There’s a new information ecosystem emerging and advisors’ roles are changing
New client relationships in the new information ecosystem
While clients appear to be following the old Russian proverb of “trust, but verify” regarding finfluencer and AI-derived investment information, advisors also need to stay aware that their clients are finding alternative sources of information. For many of those clients, the new sources are empowering. 81 per cent of respondents said that finfluencer and AI content changed their advisor relationship. 50 per cent said they felt more confident asking their advisor questions and 36 per cent said they rely more on their advisor to verify the information they receive.
It’s not all sunshine for advisors, though. 19 per cent of respondents said they rely less on their advisors, 16 per cent said they now make financial decisions without talking to an advisor, 14 per cent are more skeptical about their advisors’ advice, and 13 per cent have disagreed with their advisors.
It’s not just advisors and broker-dealers reckoning with a more informed client base. Direct brokerages are working to ensure that they can provide points of verification and credibility for these clients. Claude-Frédéric Robert, President of National Bank Direct Brokerage, notes that while a direct brokerage like NBDN cannot give its users advice, it’s important to offer them resources they can easily access to verify what they’re learning from AI and finfluencers.
“As a direct broker, the research makes us ask how can we offer more information and more education in a way that will be consumed by our investors,” Robert says. “We have lots of information on our website, but I’ve learned that’s not the way they consume it. So how can we adapt to make sure we support [investors] in the best possible way?”
Advisors’ place in the ‘information funnel’
One of the responses by the industry to the rise of financial influencers on social media platforms is to empower advisors with content of their own. Compliance reviews have been made more efficient and new processes have been built to allow advisors to put verified information on these channels and establish their own audiences and credibility. For Stephanie Wolfe, however, becoming a finfluencer may be less valuable than just understanding what advisors’ clients may be encountering online.
