Why we all crave the human element of financial advice

Over the last decade, you’ll have seen a huge shift in the way you manage your finances.

Gone are the days of having to visit your high street bank to make a transaction and watching as they add a deposit stamp to your paying in book. Now you can manage your money without even having to leave the sofa.

The digitisation of the finance industry has made it easier than ever to manage our money - but does this come at a cost?  

We recently spent a few days in Alford in Scotland, where we stumbled upon an amazing general store selling everything you can think of from milk to wool to flip flops. 

It had a Post Office counter in the corner with a little old lady behind it. She would have been able to find you anything you wanted. It was also the hub of the community with people popping in and out, sometimes just for a catch up. It was just how shops used to be before the invention of Amazon.

This stood out to us because it’s just so rare! It made us stop and think about why it’s so satisfying to experience the ‘human touch’ and why, despite the convenience of technology, the human side of financial planning isn’t to be underestimated. 

Be careful what you wish for

In the 90s, Chris worked in a bank. This was right at the start of the movement towards digitisation. Along with his colleagues, he had to encourage customers to sign up for an online account.

Of course, we all know how this panned out - now that we manage our finances in the palm of our hands, our high street banks are thing of the past. Good news if you’re looking for a pub, but not if you want to query a transaction!

We’ve probably all experienced frustration with being on hold to a contact centre or waiting for a chatbot to provide an answer to our query – it can leave you pleading to speak to a real person who can answer you without referring to a script. 

The fact is that technology alone can’t provide the same level of understanding of your own personal situation as a human. And if you have a financial plan that takes into account your taxes, retirement plans, insurance needs, budgeting abilities, spending habits, savings goals, desires, and fears, and have questions about it, you need that human touch. 

The problem with going fully digital

Here at Bow FS, we choose our tech solutions carefully – we know it’s not the answer to everything. Adopting tech for tech’s sake might work for some, but not us. If we were to automate all of our processes and fully remove the human aspects of our service, we know how that would impact our clients’ financial wellbeing and satisfaction. 

Some clients find the digitisation of their finances overwhelming, especially when it comes to large amounts of money. 

These clients might prefer to keep records of their savings and investments in a filing cabinet in their home office rather than a confirmation email. When they need support, having to consult with a chatbot would be their worst nightmare! They’d much rather pick up the phone and confide in someone they trust. With these clients, we often find ourselves chatting about our holidays and favourite TV shows before we get down to the nitty gritty of their financial situation.

Even tech-savvy clients are usually reluctant to do away with the human element of financial planning. They don’t want templated advice that’s offered to every member of their generation with a similar salary and relationship status. They want to feel special, listened to, and understood.

A financial planner = tech + trust

All of this is to say that there’s no such thing as one-size-fits-all in financial planning. A tool that works for one person won’t necessarily work for another. That’s why we think it’s so important to offer you the convenience of tech along with the trust of a human.

Perhaps one of the most underrated blessings of working with a financial planner is that there’s someone at your side who truly understands the significance of your financial goals and achievements. That’s the other thing that’s missing from not having a physical bank branch to pop into. 

If you’re becoming debt-free, starting a business, or retiring early, you want someone there who can celebrate these milestones with you – they’re huge achievements! And yet clicking ‘submit’ on the last payment of your mortgage doesn’t have quite the same feeling of satisfaction when you do it from your sofa.

With us, we’re at your side through thick and thin. We’re there for the big life milestones, but the smaller ones too. We know about the things that matter to you and love to be able to share those personal wins with people – even if it’s something like reading a book a month when you used to struggle to finish even one in a year or taking up a new hobby or skill. These achievements may not be as big as retiring early, but it's the sense of accomplishment and personal satisfaction that makes them meaningful to you.

These days, apps, platforms and chatbots are often programmed to applaud us – often with a sprinkling of celebratory emojis. But what’s more meaningful in the long run: a heartfelt phone call with someone who knows what matters to you, and can answer your questions about the next steps, or an insincere ‘well done’ from an app that can’t think outside the box?

Get in touch if you’d like the human touch!