Why high-net-worth clients want broker partnerships: Coach

To attract high-net-worth clients, however, brokers must become their partner who can validate their thoughts while letting them remain in control of their finances, Ms Lange posited.

“Most high-net-worth individuals now need to feel like they can do it themselves,” she told The Adviser.

“While that might sound negative because it seems like they don’t need brokers, they actually do. They want someone who will validate what they’re thinking so they feel like they’re in control.”

The human paradox

A report released by Accenture in 2022 titled ‘The human paradox: from customer centricity to life centricity’ stated that individuals are taking control of their finances but want advisers and companies to hold their hands, an inconsistency that is increasingly considered normal.

The report is based on a survey of almost 26,000 consumers aged 18 and over across 22 countries to gain an understanding of how their preferences, beliefs, and behaviours are evolving as they navigate the changing world around them. It is also based on follow-up surveys of 13,000 consumers across 12 countries.

Commenting on this, Ms Lange said: “The human paradox is all about the fact that clients believe they should do it all themselves because they don’t believe anyone can look after their needs as well as they can.

“But the paradox is, they can’t do it all by themselves, even though they’ve got access to information and research.”

Ms Lange’s comments preceded the Better Business Summit 2023, where she will present a session in five Australian capital cities on what high-net-worth clients look for in a trusted adviser and how brokers could transform their brand identity and position themselves to attract them.

Along with demanding tailored recommendations, high-net-worth clients would also prefer a long-term consistent relationship with their broker, Ms Lange said.

“There is a portion that feels like banks rotate staff members, meaning they have to deal with a different person every time,” she said.

“But high-net-worth clients are looking for consistency. They want the one person. That is the advantage a mortgage broker has.”

Become a power connector

To demonstrate their value to high-net-worth clients, Ms Lange said brokers must become a “power connector” more than a networker because their value proposition is linked to their actions.

While knowledge and experience are key to establishing relationships, Ms Lange said brokers who can connect clients with other advisers who can assist them with financial matters outside property would boost their value proposition.

“It’s their ability to act in ways that have got nothing to do with interest rates or refinancing that will show their value to high-net-worth clients,” she said.

By doing this, a broker can demonstrate that they are resourceful enough to quickly connect clients with those who can provide solutions, Ms Lange added.

“Clients will think you’re a good resource and someone in the know. They will do business with people they know and trust. No amount of AI technology, social media posts, or websites can compensate for someone who constantly adds value in ways outside of being a broker,” she said.

Be empathetic, active listeners

Alongside this, brokers must remember that their clients have been deeply affected by external factors.

Indeed, the Accenture report highlighted that 72 per cent of consumers said external factors such as inflation, social movements, and climate change are impacting their lives more than in the past, while 60 per cent said their priorities keep changing as a result of world events.

Ms Lange also noted that the COVID-19 pandemic and prolonged lockdowns have impacted clients in different ways.

“Mortgage brokers have to become empathetic, compassionate, active listeners, good conversationalists, open-minded, and non-judgemental,” she concluded.

“They have to be able to stand with that high-net-worth client, be in their world, and understand how they think.”

To hear more from Marg Lange about how you can target high-net-worth individuals and increase your loan volumes, come along to the Better Business Summit 2023.

It will be held in the following locations:

Brisbane, 2 March 2023, Brisbane Showgrounds

Perth, 9 March 2023, Crown Towers Perth

Adelaide, 16 March 2023, Adelaide Convention Centre

Sydney, 23 March 2023, The Star, Sydney

Melbourne, 30 March 2023, Melbourne Pullman Albert Hotel

To buy tickets and secure your spot, click here.

Did you know The Adviser Premium members go for free? Become a Premium member here.

For more information, including agenda and speakers, click here.

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