5 must-know tips for financial advisors going virtual

Yahoo

21-05-2025

Zoom calls and screen sharing may feel like the norm for many financial advisors these days, but the rise of virtual advising is still a relatively new development in the world of wealth management.
Before the pandemic, just 13% of clients met with their advisors virtually, according to research from YCharts. By 2024, that figure increased by nearly threefold, with 38% of clients saying they meet with their advisors virtually.
The COVID-19 pandemic may be the catalyst that ignited that trend, but advisors say the shift to virtual practice is here to stay.
Even with the rapid growth of virtual advising over the last five years, the industry is still at an early "inflection point" in the journey toward digital practices, said Aaron Cirksena, founder and CEO of MDRN Capital in Annapolis, Maryland.
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"We wanted to get ahead of it, because I saw [the change] back in 2023 when I made the full shift [to a virtual firm] and I said, 'I'm just doing away with office space,'" Cirksena said. "The whole reason was because … I asked my in-person clients who lived five minutes from my office if they wanted to come back in and meet with me in person, and 80% of them said, 'No, we'll just keep doing Zoom meetings. It's easy.'"
That preference for virtual meetings is especially strong among wealthier clients. Asked about how they would prefer to meet with their advisor, 43% of clients with more than $500,000 under management said they prefer virtual meetings, according to YCharts research.
"The wealthier people, the ones we typically deal with, they value their time over everything," Cirksena said. "They don't care where the best person is. They don't care about meeting or shaking hands with the best. They just want somebody that they view as being the best, most knowledgeable in any job that they're going to hire somebody for, and they want to make sure that they are getting to spend their time as efficiently as possible."
Advisors say that getting started in a virtual firm can be relatively simple compared to a brick-and-mortar operation. But simply operating a digital firm is different from excelling in it. For advisors looking to kick their digital practice into the next gear, here are five things to know about operating a successful virtual firm.
Serving a niche clientele can benefit most advisors, whether or not they're virtual. But when a virtual advisor finds themselves competing with other advisors from across the country, differentiating themselves through a niche specialization is vital.
Still, advisors who have been successful in the virtual advising world say going hyper-specific isn't always necessary.
"I kind of feel like I did a pseudo niche," said Autumn Knutson, founder of digital-native firm Styled Wealth. "I work with impact-driven individuals. And sometimes people say, 'Well, what is that?' A lot of times, people have an understanding of what that is. That understanding varies, I will admit, but most people have their own understanding of what that is. And if that resonates with someone, then we may be a very good psychographic fit."
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For virtual advisors like Knutson, working in a niche isn't just for marketing purposes, it's also a way to ensure her firm is attracting clients it wants to work with.
"I want everyone … to find a good fit, but that fit is not always me," she said. "And so I've tried to niche and be very intentional for people to know who I am, what I'm going to provide, what the experience is like."
Virtual advisors can often forgo traditional costs like commuting and office space, but one place they spare no expense is their tech stacks.
"Tech is what I spend the most money on," Knutson said. "I care very much that it's well-fitting to the experience that I want, to the efficiencies I care about."
READ MORE: Ask an advisor: What AI tools are financial advisors using right now?
Tech is far from exclusive to virtual firms, but the capabilities the two kinds of firms need can necessitate different software, advisors say. CRM and custodian options that work well for a local firm may not translate well to a virtual practice. Cirksena, who used BNY Pershing as a local advisor, made the switch to Altruist after going virtual.
"Altruist has worked very, very well for a fully virtual advisor. Their platform is excellent," he said. "It's all digital account opening and everything."
"There's nothing that we can't do virtually … that somebody can do in person," Cirksena said. "You just have to think about what you would do in every aspect of the job if you were in person. And then you need to think about, 'Does that need to change in some small way, doing things virtually?'"
Marketing on a national level is no small task for virtual advisors. At MDRN Capital, which had roughly $150 million in AUM in 2024, Cirksena said they spend close to $500,000 a month on marketing.
"We know what our client acquisition costs are, so we know that those are profitable dollars for us to spend," Cirksena said. "But it's different when you're marketing on a national scale. You're not competing with the Edward Jones office that's down the street, or the local independent guy who's down the street. You're competing against Fidelity. You're competing against Fisher Investments, Creative Planning, Vanguard, Mariner Wealth — like those are the ones you're competing against, essentially."
Marketing on platforms like Facebook and Google can become a major expense for many virtual advisors, but competing on a national scale also requires that advisors do more than simply buy ads. Creating finfluencer-esque content that provides value to viewers can be an effective way to accomplish that, advisors say.
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"If you put out good content and you don't ask for anything in return … people will find it," Cirksena said. "And when they eventually are at the stage that they're looking to work with an advisor, if they're open to working with somebody nationally, who's the first person they're going to think of calling? They're going to think of the person that they've seen or heard who added value to them, and who didn't ask for anything in return for the value that they gave them."
Alongside sharing things like educational content, advisors say authenticity is key to marketing in a saturated market.
Tim Witham, founder of Balanced Life Planning in Villa Hills, Kentucky, said that even a simple video on his homepage has helped clients connect with him.
"They're like, 'We loved what you had to say. You were very laid-back,'" Witham said. "It wasn't a perfect video. It's kind of weird, clients actually appreciate that you're human, and it's not like super edited."
Knutson followed a similar style when writing the copy for her website.
"I spent a lot of time … on the copy of my website, making sure it's my voice and not just something that looks pretty," Knutson said. "I've gotten numerous times people say, 'Oh, I met you and you sound like your website,' because it's my voice, it's my words, it's my heart, and that's my storefront."
Beyond the technical work of financial planning, advisors say that connecting with clients on a personal level is essential to creating strong relationships. Virtual advisors don't have the benefit of sitting across a table from a client or going out to lunch with them, but advisors like Knutson say that deep, intentional listening can go a long way toward closing that gap.
For Knutson, she creates that connection by "naming curiosities" in conversations with her clients, asking questions like "What was that pause about? Can you bring me into what was going on in your head?"
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Even simple things — like looking into the camera properly on a video call or communicating promptly — can make a big difference in creating a sense of trust with a client, Knutson said.
Creating that trust over virtual calls can be more difficult with older clients. But Cirksena said that age isn't as big a barrier as it's often made out to be when talking about advising clients virtually.
"Is there going to be a small percentage of people who are over 75 years old, who wouldn't want to open a Zoom meeting? Maybe. But everybody now, between the ages of 55 and 70 even, 90-plus percent of them are totally comfortable with opening a Zoom meeting," Cirksena said.
Advisors are often thinking about what they can do to make their virtual practice mirror a local one, but digital-first advising also provides the opportunity to advise clients in ways that local planners rarely utilize.
Knutson and Witham both use forms of asynchronous communication with their clients as a way of differentiating their firms.
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For busy clients, Witham said he will record a video of himself reviewing a client's financial plan and send it to them, so they can watch it in their own time. After watching the video, Witham and the client can have a more efficient call that saves the client time.
"I live my target niche. I am my demographic, which I think helps me a lot. I've got three kids — two are going to be in high school, and one's on the way. So like, my evenings are insane," Witham said. "Having to think about, 'Hey, I gotta meet with a financial planner to go over my plan,' can be really freaking hard to try to find the time to do that."