'Softer' skills are becoming more important for advisers to connect with their clients, according to a report.
The report from M&G Wealth and Aon, ‘The Financial Advice Paradox’, said empathy and trust have never mattered more in the industry.
The report was developed in consultation with Aon's occupational psychologists and included interviews and focus groups with advisers from M&G.
Ross Liston, chief executive of M&G Wealth Advice, said: "Providing financial advice is a deeply personal process and, increasingly, it centres on the ability to build trusted relationships and put each client’s unique priorities and circumstances at the root of all decisions.
"The advice process has evolved from focusing on talking about money to better understanding a client’s sense of financial wellbeing and giving them the peace of mind that comes with having a plan in place and a professional working for them."
The report said there was a shift towards the interpersonal skills needed for advisers to connect with clients on a deeper level.
It said the role of essential 'softer skills' was likely to increase, as the conversation shifts from talking about money to talking about financial wellbeing.
The report said these are: "The qualities of being able to connect with people, understand what really matters to them, and adapt their approach accordingly for a positive client experience."
It also found key to closing the advice gap is for greater representation across the industry and deeper understanding of clients’ needs and to better connect with the growing number of people who need financial advice and build meaningful, long-term relationships with clients.
M&G Wealth Advice said it will use the findings of the report to help its advisers develop their skills through training and additional support.
Katherine Conway, head of inclusion at Aon, added: "M&G Wealth is taking great steps to recognise and address how critical it is to bring different perspectives to their financial advice offering, ensuring they are well-placed to meet the future needs of a more diverse client base.
"Through investing in a tailored understanding of the skills that drive future success, they have a fantastic springboard for really impactful adviser development and hiring.”
tara.o'connor@ft.com
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