It’s been a whirlwind of a year, particularly within the world of financial services.
A new UK government, multiple global elections, escalating conflicts, the ongoing AI revolution and, more recently, the Autumn Budget.
Financial markets are sensitive to uncertainty and change, so these events can have a real impact on investor confidence.
These last few months have shown me the vital role a planner plays in tuning out the noise for clients and protecting them from making emotionally-charged financial decisions.
I’ve recently been given the opportunity to attend more client meetings to support my journey to becoming a planner, which has been both an interesting and rewarding experience.
Spending time with clients has underlined to me that, while this is the foundation of great financial planning, it needs to be combined with pillars of monumental trust
I’ve been able to put faces to names, engage in client conversations, start to enhance relationships and see firsthand the difference our work can make.
As a paraplanner, it’s easy to get stuck behind the computer screen, fixated on the technical details of a financial plan. Attending these meetings connects you directly with the person on the other side, working towards their lifelong goals.
One of the most notable things for me, particularly during the period of uncertainty before the Budget, is the importance of emotional intelligence as a planner.
The value of actively listening, being able to put yourself in someone else’s shoes, empathise with their feelings, fears and motivations and then clearly communicate with them, perhaps involving a difficult conversation, cannot be overstated.
Developing emotional intelligence is essential, especially for younger trainees with less life experience to draw upon
In this way, we can support clients to manage their own emotions, overcome challenges and ultimately help them make the best financial decisions for their own circumstances.
It goes without saying strong technical knowledge is vital, but spending time with clients has underlined to me that, while this is the foundation of great financial planning, it needs to be combined with pillars of monumental trust – something which takes work and time to build but can be so easily broken.
Seeing this at play in meetings is really inspiring and speaks volumes about the talented and experienced planners I am lucky enough to be working with.
Are you being given opportunities to build those all-important interpersonal skills beyond your textbooks?
There’s an ongoing debate about whether soft skills should be a more formal part of a planner’s professional education. While some of the professional qualification boards offer related webinars or courses (and I was interested to read the upcoming launch of Invesco’s emotional intelligence training platform) this still seems to be an area of study largely down to the discretion of a firm or individual.
Developing emotional intelligence is essential, especially for younger trainees with less life experience to draw upon. It’s easy to become fixated on studying and passing your next exam, but are you also being given opportunities to build those all-important interpersonal skills beyond your textbooks?
It’s certainly an additional aspect for aspiring advisers to consider when reviewing their opportunities.
Alannah Kinsella is a paraplanner at Progeny
Two fundamental things to remember in terms of emotional intelligence are:
1. You have two ears and one mouth and you should use them in that proportion. A lot of financial advisers have the gift of the gab and tend to dominate conversations with clients, instead of listening to what they have to say.
2. Keep it simple stupid (KISS). A lot of advisers try and impress clients with their technical knowledge. More important to the client than what you know, is how much you care and whether you can solve their financial problems.