By David Gwyther, business development director at Butterfield Mortgages Limited
Those of us involved in the financial services industry know all too well the cataclysmic effects of Covid-19 on working culture.
No matter the size of your firm, bank, or financial planning office, we’ve all had to quickly adapt to the shifting demands of clients during the “new normal”. This transition has been difficult for some and easier for others.
Social distancing requirements means the majority of work in the financial services sector is being handled remotely, generating numerous obstacles for firms to overcome. Ensuring that everything from due diligence checks, to customer engagement and the releasing of funds can be handled online remains vital for groups who wish to stay operational during the pandemic.
Perhaps a bigger issue, however, is the breakdown of physical interactions with clients and the rise of video conferencing as a means of client engagement. Naturally, we have to question whether the transition to online avenues of communication symbolises the beginning of the end of physical engagement with customers.
Zooming into 21st century
Before anyone had ever heard of Covid-19, virtual telecommunication tools were seen as something of a last resort method when it came to conversing with clients. It was only really seen as a useful tool if facilitating a meeting or presentation that included participants from various locations.
Now, no matter the industry or sector, online conferences have become a key part of everyone’s daily work schedule.
Obviously, we should be thankful that such tools exist and allow for the continuation of work without having to be physically present. The shift towards working from home has allowed urban areas to massively cut down on the rate of Covid-19 transmissions, as well as lessen the contagion risk for those reliant on public transport, etc.
But with UK Covid-19 case numbers on the rise, and working from home seemingly set to remain the norm around the world, the drawbacks of such tools have become more apparent for those who work with high net worth individuals (HNWIs).
Trust and confidence abound
Those who have previously worked with either HNWIs or ultra-HNWIs understand the importance of relationship building. Those who are able to build confidence and trust through transparent relationships are the most successful when it comes to meeting the needs of wealthy and ultra-wealthy.
As someone who regularly assists HNWIs in navigating the UK’s prime property market, I’m familiar with the level of trust and confidence needed when engaging with this type of client. This is not something that can be accomplished overnight; rather, it necessitates an extended strategy of establishing trust and demonstrating one’s capability to handle the client’s financial needs over a long period.
This is not easily done over a webcam. Before Covid-19, communication and client engagements were employed during office meetings or social occasions. Now, with almost all such occasions indefinitely postponed, virtual solutions have become the only way to carry out such functions.
David Gwyther
This, in my mind, provides only a temporary solution. I have spoken to many financial services professionals and they all agree that there is some innate quality to physical meetings that cannot be replicated through video conferencing solutions. Establishing the level of trust needed to potentially build future client networks requires a regularity and informality that’s especially hard to achieve via virtual means.
Exploring alternate solutions, and other ways to technologically engage with clients, therefore, will become a key mark of innovative financial services companies in the months ahead. Whether through discovering hidden gems within the existing telecommunications market, or by creating one’s own in-house solution, those able to effectively combat the risk of “Zoom-fatigue” will be streets ahead of other firms who’ve only just about managed to adapt to the “new normal”.
If done successfully, such firms may be able to figure out how best to successfully engage with HNWIs in the age of Covid-19. Given the volatile and uncertainty experienced this year, there has never been a higher demand for astute financial advice and services; especially among HNWIs.
Though I’m still looking forward to the return of physical meetings after the pandemic has subsided, the age of videoconferencing is by no means over just yet; so it behoves us as an industry to ensure we never become stagnant or complacent in our practices.
Butterfield Mortgages is a London-based prime property mortgage provider with a particular focus on UK and international HNWIs. The views express herein are those of the author, and do not necessarily reflect those of the Butterfield Group.
