Trust is the cornerstone of any successful relationship. For financial advisors like one-year MDRT member Derek Tan, who serves a wide range of clients from 19 to 65 years old in Singapore, building and maintaining trust goes beyond providing sound financial advice. It requires clear communication, ethical transparency, and a genuine commitment to the client’s well-being. Tan shares his approach to fostering trust, creating lasting, meaningful relationships with clients, and offer valuable insights for financial advisors seeking to elevate their client relationships.

1. Establish trust with clear communication

Tan emphasizes the importance of establishing trust with new clients from the very beginning. His approach starts with clear communication, focusing on transparency and understanding his clients’ needs. "I establish trust by being transparent about my process and expectations and paying close attention to their concerns. Before offering advice, I listen to their problems and ensure I fully understand their needs," he explains.

The foundation of trust, according to Tan, lies in listening before advising. By putting the client’s concerns first, he demonstrates empathy and a commitment to finding tailored solutions, which helps clients feel heard and valued.

In Tan’s experience, truthfulness and transparency play a big part as well. He believes that being honest, even when the truth is complex or uncomfortable, is key to long-term relationships.

“Truthfulness means sharing accurate information without exaggeration or omission,” he says, encouraging financial advisors to provide all information about a policy — including its benefits and potential drawbacks. Essentially, Tan ensures his clients understand what they type of coverage and returns they can expect from a policy before they commit to one. He adds, “I avoid any form of fabrication and make sure clients know my intentions and any potential conflicts of interest.”

For Tan, being open and transparent is not just about ethical responsibility; it is also about earning the trust of clients who are entrusting him with critical financial decisions. The more transparent he is, the more comfortable his clients feel, which lays the groundwork for a lasting partnership.

2. Reliability and responsiveness

Beyond honesty, reliability is integral in trust-building. Following through on promises, being consistently dependable, and responding to client needs in a timely manner reinforce his clients’ confidence in him.

“Reliability means delivering on promises and responding to clients as soon as possible, no matter the circumstances,” Tan shares. “Once, I was on holiday in South Korea when one of my clients collapsed and was rushed to the hospital. At 1 a.m., he called me, and I reassured him about the arrangements for his stay, and that his bills will be covered by insurance. This quick response helped ease his worries during a difficult time, and I believe it strengthened our relationship."

On another occasion, Tan took care of all discharge procedures for his client. “My client underwent surgery and I went to the hospital to assist with his discharge. My support during that difficult time meant a lot to him, and as a result, he referred me to several of his friends and colleagues, who have become my clients now.” Tan recalls.

These small but meaningful gestures show clients that Tan genuinely cares about their well-being, both financially and personally. His commitment to always being available shows clients that he is deeply invested in their well-being regardless of how far away they are. It is this level of responsiveness and dedication that forges stronger, more trusting relationships.

3. Recognizing when trust is established

Tan knows a client trusts him when they actively engage with him and confidently follow his advice. He points out that clients who trust him are more likely to share personal details such as struggles they are facing at home or at work. They also listen more attentively with less interruptions and are comfortable referring him to their friends and family.

“When a client refers to me as their financial advisor and feels comfortable sharing their personal struggles with me, I know I’ve earned their trust,” Tan shares. “One client, for example, had a bad experience with other advisors who didn’t understand his needs. When he met me, he was surprised that I provided him with policy solutions that were tailored to his. This level of trust made our collaboration enjoyable and seamless." This client, in particular was looking for an affordable insurance that would provide coverage until his retirement age. However, he found that previous financial advisors he had consulted were only focused on recommending policies that they thought suited him, until he met Tan, who listened to his needs, and provided him with a policy that met his requirements.

On the other hand, Tan notes that when clients ask more than four or five questions at a go, or are keen to seek a second opinions from other financial advisors, it can be a sign of mistrust. In such cases, he usually advises these clients to work with another financial advisors, as trust is essential for a long-term, successful relationship.

4. Avoiding common pitfalls

Tan stresses the importance of being consistently responsive and communicative to avoid common pitfalls in client relationships. One of the key challenges is making sure clients never feel undervalued or ignored.

“Failing to respond promptly or communicate regularly can lead to misunderstandings,” Tan warns. “I always strive to keep clients informed, whether it’s about progress, challenges, or changes in their policies.”

To prevent dissatisfaction, he schedules annual reviews to ensure his clients stay informed about any policy updates and to check for any significant life changes that could affect their financial plans.

For Tan, building trust with clients is not a one-time action but a continuous process that requires effort, honesty, and reliability. By fostering open communication, being transparent and dependable, and forming personal connections, financial advisors can build relationships that last for years.

"Trust is the foundation of any successful relationship, and once you have it, maintaining that trust is what turns clients into lifelong partners.” Tan shared.

Contact: MDRTeditorial@teamlewis.com

Search

Building trust and long-term relationships with clients