Measuring Trust in a Private Banking Relationship
A Private Banking View episode 3
More than anything else, trust and client relationship is the single one competitive advantage in private banking, but how can you measure trust? Before it is too late I mean…
Trust goes far beyond portfolio performance or client satisfaction which are just contributors to trust.
To measure trust, you could ask client. Reality is that to get an unbiased answer, you already need a certain level of trust…
I propose an easier way.
Ask yourself a series of questions on how your client responds to your interactions. Easy, as you can observe it by yourself.
I designed this questionnaire with a ladder in mind. The higher you climb up the questions, the higher the trust.
Looking at the questions gives you a sense of how deep you are able to go into the relationship, and what you may want to do to go deeper. It also helps to anticipate the next question you need to ask. This is essential if you want to retain and grow your revenues.
Remember, a client centric bank constantly identifies more and more needs with each existing client (when a product centric bank looks for more and more prospects to sell their products).
The questionnaire relies on the work of two renowned psychologists, Joseph Luft and Harry Ingham on the Johari window, translated into the wealth management world.
With this approach, you can objectivize, standardize and benchmark your trust score.
I would advise to question yourself after each client interaction and see how your score evolves. You could even integrate the questionnaire in your client journal software…
You can access the tool here.