Alternative forms of communication as a success factor
Luxembourg, 29 May 2020 – The pandemic forced many financial advisors to work exclusively from their home offices as visits to customers in general were impossible. It turned out that work by way of alternative communication channels was not only functioning well, but customers rewarded fast and good accessibility of financial professionals, despite volatile markets. “With many advisors, we noticed a distinct willingness of their customers to use alternative communication channels – and we noticed an increase in business”, said Swen Köster, Head of Sales Germany at Moventum S.C.A.
“After all, our profession is based on communication”, Christian Strack of Strack Investment explained. “Particularly the pandemic-related travel restrictions have shown that there is still a lot of efficiency potential.” The move to consulting via video chat or by telephone translates into time savings for advisors and clients alike. “Obviously, we need personal contact”, Strack added, “but I am experiencing great willingness on all sides to engage in new ways of communication.”
It is above all the elimination of trips to customers that allows for more time to speak to them. “Spending hours on the motorway or on the train is not suitable for conducting holistic consultation meetings”, mentioned Strack. Apart from that, the communications network would finally have to be expanded in a sensible manner, at least for long-distance rail service and along the motorways. “Insofar, just like many other advisors, I was even more present at my customers during the crisis than before.” According to Strack, this also applies to the presence of the financial industry as a whole. “In the crisis of 2008, many advisors ducked away, this time firms like Moventum were on hand really quickly with support and information, which is what makes our work possible in the first place”, said Strack.
Appropriate infrastructure for communication tools, securities and portfolio management systems in the background is crucial to be able to work at a high level of quality even from a distance. “The financial industry has done a lot to become more digital in recent years”, Köster illustrated. The focus had often been on expanding the direct path to the end user, for instance through digital asset management or online brokerage. “But it is specifically this crisis that shows that communication with financial professionals is important for the investment success of clients – as long as reliable partners and systems aid thinking in the background”, said Köster. “In past crises, private investors frequently sold their investments in a hectic and had to accept losses. This time, especially clients with advisors stayed the course and came away with a black eye.”
During the pandemic phase, the contact between financial advisors and Moventum via digital communication channels also worked very well and securities services harmonised with the requirements, so that advisors and customers benefited directly. “Overall, this led to cash inflows in the mid double-digit million range”, explained Köster. The clear focus on the needs of advisors was always the top priority, even during the difficult months.
“We are concentrating on services for financial advisors that really make daily work easier”, said Köster. “We are working in an environment that is extremely non-haptic, we cannot grasp, taste or smell our services”, Strack pointed out. “This is why it is important that we are present at our customers, that we can accommodate and implement their wishes and needs.” This is where digital communication channels are a key improvement. “At the same time, I am sure that not everything will remain available in its greatly increased scope”, said Strack. “But for financial consulting, the range of available instruments has now become much wider. A video conference is no longer an exotic idea, but a normal part of everyday life.”
Moventum Asset Management S.A. (Moventum AM) is a wholly-owned subsidiary of Moventum S.C.A. The management company, in which Moventum’s asset management expertise has been concentrated since the beginning of 2019, manages Moventum’s own funds and individual mandates as part of its asset management portfolios.
As an independent financial service partner, Moventum S.C.A. is specifically addressing financial service providers such as financial advisors, asset managers, institutional investors and NGOs. Its services in asset management and asset building include a web-based securities investment platform focusing on funds, relieving financial advisors of administrative tasks, and integrating custody and account management for individual investors. Investment management tools, regulatory-compliant reporting and individual securities services are also part of the full-service range. Standardised fund asset management service with a sustainable, successful track record for the relevant risk/reward profiles complements the offering. The Moventum Group also enables institutional investors to outsource securities processing in its entirety. The MoventumOffice investment platform offers access to more than 9,000 investment products including funds and ETFs from more than 400 investment firms, including the use of analysis, reporting and support tools.
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