Financial advisors are expected to be knowledgeable in various financial topics in order to construct personalized and comprehensive financial plans for their clients. However, in today's information age, detailed financial planning information and product knowledge are readily available online or from other advisors. What sets a good advisor apart is their ability to go beyond information. This is where a financial advisor's role as a trusted guide comes in.

Soh Xiang Jun, a three-year MDRT member from Singapore, believes the key to success in her field lies not just in knowledge, but in genuine curiosity. This is evident from the way she approaches financial planning with her clients.

Building a culture of curiosity

During client meetings, Soh tends to focus more on their life situations, instead of immediately diving into financial products. "When I first meet a client, the conversation will initially revolve around their personal lives (for example, social and family), work situation and dreams. After clients see that I am genuinely concerned about them in all areas and not just wanting to sell them a plan, [they are more willing to trust in me]. In turn, this also helps to bring about repeat and referral business. The more interested you are in your client, the more they will help your business grow," she shared.

Soh added, “Our profession gives us the privilege to meet clients from all walks of life, which is a great opportunity to get to know more about their world.” With that mindset, she encourages fellow advisors not to shy away from asking questions about their prospects' lives and backgrounds. Simple inquiries like "What do you enjoy about your work?" or "What makes you want to achieve this goal?", can be valuable learning experiences. “Every interaction becomes an opportunity for an advisor to gain a broader perspective. Even by admitting you might not know everything about [your client’s] world, such as saying ‘I did not know that, tell me more about how that works,’ you open the door to building rapport with them,” she noted.

Communicating complex ideas simply

Soh's curiosity about her clients' values allows her to effectively translate complex financial concepts into more readily digestible nuggets of information. Leveraging her background in healthcare, she provides relatable examples to help clients grasp the importance of insurance. For instance, she might compare the hassle of upfront payments without insurance to the ease of electronic claims processing with it. Another example would be breaking down the medical treatment journey, highlighting how insurance helps manage costs at each stage, from GP (General Practitioner) visits to specialist consultations, hospital admissions or surgeries, and even follow-up appointments and therapies.

"By drawing on my experience and knowledge, I can appear more confident, making it easier to build trust with clients," Soh explained. "For example, when my client was diagnosed with cancer, he and his family were understandably distraught. But as their trusted advisor, I reassured them their medical bills would be covered, and outlined the critical illness payout they would receive. My job was to also reassure them and give them the peace of mind to focus on recovery instead of just financial costs.”

When navigating challenges with clients, she believes it is also important to take time to understand why certain things happen the way they happened. “Throw 'I don't know' out of your vocabulary and reframe it as an opportunity to learn. Clients appreciate your efforts to find answers, instead of a simple 'I don't know'," she advised.

Adapting to different age groups

With a diverse range of clients, Soh also understands the importance of tailoring her communication to different client groups. She invests time into understanding the nuances of each age group, allowing her to identify patterns in their needs and concerns. For example, while the concept of hospitalization insurance is relevant to all ages, specific worries differ. Younger clients, less concerned with long-term health risks, might prioritize coverage for unexpected medical bills, like expensive scans. Soh addresses this by explaining how their hospitalization plan covers costs associated with hospital admissions, which could result from symptoms like headaches or stomachaches. This approach also applies to young parents worried about their children's health. Conversely, older clients with regular medical needs, like colonoscopies, would receive different communication, where she would emphasize more on preventive care coverage in their plans.

Aside from the different ways she conveys the value of insurance across various age groups, Soh also noted that different age groups respond more favorably to different communication styles. "With older clients, who have more life experience, I take a more respectful approach," she said. "For example, I might use phrases like 'as you know' or 'from your experience' to acknowledge their wisdom." For younger clients, Soh adopts a more informative and guiding role. "I provide them with advice and recommendations using phrases like 'most clients like you find this helpful' or 'it is highly recommended by experts' to build trust and offer relevant guidance," she explained.

Ultimately, curiosity about your clients is valuable throughout the advisor-client relationship. Just as it is important during the initial discovery phase, it is equally important in subsequent meetings. By cultivating curiosity, financial advisors can build stronger relationships with their clients and continue growing as an advisor, leading to better client outcomes.

Contact: MDRTeditorial@teamlewis.com

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Why curiosity is an important trait for financial advisors to have