Financial planners take on finfluencers — Bessner-style

What financial advisors and planners provide isn’t the same as what finfluencers provide, Besser said. With finfluencers, prospective clients “are not getting somebody to help them figure out their goals [and] priorities, develop a path and then implementation,” she said.

However, to be able to pay for those services, prospective clients may have to start small. Young clients may not want or even need a full financial plan, for example. “You may want to start with some cash-flow analysis,” Bessner said.

When asked what the biggest hurdle is in serving younger generations, she said, “Listening and not judging.” Younger clients will “sniff out judgment a mile away.” For example, a younger client doesn’t want to be judged for spending money on Uber rides.

Also, when it comes to judgment, “don’t dismiss finfluencers or gamification,” Bessner told the virtual attendees.

During her presentation, Bessner identified several gaps in providing advice to younger generations — prospective clients between ages 30 and 50.

Younger clients don’t want to be serviced as their parents were, and don’t have the same trust in large institutions, she said. “They want flexible, hybrid tools,” as well as fee options.

On some factors — registration and certifications, for example — advisors and planners may outrank finfluencers. But younger generations may not understand the benefits of those qualifications, Bessner said. Further, finding a financial professional isn’t as easy as following a finfluencer at one’s fingertips.

Younger generations may also prefer the anonymity of finfluencers because, again, “they’re afraid of being judged,” she said.

Solving for the next generation

To close these advice gaps, Bessner urged advisors and planners to remember that they and their prospective clients are on the same side of the table. “Solving for them solves for you,” she said, because “Gen X and Millennials are growing their wealth faster than the baby boomers.”

She suggested advisors and planners put clients at the centre of their approaches: “Stop thinking about yourself in the middle and how you’re going to grow your business,” she said. “Start thinking about the clients and what are their changing needs.”

She also suggested advisors and planners change how they perceive the younger generations. “Don’t try and change them — that’s why they’re listening to finfluencers,” she said. Avoid making assumptions about prospective clients; instead, “when you meet each person, be curious,” she said. She suggested advisors and planners engage clients to “determine who they are as people,” beyond their financial circumstances.

Further, “meet them where their values are.” For example, maybe a client enjoys sports betting or plans to rent indefinitely. “Learn about what they’re doing and why,” Bessner said.

She also suggested that the younger generations are looking for a coach and cheerleader, not a teacher. “Be curious about what their goals are,” she said. But instead of asking clients specifically what their goals are — a difficult question to answer — she suggested asking clients what they’re working toward. (She also suggested using her big fat questions, adapting them for younger generations.)

Managing client expectations so that they align with clients’ projected progress is also important. “Remind them not to put too much pressure on themselves, expecting to catapult to their goals,” she said.

Then “cheer them on,” as you help them implement their plans.

Advisors and planners can also learn about finfluencers and refer clients to good ones. “Send them articles and podcasts,” Bessner said, which may help clients “identify their goals and work better with you.” Advisors and planners can also help clients understand the finfluencers’ credentials, she said.

Investment Executive and sister publication Advisor.ca were media sponsors of FP Canada’s annual financial planning conference.