4 ways financial advisers can use emotional intelligence to create deeper connections

Financial advisers, wealth managers, and private bankers operate in an environment where precision is critical. The ability to cut through vague language, identify a client’s needs, and guide them toward informed decisions is at the heart of your work. Yet, too often, client conversations remain clouded by generalisations, assumptions, and emotional undercurrents that can affect clarity.

When paired with emotional intelligence (EQ), the precision model offers a robust framework for bringing clarity, focus, and empathy to conversations.

In this article, we’ll explore how to apply the precision model in adviser-client interactions, helping you gain deeper insights, build trust, and ultimately serve your clients more effectively.

Why precision matters in client conversations

In the finance profession, clients often approach their advisers with hopes, fears, and unclear goals. They may express generalisations such as “I want to be more secure,” “I need better returns,” or “I don’t want to lose money.” While valid, these statements lack the specificity that leads to actionable financial advice.

Leaning on the precision model, you can gently challenge clients to move beyond these surface-level statements and articulate their true objectives. This improves the quality of your advice and helps clients feel understood, a significant emotional outcome that strengthens the adviser-client relationship.

The Precision Model adapted for financial advisers

The Precision Model helps advisers focus on four key areas in client conversations: generalisations, comparisons, verbs, and self-limiting beliefs. Let’s break each one down with examples specific to financial advice:

1. Generalisations: Clarifying the “always” and “never”

Clients often make sweeping statements like:

  • “All advisers are expensive.”
  • “The markets always go down when I invest.”
  • “Nobody ever explains things to me clearly.”

Such generalisations can be rooted in frustration or fear but are rarely entirely true. Here’s how to respond:

  • Ask clarifying questions: “When you say ‘all advisers are expensive,’ what are you comparing this to? Is it the fees you’ve experienced personally or something you’ve heard from others?”
  • Help clients specify: “Which investments are you referring to when you say the markets always go down?”

This approach encourages clients to think more critically about their statements and empowers them to articulate concerns in ways that can be addressed collaboratively.

2. Comparisons: Defining the “better” and “more”

Clients often compare their financial situations to vague benchmarks, making their concerns harder to address. For example:

  • “I’m not saving enough for retirement.”
  • “My portfolio isn’t performing as well as others I’ve heard about.”

These comparisons often lack the context or specificity to create a clear action plan. A skilled adviser can help clients unpack these statements by probing deeper:

  • Ask comparison-specific questions: “What does ‘not enough’ mean regarding your retirement? Have you calculated how much you’ll need to maintain your lifestyle?”
  • Clarify the reference point: “When you say your portfolio isn’t performing as well, what are you comparing it to, specific market benchmarks or something you’ve heard from friends or the media?”

Helping clients define what they mean turns ambiguous concerns into actionable goals, leading to constructive financial planning.

3. Verbs: Exploring what actions mean

Clients often use action words like “protect,” “build,” or “diversify” without fully explaining what these terms mean in the context of their financial goals. For example:

  • “I need to diversify my portfolio.”
  • “I want to protect my wealth.”

These verbs reflect intentions but lack clarity about the specifics required to act. As an adviser, you can help by digging deeper:

  • “What does ‘diversify’ mean to you?” For some clients, it might mean balancing equities and bonds; for others, it could involve expanding into alternative investments like real estate or private equity.
  • “What does ‘protect’ look like?” For one client, it might involve estate planning to ensure wealth preservation across generations, while for another, it might mean hedging against market volatility.

Encouraging clients to clarify what they mean ensures that your advice aligns with their objectives and priorities.

4. Self-limiting beliefs: Challenging constraints

Even high-net-worth and ultra-high-net-worth clients can hold self-limiting beliefs that constrain their thinking, even if their financial situations seem secure. For example, they might say:

  • “I have to hold onto this property because it’s been in the family for generations.”
  • “I must keep a significant portion of my wealth in cash because it’s the safest option.”

These statements often reflect deep-seated emotional or psychological drivers, such as fear, attachment, or tradition. As an adviser, you can help clients test these beliefs by asking questions that encourage them to explore alternative perspectives:

  • “What would happen if you sold the property? How would it impact your goals or your family’s legacy?”
  • “How do you define ‘safety’? Have you considered how inflation or opportunity cost might affect your cash holdings?”

Challenging these assumptions gently but effectively can help clients think more critically about their choices, enabling them to make decisions that align better with their broader financial strategies and goals.

Emotional intelligence: The catalyst for precision

The precision model is a powerful tool but becomes even more effective when combined with emotional intelligence. Why? Because many financial decisions are deeply emotional, even if they appear rational on the surface.

Here’s how you can weave EQ into the precision model:

  • Active listening: Pay attention to what your clients say and how they say it. Tone, body language, and emotional cues can reveal hidden fears or priorities.
  • Empathy: When challenging generalisations or self-limiting beliefs, do so with understanding. Validate your client’s feelings before introducing alternative perspectives.

Example: “Feeling nervous about changing your investment strategy is completely understandable. Let’s take some time to explore the risks so we can find a solution you are comfortable with.”

  • Self-regulation: Be prepared to manage your emotions, even if clients become frustrated or defensive when their beliefs are challenged. During difficult conversations, our emotions can be triggered or prevent us from raising challenges. The more in tune with and can manage your emotions, the better you can respond in real time.

Integrating EQ into your meetings can help you build deeper trust and rapport with your clients, making it easier to guide them toward precision and clarity.

Practical takeaways

To incorporate the precision model and emotional intelligence into your client conversations, try the following:

  • Prepare precision questions in advance: For common client concerns (e.g., retirement planning, risk tolerance, or estate planning), consider the clarifying questions you can ask to get to the heart of the issue.
  • Reflect on emotional cues: After each meeting, ask yourself: “What emotions did the client express? How did I respond? What could I do differently next time?”
  • Practice reframing: When clients express vague concerns or self-limiting beliefs, reframe their statements as opportunities:

Instead of: “I’ll never retire early.”

Respond with: “What would retiring early look like for you? What needs to happen to make it possible?”

Why this matters

Combining the precision model with emotional intelligence can elevate your client conversations from surface-level exchanges to meaningful dialogues. This approach helps your clients achieve greater financial clarity and reinforces your role as a trusted, empathetic adviser.

I’d love to connect if you’d like to explore how these tools can enhance your client relationships—or if you’re interested in workshops to develop your team’s coaching and communication skills. Book a call with me here, and let’s start the conversation.

 

This post explores the application of the Precision Model to adviser-client conversations. It adapts the original framework presented in Excellence in Coaching (2015), edited by John Passmore.