Advisors must balance tech and touch for investor engagement

Relationships between financial advisors and their investor clients are being reinvented by the rapidly expanding use of technology. At the same time, advisors need to strike a balance between leveraging technology and maintaining a personal touch in their client relationships.

As we look to the future of financial advisor relationships, our study reveals a complex and evolving landscape. Investors across the globe are receptive to technology as an enabler of financial advisors, but not a replacement. Amid this boom, 75% of global investors across all wealth tiers—such as mass market, mass affluent, high net worth (HNW), and ultra-high net worth (UHNW)—continue to rely on financial advisors, up from 72% in 2021. Advisor adoption by investors confirms that advisors are effective in solving client needs and meeting client expectations. How investors find their advisors differs, with 60% sourcing their advisor from their bank, while 40% use an independent advisor or wealth manager.

However, there is still some dissatisfaction with the advisor relationship. Notably, 29% of investors are considering a change to their advisor in the next 12 months, driven by the investor’s desire for access to investment products (ETFs, crypto, ESG, etc.), new technologies (including artificial intelligence (AI) and machine learning (ML)), as well as general concerns around fees and service. With some investors interested in changing advisors, the importance of referrals is paramount, outranking branding for new client development.

Social media is increasingly influential in the advisor relationship as well, with 54% of investors finding social media interaction important, up from 47% in 2021, and close to a third saying it is extremely important to the advisor relationship. Investors are engaging with their advisors on a variety of social media platforms, with almost all platforms growing in importance.

However, technology is not a replacement for an advisor, as investors continue to seek face-to-face meetings with and electronic communications from their advisors for investment advice, with 53% of investors citing the importance of face-to-face meetings. While technology is ubiquitous, investors find value in a financial advisor who can provide interactive and customized products and service offerings.

At its core, the financial advisor relationship is about time invested and personal attention to the client. And while technology can enable better delivery, global investors are also saying that the personal touch and face-to-face meetings matter as much as ever.

Advisors should focus on delivering personalized advice, access to emerging products (e.g., crypto, ESG) and technology-enabled services to meet the evolving needs of investors and retain clients in a dynamic market. According to our research, advisors should leverage the power of social media beyond delivery of content to serving as a referral network for access to new clients who are considering switching (29% of the advisor market) or who have never used an advisor before (25% of the entire global market).

Executive summary

Relationships between financial advisors and their investor clients are being reinvented by the rapidly expanding use of technology. At the same time, advisors need to strike a balance between leveraging technology and maintaining a personal touch in their client relationships.

As we look to the future of financial advisor relationships, our study reveals a complex and evolving landscape. Investors across the globe are receptive to technology as an enabler of financial advisors, but not a replacement. Amid this boom, 75% of global investors across all wealth tiers—such as mass market, mass affluent, high net worth (HNW), and ultra-high net worth (UHNW)—continue to rely on financial advisors, up from 72% in 2021. Advisor adoption by investors confirms that advisors are effective in solving client needs and meeting client expectations. How investors find their advisors differs, with 60% sourcing their advisor from their bank, while 40% use an independent advisor or wealth manager.

However, there is still some dissatisfaction with the advisor relationship. Notably, 29% of investors are considering a change to their advisor in the next 12 months, driven by the investor’s desire for access to investment products (ETFs, crypto, ESG, etc.), new technologies (including artificial intelligence (AI) and machine learning (ML)), as well as general concerns around fees and service. With some investors interested in changing advisors, the importance of referrals is paramount, outranking branding for new client development.

Social media is increasingly influential in the advisor relationship as well, with 54% of investors finding social media interaction important, up from 47% in 2021, and close to a third saying it is extremely important to the advisor relationship. Investors are engaging with their advisors on a variety of social media platforms, with almost all platforms growing in importance.

However, technology is not a replacement for an advisor, as investors continue to seek face-to-face meetings with and electronic communications from their advisors for investment advice, with 53% of investors citing the importance of face-to-face meetings. While technology is ubiquitous, investors find value in a financial advisor who can provide interactive and customized products and service offerings.

At its core, the financial advisor relationship is about time invested and personal attention to the client. And while technology can enable better delivery, global investors are also saying that the personal touch and face-to-face meetings matter as much as ever.

Advisors should focus on delivering personalized advice, access to emerging products (e.g., crypto, ESG) and technology-enabled services to meet the evolving needs of investors and retain clients in a dynamic market. According to our research, advisors should leverage the power of social media beyond delivery of content to serving as a referral network for access to new clients who are considering switching (29% of the advisor market) or who have never used an advisor before (25% of the entire global market).

Introduction

Developments in technology are having a huge impact on the global investor landscape and relationships with their financial advisors. From mobile apps to instant messaging to video conferencing, investors now have a multitude of channels to receive news, updates, investment research, and recommendations.

Moreover, emerging technology is not only about communications but also increasingly embedded into the investment process itself through predictive analytics, AI/ML and robo-advisory services. We see this across the globe, with investors all saying the same thing—they are receptive to technology. Social media, once seen as primarily a brand communication tool, is now considered a top four technology influencer on the advisor-investor relationship, above even mobile apps.

The role of technology continues to massively influence investor engagement with their advisors. The receptiveness of clients to multiple technologies suggests advisors need to be omnipresent, as investors want to engage with their advisors over a range of channels, including social media, email and face-to-face meetings.

Investors continue to adopt financial advisor relationships

Financial advisors remain indespensible despite ever-increasing technology adoption. Although the robo-advisory phenomenon was once anticipated to automate much of the advisor workflow, it has actually automated some specific areas such as investment management, not advice or personalized attention. Three-quarters of global investors who qualify as mass market or wealthier use a financial advisor, up from 72% in 2021. The 25% who do not use a financial advisor present a clear opportunity for advisors to demonstrate their value and attract new clients. 

Moreover, given more complicated needs and specializations of advisors, wealthier investors tend to use more advisors—62% of mass affluent use only one or two advisors, while 36% of HNW are using two or more.

However, despite the uniform adoption of financial advisors, there is some dissatisfaction with the advisor relationship. Our study shows that 29% of investors are considering a change to their advisor in the next 12 months, down slightly from 31% in 2021.

Making a change to an advisor is challenging and can cause short-term issues for investors. However, of those inclined to make a change, 35% are interested in trying out new technology platforms, while 27% cite the availability of crypto products and services as a reason to switch advisors. In other words, advisors must continue to push for solutions to their clients’ problems over time and embrace emerging technology and new investment products for their clients, where applicable.

Fees for these services are a major consideration, of course, but keeping up with advancements appears to be more important, as fees have dropped slightly in importance since 2021. For many investors, however, dissatisfaction is the result of several issues, which may lead to considering a new advisor.

When deciding on a new advisor, the value of referrals is very high and is just above the importance of branding, suggesting the power of personal connections for advisors. The importance of referrals has major implications for the role of social media and its power to connect investors globally with friends and connections, as well as advisors.

Delivering personalized and technology-enabled services

Clearly, not all advisors are alike. Moreover, their firms often determine technology platforms offered and product availability. While new innovations are interesting, most investors value a core set of services from their advisors—investment recommendations, investment research and news, with 79% citing investment recommendations as an important factor in their relationship with their advisor.

How investors prefer their investment-related content to be delivered is an open and evolving question. Investors are of two minds, with 58% receptive to email communication and 53% also receptive to face-to-face communications. One of the more interesting shifts from 2021 is the slight decline in email preference and the relative rise in the importance of face-to-face meetings. It seems almost contradictory in our digital world, but in 2021, the pandemic led to record levels of virtual meetings. Our conclusion is that while global investors are very receptive to technology, personal touch matters and remains critical, with 53% of investors saying face-to-face meetings are important (and distinct from live video/webinars).

How advisors can stand out in a crowd

The best advisors stand out not necessarily by performance returns, but by how they offer differentiated services. One way that advisors can achieve this is by offering their clients choice. While phone and video interactions are valuable, so are in-person meetings and personal updates.

Other ways to differentiate include how to respond when markets get more volatile. Interestingly, while some clients prefer greater outreach during those periods, not all do. To that end, 78% of investors from around the world told us that during times of market volatility, they’d prefer to communicate with their advisor on the status of their portfolio at least monthly. This is up from 74% in 2021, suggesting the speed in urgency of client communications is accelerating.

Another way for advisors to distinguish themselves is to offer products and services that others don’t. Our study data shows continued and increasing interest in the more complicated and detailed services, such as estate/trust management, and tax and legal advice. These services also allow advisors to grow the relationships as investors get wealthier, have families, and get closer to or past retirement.

Thus, we believe that investors are looking for advisors who can provide personalized investment advice, access to products (e.g., ETFs, ESG and crypto), and technology-enabled services. The best advisors will find a way to either offer or refer clients to more complex services that add value, particularly to wealthier investors.

Investor communications: More is better

In the last 18–24 months, there has been a noticeable shift in investor preferences. Thirty-two percent of investors seek more interaction with their financial advisors. This could be related to the more volatile nature of the financial markets, or simply reflect a greater desire for personal contact with the advisor who brings more customized solutions (not to mention the ease at which advisors can now communicate through approved channels, such as messaging platforms, email and social media). At the same time, the preference is not in one direction—investors value personal and electronic contact roughly equally, suggesting it’s not a one-size-fits-all approach.

The role of social media in advisor-investor interaction

Social media is playing a growing role in advisor relationships, with 54% of investors following their advisor on social media, and 30% saying it is extremely important to the advisor relationship. This is particularly pronounced in EMEA, LatAm and APAC, where the majority follow their financial advisor. Advisors should prioritize social media strategies to engage with clients and prospects, including providing news, personalized content and technology-enabled services.

Moreover, the importance of social media to advisor-investor interaction has increased markedly in the last four years, from less than half to now over half of global investors. We have reached a tipping point where financial advisors should consider social media interactions as central and not adjacent to the investor relationship. Personal touch clearly matters, and social media can be a way to deliver personal connection and interaction as well as serve as a potential referral network for advisors.

Social media is a key channel for advisors to demonstrate their expertise and build relationships with clients, with 77% of advisors and marketers saying they are hitting the right level of content and outreach on social media. Social media platforms are also a platform where corporate branding activities and thought leadership can empower the advisor to support their clients in a deeper way.

Investors are looking to a variety of social media platforms for engagement, with almost all platforms growing in importance since 2021. However, there is no one platform with a dominant share of the market, given the fragmentation of social media.

Location of the investors matter to choice of social media. LatAm has divergent views on platforms, favoring Facebook and Instagram above other regions. LinkedIn has a relatively strong presence in EMEA as well.

Embracing innovations in products and services

Investors are increasingly interested in both traditional and emerging investment products for their portfolios. Nearly half the respondents are now leveraging ETFs, and a growing number of investors are planning to increase their use even further.

ESG adoption in portfolios continues to rise but is not yet at 50%. Advisors should continue to prioritize education and training on these products. And while ESG investing may be trending away in the U.S. recently, EMEA, APAC and LatAm are at or near 50% adoption.

The crypto phenomenon continues to grow, with adoption significantly up since 2021. Similar to ESG, its not yet to the global tipping point. However, with the rise of new crypto platforms in the U.S. backed by well known brands, and with new and easier packaging built around crypto, we expect this to continue rising across the globe, particularly as North America has lagged other regions.

Conclusions and recommendations

Investors are telling advisors that while they are receptive to technology, they crave personalized attention and still value face-to-face interactions. Advisors should focus on delivering personalized advice, access to emerging products and technology-enabled services to meet the evolving needs of investors and retain clients in a dynamic market.

Investors increasingly follow their advisors on social media. Social media is a key channel for advisors to demonstrate their expertise and build relationships with clients and should be prioritized in advisor communications and marketing strategies. In addition, advisors should leverage the power of social media beyond the delivery of content to serving as a referral network to access new clients who are considering switching or have never used an advisor before.

David Easthope advises on market structure and technology globally.

During February and March of 2025, Crisil Coalition Greenwich, in partnership with LinkedIn, conducted 2,065 in-depth interviews with investors in 16 different countries across North America, Europe, the Middle East and Africa (EMEA), Asia-Pacific (APAC), and Latin America (LatAm). The study focused on the advisor-investor relationships across different age groups, wealth and income levels. Wealth included the full spectrum of mass market, mass affluent, HNW, and UHNW investors. Produced for LinkedIn by Crisil Coalition Greenwich.