While investment or wealth management will continue to be an important part of any wealth management firm’s value proposition, it is no longer enough to provide long-term value to clients. It also does not align with the fact that clients today are seeking more than just money management—they want a collaborative, personalized financial planning experience.

The Rise of Collaborative Planning

According to recent research, 78 percent of clients want to be actively involved in the financial planning process.¹ Collaborative planning involves the client and their financial professional working together throughout the financial planning process. This approach goes beyond simply sharing recommendations; it involves actively engaging the client in building the recommendations directly within and outside of your planning software.

The collaborative planning process helps clients understand how their choices align with their values, impact their financial stability, alleviate anxiety about the unknown, and give them confidence in their financial plan.

A Growth Driver for Enterprise Firms

Collaborative planning isn’t just beneficial for clients—it’s a strategic advantage that drives the future growth and success of enterprise firms. Firms that effectively implement collaborative planning can unlock multiple benefits that directly impact their business performance, including:

• Increased trust and loyalty: Collaboration builds trust, which is critical for building long-term relationships and retaining clients. When the client’s values are put at the heart of the planning process, they will feel more confident in their planner’s expertise and commitment to their financial success.
• Improved client referrals: A satisfied, engaged client will become their planner’s biggest advocate. Financial professionals who prioritize collaboration see 33 percent more annual referrals than peers.¹ These referrals drive organic growth, a powerful and cost-effective way to expand a firm’s client base.
• Increased revenue: Financial professionals who actively plan with clients have nearly double the assets under management (AUM). In addition, complex plans generate 21 percent more revenue than simple plans.¹ This means that the depth and quality of collaborative planning not only enhances client implementation and satisfaction, but can directly translate into greater financial returns for the firm.
• Data as a strategic asset: By working closely with their clients to build a personalized financial plan, planners and enterprises are able to more easily identify upselling and cross-selling opportunities for other solutions that the firm offers. This approach allows financial planners to recommend additional services authentically, adding value for clients while growing the firm’s revenue streams.

Overcoming Challenges in Scaling Collaborative Planning

The benefits of collaborative planning are undeniable, but scaling collaborative planning presents a number of challenges for enterprise firms. In Collaborative Wealth Planning at Scale: An Enterprise Guide to the Latest Advancements, we identified the six key challenges that enterprise firms commonly face:

1. Collecting client data and building a holistic financial picture
2. Planning efficiently, consistently, and holistically
3. Effectively driving client engagement
4. Overcoming the inertia of legacy platforms
5. Engaging clients at every step of their financial journeys
6. Maximizing the value of your technology investment

Download this guide to delve into each of these challenges and discover how leveraging breakthrough technology solutions can help firms facilitate collaborative planning without sacrificing operational efficiency.

Sources

1. eMoney, “Planning Better Together” Research, October 2024.

DISCLAIMER: The eMoney Advisor Blog is meant as an educational and informative resource for financial professionals and individuals alike. It is not meant to be, and should not be taken as financial, legal, tax or other professional advice. Those seeking professional advice may do so by consulting with a professional advisor. eMoney Advisor will not be liable for any actions you may take based on the content of this blog.

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