How client portals can supercharge the advisor-client relationship

September 29, 2023 12:56 PM

FPA President James Lee; Emily Koochel, head of financial wellness programs at eMoney Advisor; and Linda Sikora, marketing research manager at eMoney Advisor speak during the 2023 FPA Annual Conference.

When it comes to financial planner technology, that client portal sitting in your stack may be more powerful than you think.

During the Financial Planning Association's annual conference this week in Phoenix, Arizona, the organization released the findings of new research conducted alongside eMoney Advisor to understand the impact technology is having on client relationships within the industry.

FPA President James Lee said during a Thursday presentation that the development of technology solutions has grown exponentially in recent years to serve the needs of financial planners and their clients. And as technological capabilities evolve, so does the potential to use these tools to forge stronger bonds with end clients.

But the study emphasizes that access to technology alone won't cut it. What matters most is how financial planners utilize client portals and other tools at their disposal to drive better outcomes.

"As a practitioner myself, I endeavor to realize these objectives every day. And as this research shows, the use of technology, especially client portals, is leading to greater success in those areas. Imagine being able to reduce your clients' financial anxiety. That's exactly what happens when we integrate client portals effectively," Lee said. "Clients gain easy access to their financial information, and ongoing communication through client portals makes them feel more in control and at ease.

"This isn't just about technology. It's about the future of financial planning. Client portals and technology in general are now integral to the modern financial planning practice."

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The study, which polled 849 financial planners of different backgrounds and business models this spring, demonstrates that the value of a client portal extends beyond operational efficiency.

While many financial planners use the technology for streamlining processes, those who leverage client portals effectively realize a range of benefits on their clients' financial and emotional well-being.

Trust, anxiety, motivation, referrals and loyalty are all impacted when portals are used to their full potential, according to the study.

"At eMoney, we've known that technology transforms the planning experience for quite some time. However, this study identifies the particular ways in which a client portal strengthens trust, motivation, loyalty and other key components of the planner-client relationship," said Emily Koochel, head of financial wellness programs at eMoney Advisor. "It's clear that consistent use of a client portal is an action all financial planners can take to drive better outcomes for their clients and their businesses."

Scroll down to check out some of the key takeaways from the study released during day three of the 2023 FPA Annual Conference, alongside additional insight from Koochel and Linda Sikora, marketing research manager at eMoney Advisor.

Demand for technology is up

In 2019, eMoney asked financial planners across the industry which technology-related attributes they considered "must haves" for the ideal financial planning professional. When asked the same question this year, scores for every "must have" at least doubled.

The top three attributes were the ability to leverage digital channels for client communications, using technology to support the decision making process and adapting the use of technology to meet client needs.

"COVID may have been the catalyst. However, technology is here to stay. I can tell you, too, in our Summit research, we have the benefit of relativity. We looked at financial planners in the market in general, and we also looked at end investors. So we measured everybody on these same outcomes," Sikora said. "Financial planners as well as end investors are looking for the same things from their technology. They want to be able to directly communicate with their financial planner. Why? It helps not only advisors and helps their clients make more

informed decisions, but the clients also feel like they get a more holistic view of their finances."

Reduced financial anxiety

The research found that 74% of "portal power users" — defined by eMoney and the FPA as planners who use a client portal, believe technology is important and having more than 40% of their clients actively using the portal — indicated that their clients are experiencing less financial anxiety.

Having easy access to their financial information and ongoing communication with their financial planners through the portal makes clients feel more in control and at ease.

Koochel also said that proper portal usage can do wonders when it comes to delivering a personalized planning experience.

"As we talk about financial anxiety, I don't know that there's anything more personal that you can touch on with somebody than financial anxiety, stress and worry. Now, while each one of those are slightly different by definitional terms, what we know is financial stress across the board impacts everybody. It does not discriminate," she said. "So if we can use something like a client portal that allows us to engage in hitting on some of the most intimate topics that each one of us have, and arguably the most personal topics — because my version of stress is different than your version of stress — that's incredibly personal."

Increased client trust and motivation

About 80% of financial planners identified as power users reported a substantial increase in client trust. Clients who engage with these portals feel more confident in their financial decisions and the guidance their planners provide.

Among power users, 68% noticed a significant boost in client motivation. These planners say the portal's interactive features and real-time capabilities help clients stay engaged with their financial goals and progress, leading to greater motivation to achieve them.

Client referrals and loyalty

Sixty-seven percent of power users reported increased client referrals. Satisfied clients who benefit from the enhanced communication and transparency provided by client portals are more likely to recommend their planners.

The research also found that 63% of these planners observed an increase in client loyalty. The ongoing engagement facilitated by the portal fosters stronger relationships between planners and clients, resulting in higher client retention rates.

Higher client satisfaction

More than half (55%) of financial planners surveyed reported that their clients' satisfaction levels had increased significantly since implementing client portals into their practices.

The research underscores the pivotal role that client portals and other technologies will play in transforming the delivery of financial planning advice in the years to come. It further illustrates that technology and, more specifically, client portals are table stakes for financial planners.

The study found that 64% of planners expect to increase technology spending within the next two years, and 34% expect to increase spending by more than 11%, focusing on achieving higher client satisfaction, increasing client engagement and realizing improved workflow automation.

"There's been so much progress in the financial planning profession, and eMoney is proud to contribute to its rapid evolution. We are excited for what we have to offer planners, especially with new updates coming soon to the eMoney client portal," Koochel said.