December 15, 2016 // By Magenic
In today’s market the most successful brokers are no longer simply the most knowledgeable or the most profitable. They must also be the most trusted.
To provide comprehensive, accurate financial advice, brokers need a more holistic view of a client’s financial life. They need to understand a client's corporate retirement accounts, insurance policies, money market, checking and savings accounts, credit card usage and home mortgage balances. However, with data security concerns at an all-time high, consumers are increasingly hesitant to hand over their personal information.
Research appearing in the Harvard Business Review shows that 97 percent of survey respondents reported they would be concerned with companies or the government acquiring their personal data because of potential misuse. Not surprisingly, identity theft and privacy issues were reported as the top two reasons for concern.
At the same time, however, the research also finds that consumers are more willing to share personal information and/or data if they can immediately see the benefits in doing so. Proof of this is readily apparent in other industries. For example, most consumers are pleased their smartphone collects their personal information and call history because it uses the information to develop a favorites list. At the same time, Google’s new predictive application, Google Now, uses profiling data — including a customer’s email, calendar and location — to work as a personal assistant reminding the user when they need to leave to meet appointments and providing other managerial assistance. And while this app collects a large amount of personal information, consumers feel the reward is worth the hand-off.
The message then for brokers becomes simple: Just as they already understand that collecting personal data will allow them to more accurately provide for their clients, they must now work to show these clients the benefits of this information sharing — in real terms.
Overcoming data challenges through technology
Overcoming the hurdle of data acquisition is just one of several topics covered in Magenic’s new whitepaper “Wealth management gurus upgrading IT to meet DOL challenges.” The piece explores the latest Department of Labor ruling regarding broker responsibility and offers solutions on how brokers can better use technology to meet DOL standards and the demands of their clients. You can find more insight on these issues by downloading the whitepaper today, so don't miss out. Your clients are waiting.