Financial planning relies on patterns, predictions and models, using market data to make the best possible decisions for clients. The industry relies heavily on trust, relationship building and communication, all of which has been put to the test during the Covid-19 pandemic. Market volatility and unpredictability has led to an increase in client communications and advice, with an understandable panic from many clients concerned about their investments and considering panic selling. And while the pandemic is unprecedented, reputable financial advisors have established crisis management plans and are always prepared for market fluctuations, making them more prepared than some other industries for a pandemic such as this.

As US CFOs now look to rebuild revenue and prepare for the future, worries for a second wave of Covid-19 infections remain. So what does this mean for financial planners and financial advisors in the US?

The implications of the pandemic will be long-lasting. According to the PwC Covid-19 CFO Pulse Survey of finance leaders in the US and Mexico, the top three concerns with respect to Covid-19 are the pandemic’s financial implications, both now and into the future, the potential global recession, and effects on productivity and the overall workforce.

We’ve recently heard the news that the US economy officially entered a recession in February and the Federal Reserve has warned of a 6.5% contraction in real GDP for 2020, putting enhanced pressure on business leaders and financial advisors. Share prices have fallen dramatically since market highs earlier in the year, fixed income markets are showing signs of stress and the market continues to be volatile, making it a difficult time to be both an investor and a planner. Many financial advisors are small business owners who have had to work doubly hard not only to support their clients and employees, but keep their businesses running smoothly and safely. However, some advisors have seen increased demand for their services as clients require more guidance over the turbulent markets and their falling incomes. This shows trusted relationships with qualified planners are now more important than ever, as is clear, frequent communication.

Most asset and wealth management firms will have had business continuity plans in place pre-Covid-19, but many of those plans would not have a broad and deep enough scope to cover the unprecedented pandemic. However, we have seen examples of savvy financial advisors being more prepared for such a crisis than others. Stearns Financial Group in Greensboro already had a pandemic protocol in place, which has resulted in 90% of the firm’s 600 clients now communicating with advisors via GoToMeeting. Great Path Planning has helped older clients navigate the technology required to keep up with its new remote offering, while Guiding Wealth in Dallas had a smooth transition as many clients were accustomed to meeting with advisors virtually.

As the virus continues to impact society and regulations fluctuate, we will see virtual meetings and digital communications continue to be standard within financial planning. Technology will play an increasingly important role and more focus will be placed on getting advisors and clients up to speed with digital communication channels.

Many US professionals have already adapted to new ways of working, with remote and home working options being explored by organizations that previously wouldn’t have considered them. We expect to see this trend last for months, if not years. Technological innovation is leading the way, with 32% of CFOs investing in tech-driven products and services in the wake of Covid-19 and 54% planning to make remote work a permanent option, according to PwC. And while many advisors report clients asking for a return to face-to-face meetings, some may choose not to do this until a clearer picture of health and safety emerges – or indeed until a vaccine is produced. This means financial planning firms should look for advisors who are agile, flexible and strong communicators, prepared to work in different environments and adapt to the ever-changing landscape.

At Hanover, we have deep experience in financial planning recruitment and know how to identify and attract the best candidates on the market. With consumers placing more focus on their finances than ever, now is the ideal time to ensure your workforce and processes are robust and flexible to adapt to the increased market demand.

Contact us here to find out how we can help you with your financial planning executive search strategy.