By Diana Tisescu, Client Relationship Director, Luxembourg
The asset management industry has undergone significant transformation over the past two decades, evolving from a numbers-driven business to one that increasingly values emotional intelligence and client-centric approaches. In this dynamic landscape, empathy has emerged as a leading skill that differentiates exceptional asset managers. As someone who has recently joined IQ-EQ, an organisation that prioritises empathy in client interactions, I can attest to the profound impact this approach has on both client satisfaction and business success.
The evolution of client needs and expectations
Over the last 20 years, the financial services sector has seen a dramatic shift in client expectations. With the advent of digital technology and an abundance of information at their fingertips, clients are more informed and discerning than ever before. They demand transparency, personalised service, and a genuine understanding of their unique circumstances and goals. The 2008 financial crisis further heightened this need for trust and accountability, pushing the industry to reassess how it engages with clients.
Moreover, societal changes have also played a significant role. Increasing awareness around issues such as social responsibility and ethical investing means clients now expect asset managers to align with their values. The rise of ESG (Environmental, Social, and Governance) investing is a testament to this trend. As clients look for more than just financial returns, asset managers must demonstrate an understanding of their broader life goals and concerns. We all want to feel understood, and this is no different in the client relationship service. If you don’t understand your client and their needs, wants and aspirations, you simply can’t perform an outstanding role in partnering with them.
Beyond technical understanding
While technical knowledge remains a fundamental requirement in asset management, it’s no longer sufficient on its own. The complexity of modern financial markets and the sophisticated needs of clients mean that asset managers must go beyond numbers and analytics. Empathy allows professionals to build deeper, more meaningful relationships with clients, fostering trust and loyalty.
Technical expertise can explain market trends and investment strategies, but empathy helps in understanding the client’s personal journey, fears and aspirations. It enables asset managers to anticipate client needs, provide reassurance during market volatility, and tailor advice that resonates on a personal level. This holistic approach is essential in an industry where trust is paramount, and relationships can span decades. I’ve spent 20 years crafting my technical and leadership knowledge and fine tuning my ability to empathise, as well as understanding that any relationship requires the human touch. Bringing your true self to the relationship is what creates the bond necessary to build trust.
Empathy as a differentiator
At IQ-EQ, empathy is not just a buzzword; it’s a core value that permeates every aspect of our business. We recognise that our clients entrust us with their financial futures, which demands a service approach rooted in genuine care and understanding. Our commitment to empathy is evident in how we interact with clients, employees and the broader community. Our employees are onboarded based on values they share with us and our clients.
Here are a few examples of where a business should prioritise empathy in their interactions:
Client relationships
Empathy in client relationships means actively listening to clients’ stories and understanding their unique financial and personal contexts. This approach allows us to offer customised solutions that align with their specific needs and long-term goals. By placing empathy at the forefront, we differentiate ourselves in a competitive market, ensuring that our clients feel valued and understood.
Employee engagement
A culture of empathy also extends to employees. Empathetic leadership fosters a supportive and collaborative work environment. When employees feel understood and appreciated, they are more engaged, motivated, and capable of delivering exceptional service to clients. Our commitment to empathy ensures that we attract and retain top talent, further strengthening our ability to serve our clients effectively.
Overall business strategy
Empathy should influence overall business strategy by guiding decisions and actions towards positive societal impact. Whether it’s through our involvement in community initiatives or focus on sustainable investing, empathy shapes how we contribute to the world beyond financial returns. This holistic approach not only benefits society but also enhances our reputation and builds stronger client relationships.
My journey to IQ-EQ
My decision to join IQ-EQ was deeply influenced by the organisation’s emphasis on empathy. Throughout my career, I’ve witnessed the transformative power of empathy in client relationships and organisational culture. At IQ-EQ, I found a team that shares my belief in the importance of understanding and addressing the human aspects of asset management. I’m grateful and humbled to be working with a client list which is not only allowing me to bring myself to work every day but also teaching me new things with every interaction.
Empathy is a vital skill in the asset management industry, enabling professionals to build trust, understand client needs, and provide personalized service. As client expectations and societal values evolve, empathy will continue to be a key differentiator for organisations in the asset management industry. By prioritising empathy in our interactions with clients and employees, we not only enhance our business success but also contribute positively to the broader financial ecosystem.
About the author
Diana is a Client Relationship Director at IQ-EQ Luxembourg, specialising in funds, real estate and alternative investments. With over two decades of international experience, Diana is an expert in managing and enhancing client relationships in key investment sectors, delivering bespoke solutions and optimising strategic insights.
