Bringing the human element into financial planning

While there has been talk of artificial intelligence taking over the financial planning profession, those in the profession have refuted it, as financial planning is one of the ultimate human-centric professions. Financial planners take in a person’s financial fears, worries, hopes and dreams and help them plan for a future in which they can be confident their money will enable them to accomplish their goals.

For that to occur, granular and sometimes uncomfortable conversations must take place. People bare their souls to financial planners as they explain things like wanting their child with special needs to have as few financial concerns as possible or they are financially responsible for their parent who has been fortunate enough to live a long life but has outlived their funds. 

To have these honest and frank conversations, consumers must feel comfortable enough with their financial planner to know that the information they divulge will not only be respected but also truly heard and acted upon with the best intentions to improve their lives and those of their loved ones. That does not happen with a person who is not committed to the financial planning process and relationship. This happens with a trusted financial planner, a core member of that consumer’s inner circle.

How do financial planners achieve that kind of client relationship? By leaning into their empathy and humanity.

To that end, the Financial Planning Association created the FPA Competency Model last year, providing financial planners with a framework for not only developing technical knowledge but also mastering the behavioral skills needed to work effectively with clients.

Six focus areas

The model focuses on six behavioral areas for financial planners to assess their level of mastery and pursue continued education and development in areas that need attention. The six areas are interpersonal impact, professionalism, leadership, critical thinking, client communication and care, and advancing the profession. Let’s consider two of those areas — interpersonal impact and professionalism — and the opportunities they afford planners to be more human with their clients.

Interpersonal impact encourages greater awareness of gender, racial, religious and other forms of diversity, enabling financial planners to build a deeper connection with their clients. There is a stark difference between putting up holiday decorations and understanding that a client meeting should not be scheduled on a high holiday of great religious significance. Although some investors may shrug off the fact that their financial planner did not consider their religious preferences, it is the professional who appropriately acknowledges and respects clients at their core who forms the best relationship.

Effective listening is also encouraged. This is a skill many may think they have mastered, but true listening is not about determining when to respond; it is about hearing the other person and giving them space to be themselves. Really “hearing” someone is a huge step toward gaining their trust and confidence in you.

Developing the best listening skills can mean being aware of when a client needs their financial planner to give them space to express their feelings instead of simply trying to solve a problem. This can be challenging, but being aware that clients sometimes need a willing and receptive ear rather than a problem-solver will endear them to their financial planners.

In the area of professionalism, one of the most important concepts to keep in mind is managing stress effectively. Planners can burn out from their often-grueling schedules or from being the vessel for clients’ financial woes. Financial planners who effectively manage their own stress are best positioned to help their clients do the same.

Financial planners can effectively manage their own stress by remembering that they must take care of themselves before assisting clients, just in a flight emergency they would put on their own oxygen mask before helping a loved one. This means ensuring proper rest and making space for themselves to do the things that they enjoy and love, even if it’s just an hour or two a week. Practicing breathing techniques or meditation may also be effective.

Financial planners who lean into their humanity and that of their clients will never be replaced by AI, as that depth of emotion and awareness cannot be replicated. AI can provide tools that allow financial planners to spend more time with their clients and emphasize their own humanity.

Dan Galli, CFP, is the 2026 president of the Financial Planning Association and is the principal of Daniel J. Galli & Associates in Norwell, Mass. Contact him at [email protected].