With fintech now dominating the world of finance more than ever before, investors this year will have access to all types of highly-vetted, quality deals. In fact, fintech is one of the leading reasons why there’s been a tremendous spike in institutional quality investments that are now flooding the marketplace, and, even driving millions of dollars into the funding arena, from investors across the entire economic spectrum.
However, even with all of this funding activity, many investors are still left wondering about which deals are truly viable, and, about what platforms they can actually trust. That’s why cultivating a spirit of trust throughout your entire investor base should be at the top of your priority list, especially in 2018.
In fact some experts say that the “personal trust factor” may be the “make or break” deal for many finance organizations, since 47% of wealth advisory clients rank trust as their top criterion in selecting a financial advisor or investment partnership.
With this in mind, here are some of the top trends that are being used to build trust among investors, that may pay off richly for your organization this year and in the years to come.
1. Make Education a Top Priority
This point is unbelievably important. The world of finance is constantly shifting, and it’s practically impossible for any given individual to stay completely up to date. (This applies to finance generally).
When you make education a priority among your investors, you position yourself to accomplish several things simultaneously. For one thing, you work toward establishing your own expertise and credentials within your field. This is the starting point of earning financial trust. Unless your competence is established, no further progress can be made with a prospective investor.
But prioritizing financial education is about more than just establishing your own credentials. When education becomes a hallmark of your modus operandi, you’re extending implicit goodwill to your clients and investors. Don’t merely educate someone on the potential benefits of an investment. Educate them on its context in the wider financial environment, how it dovetails with or departs from their risk profile, and so on.
Your efforts will communicate the degree to which you value your investors’ financial health. And that factor is paramount.
2. Get Connected
Up to 40% of investors use social media channels as significant sources of investment information. The gap between tech-savvy millennial investors and traditional financial advisers is continuing to grow more quickly than ever. But this trend may also represent an opportunity for advisers who are willing to embrace modernity.
With 48% of advisers using social media daily for client interactions, it’s becoming clear that investors are increasingly prioritizing multiple points of connection. The reasons include the practicalities of moment-to-moment convenience, the psychological appeal of access to advice, and more.
Many of your clients and investors going forward will no doubt be millennials. Comprised of over 92 million people, the millennial generation tends to heavily prioritize the integration of technology and finance. Broadcasting your technical savvy through multiple social channels could be a ticket to enhanced revenue in the coming year.
3. Make Content Marketing A Priority On Your Site
Content marketing is generally defined as the inclusion of blog posts, articles, and other educational content within your wider site. And if you’ve neglected this tactic until now, you may want to consider shifting course immediately.
Content marketing has the potential to be tremendously effective in terms of ROI, especially in a niche as complex as the investment world. Having an ongoing blog on your site, with relevant financial or investment content, can go a long way toward establishing your expertise and industry authority.
And revisiting our first point about the vital importance of education, a robust content marketing element on your site also shows that you genuinely care about the education and financial aptitude of your clients and investors.
Content marketing also has the potential to increase your search engine results and drive web traffic. This is because every page of content added to your site represents an opportunity to target new keywords relevant to investors, including long-tail keywords and other SEO tactics. Combine that with the elements of industry authority and expertise mentioned above, and content marketing has the potential to be a major professional asset if intelligently deployed.
4. Always Align Yourself With Fiduciary Standards of Conduct
Maintaining a fiduciary standard of conduct simply means that you assume the legal obligation to act in your clients’ best financial interest at all times and in all decisions. Shocking though it may seem, a fiduciary standard of care was not established until the mid-twentieth century, with the Investment Advisors Act of 1940.
The act legally requires fiduciaries to place their personal interests below those of their clients. This distinguishes a fiduciary from a stock broker, for instance, whose primary role is to facilitate the swift exchange of securities, as opposed to overseeing a person’s broader financial health.
Proactive alignment with fiduciary guidelines and standards can speak volumes to clients and prospective investors. It represents an opportunity to show solidarity with your investors, and a chance to show that their long term wealth matters to you just as much as it does to them.
When it comes to an individual trusting their hard-earned money to the management of another person, few factors matter more than trust. This is especially true among millennial investors, who are increasingly educated and technologically connected.
By prioritizing your investors’ financial education, leveraging social channels, and integrating content marketing into your site, you can potentially reap rewards in the form of increased trust and exposure that can keep investors loyal to your organization for years to come.
But whatever else you do, remember the importance of maintaining a fiduciary standard of care for your clients. The knowledge that you are legally obligated to place their interests above your own could work very powerfully in your favor.
Do you have any questions? Speak with an Investor Relations Representative.
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