions, you can identify moments when a client may benefit from a review or a tailored recommendation. Regular updates and analysis of this data will help ensure that your advice is both timely and aligned with your clients’ objectives.
For instance, noticing a client nearing retirement might prompt a discussion on pension drawdown options or revisiting their risk tolerance. These insights allow you to deliver value that strengthens the client relationship while meeting regulatory obligations.
3. Personalise Onboarding While Ensuring Compliance
The onboarding process is a crucial opportunity to set the tone for your client relationship. While personalisation is important, it’s essential that all recommendations made during this stage are in line with FCA regulations. Consumer Duty requires that all financial advice be suitable, transparent, and fair.
By embedding compliance checks into the onboarding process, you can ensure that your client’s needs are met while adhering to regulatory standards. For example, offering estate planning services or investment opportunities should be based on a thorough understanding of the client’s risk profile and long-term goals. This approach not only fosters trust but also safeguards your firm from the risks of mis-selling or inappropriate recommendations.
For guidance on aligning your onboarding process with compliance standards, Masters of One’s compliance experts are ready to assist.
4. Foster a Collaborative Approach
To build strong, consistent client relationships, it’s vital that everyone in your team is aligned. From relationship managers to financial advisers, a collaborative approach ensures that all touchpoints with the client are seamless and focused on delivering value.
Regular team meetings and data-sharing practices can help your firm deliver a unified, client-centred experience. For example, while one adviser might focus on a client’s pension, another could provide insights into estate planning, giving the client a holistic view of their financial health.
Conclusion
Building stronger client relationships in today’s regulatory environment isn’t about selling more products—it’s about offering the right solutions at the right time. By leveraging client data, conducting regular reviews, and ensuring compliance with Consumer Duty, financial advisers can strengthen trust and deliver ongoing value that keeps clients engaged and satisfied.
Who are Masters of One?
Masters of One (MOO) is not your typical consultancy. It’s a collective of top-tier professionals, each an expert in their field, offering practical and no-nonsense support for financial advisors and wealth management firms. With services spanning Change Management, Compliance, Data, HR, Marketing, Outsourcing, Technology, and Training, MOO helps firms streamline operations and drive growth without the fluff or complexity you might expect from larger consultancies.
The experts at MOO have dedicated their careers to mastering their fields, ensuring that your firm receives the highest quality of service without inflated fees or confusing jargon. Whether you’re managing transitions, navigating regulatory landscapes, or simply looking to improve your business operations, MOO’s straightforward approach is designed to help you achieve results.
About the Author – Lagom Consulting
This article was written by Lagom Consulting, a member of Masters of One, who is a specialist in helping financial services firms grow through tailored, actionable strategies. Our expertise in cross-selling and upselling techniques helps firms unlock the full potential of their existing client base while delivering superior value. Whether you’re looking to optimise your CRM, enhance team collaboration, or deepen client relationships, we’re here to guide you every step of the way.
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