The Future of Advisor-Client Communication

Financial Advisors

Text messaging is the default method of communication in 2023, but it’s still uncharted territory for financial advisors. Over the past few years, we’ve moved from in-person meetings with financial advisors to video conferencing via popular platforms like Zoom. The next big shift in communication between financial advisors and their clients is the shift from phone calls and emails to text his messages. According to Simple Texting, 70% of his consumers chose to receive text messages from businesses in his 2022, and 61% said they would like the ability to text back to businesses.

Text messaging is convenient and allows users to communicate in a simple, time-saving and informal way. Instead of flooding your inbox with separate emails or making phone calls that require both parties to be present at the same time, text messaging enables on-demand communication at your convenience. increase. Everything from booking confirmations to portfolio updates can be done by text, but how do you ensure that your communications are secure and compliant?

Texting clients is risky. In 2022, the SEC fined him $1.1 billion against financial institutions. This was because “employees of the company routinely communicated on business matters using text messaging applications on personal devices.” There are several steps you and your company can take to comply with SEC and FINRA regulations. First, create written policies and procedures for texting. Text messages can be sent via iMessage, WhatsApp, Telegram, Google Voice, and more. So make sure you cover all the channels your employees use. Once policies are established, all employees should be trained and updated regularly.

Your company can implement compliant client text messaging in several ways. One way is to take advantage of Voice over Internet Protocol (VoIP) technology that easily integrates with compliant archiving software. Some compliance software such as Presults offers a phone application that you can download from the app store and send text messages as normal. While this solution requires a new company phone number, you can use your existing device to text your customers, so you don’t need a second device.

Here are some tips to keep in mind while texting.

  • Always put up a security wall between personal and business communications. Having a phone number that is separate from your personal number helps protect your privacy during an audit.
  • Include a standard disclosure at the start of a new text message conversation. If you are using text messages to advertise to your clients, be sure to include options for them to opt out of these types of communications.
  • Regularly test your security parameters. All client communication must use two-factor authentication and encryption.


Meet where your clients are. Clients, especially younger clients, expect to be able to reach out to her financial adviser by text her message. Text messages expose your company to audit risk, so you can minimize that risk by having policies in place, using the right tools to make text messages compliant, and striving to ensure messages are sent with robust security protocols. Keep it to a limit.

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