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2 . Transactional interactions : Routine check-ins , minor plan adjustments and document reviews can be handled efficiently online . These interactions save time and reduce the logistical burden for both advisors and clients .
3 . Relationship building : This is where in-person interactions shine . Annual reviews , major life transitions , the introduction of new team members and deep discussions about values and goals are best done face-to-face . These moments create lasting trust and demonstrate genuine care — qualities that cannot be fully replicated online .
Shopping is not purely transactional . Nor is financial advice . Clients may appreciate the convenience of online meetings , but they still value the trust , connection and personal care that inperson interactions uniquely provide . A handshake , a cup of coffee , small talk about the weather and eye contact during a meeting all contribute to a trusted personal relationship between client and advisor . At the same time , digital tools can help advisors efficiently prepare for their meetings and deliver results after the advisor has exchanged goodbyes .
The Danger Of Transactional Thinking
The shift to virtual advising was necessary during the pandemic , and many advisors have embraced it as a permanent model . However , there ’ s a risk of overestimating the effectiveness of digital communication in building and maintaining deep client relationships .
Online advisory interactions tend to be transactional . They are focused on tasks such as reviewing portfolios , adjusting plans or addressing specific questions . While efficient , these interactions often lack the warmth , nuance and trust-building opportunities of face-to-face meetings . While there may be a moment of
Ask yourself : Are you using the power of in-person meetings to deepen relationships , or are you relying too heavily on digital convenience ?
small talk , profoundly human and gracious acts are trickier . ( How do you offer clients a cup of coffee virtually ?)
Retail shows us that convenience is not enough to sustain loyalty . The same shopper who buys paper towels online still wants to walk into a store to discover something new or feel confident about a big purchase . CNBC reports that even though digital native Gen Zers may start their shopping journey online , most prefer to purchase in a store . Similarly , financial clients might use online tools for quick updates , but they still want the reassurance and depth of an in-person conversation when they are making significant financial decisions .
The Right Balance
The challenge for financial advisors is not to choose between online and in-person — it ’ s to find the right balance . Retailers have demonstrated how to integrate digital and physical experiences seamlessly , using each to complement the other . Financial advisory firms can do the same by rethinking how they approach client engagement :
1 . Content delivery : Digital platforms are ideal for delivering timely , actionable content . Advisors can use webinars , videos and newsletters to share insights , updates and educational materials that clients can consume on their own time .
A Premium Client Experience
Retailers are proving that personal engagement is not just surviving in the digital age — it ’ s thriving . Financial advisors have a similar opportunity to differentiate themselves by doubling down on the personal .
Ask yourself : Are you truly connecting with your clients , or are you merely managing their accounts ? Are you using the power of in-person meetings to deepen relationships , or are you relying too heavily on digital convenience ?
Your answers to these questions will shape the future of your practice . If retail ’ s resurgence has demonstrated anything , it ’ s that personal remains premium — and in financial advice , where trust and connection are critical , it ’ s an advantage that cannot be ignored or taken for granted .
The Future Of Client Engagement
As you consider how to structure your client relationships in the future , take a page from the retail playbook . The future isn ’ t just physical brick-and-mortar or digital — it ’ s phygital . Advisors must embrace the power of this approach — embrace digital tools for efficiency but recognize that relationships are built on shared experiences , trust and the human touch .
JOSEPH F . COUGHLIN , PH . D ., is founder and director of the MIT AgeLab . He is the author of The Longevity Economy : Unlocking the World ’ s Fastest- Growing , Most Misunderstood Market . His new book with MIT AgeLab ’ s Luke Yoquinto is Longevity Hubs : Regional Innovation for Global Aging ( MIT Press , 2024 ). Follow him on LinkedIn @ drjoecoughlin .
58 | FINANCIAL ADVISOR MAGAZINE | JANUARY / FEBRUARY 2025 WWW . FA-MAG . COM