Why should financial advisers educate their clients on safe online payment practices? For one, it builds trust, encouraging engagement. It also reinforces their personal brand and helps them justify their fees. In short, it’s good for business. How should they approach education? There are 10 main strategies to consider.
1. Educate During Acquisition
Financial advisers should incorporate education into the acquisition process since a surprising number of people are worried about their online financial security. According to a Statista survey, 59% of people felt concerned about online payment fraud in 2022, an increase from 2021. Workshops and knowledge-building sessions can act as a selling point.
2. Explain Technical Jargon
Some recommend avoiding technical jargon, but that approach is unrealistic. While it is best to use plain language if a simpler synonym exists, true understanding comes from familiarity with industry terminology. Clients will likely encounter common terms and phrases on their own, so explanations are helpful.
They should know what basic terms like cyberattack, breach and encryption mean. Discussing more complex concepts is only necessary under certain circumstances. For instance, those who trade or pay with cryptocurrency should understand smart contracts and hot wallets.
3. Start With the Basics
Financial advisers shouldn’t assume everyone who walks through their door understands the basics of cybersecurity. Forbes research shows that 20% of Americans have conducted financial transactions on public Wi-Fi, which is notorious for security vulnerabilities. Starting with the little things ensures they build a strong foundation.
4. Consider Follow-Up Questions
People who lack understanding may not know what to ask during education sessions. Professionals should prepare several follow-up questions to help guide the conversation. This way, they can maximize their impact.
5. Teach Clients About Risks
Whether people are paying rent, shopping online or sending their share of the bill, many use online payment methods. Research shows 59% of people use digital wallets regularly. Around 35% of them have two or three.
They may be familiar with the technology, but that doesn’t mean they understand its risks. Financial advisers should introduce them to cybersecurity concepts and best practices to ease them into the reality of data breaches, fraud and unauthorized account takeover.
6. Discuss Useful Safety Tools
Generally, multifactor authentication, biometric verification and password managers provide enough security for the average person. However, it varies depending on their online habits, technical knowledge and payment practices. Professionals should work with individuals to personalize their selection based on their needs.
7. Share Educational Materials
Routinely sending infographics and educational materials via email or text keeps clients informed when it matters most — when they’re between meetings. Small, personalized tips may make more of an impact.
8. Outline Trustworthy Platforms
Determining which platforms are trustworthy can be challenging since even the biggest are prone to noncompliance. The Consumer Financial Protection Bureau fined Block Inc. — Cash App’s operator — and mandated up to $120 million in refunds after it allowed fraud to proliferate. It had closed fraud reports without opening legally required investigations.
The safest platforms deploy identity authentication and end-to-end encryption. Ideally, data breaches and regulatory noncompliance are rare. While the decision is ultimately their own, financial advisers can provide guidance.
9. Establish an Open Dialogue
A Pew Research Center report found that just 20% of online payment platform users are extremely or very confident that these services keep their information secure. However, 76% of people in America have still used at least one of the four major digital payment apps.
As this technology becomes more prevalent, people may feel forced to use it. Establishing an open dialogue can keep them from making costly mistakes, especially in time-sensitive situations.
10. Practice What You Preach
If financial advisers endorse a specific payment platform for its trustworthiness, they should use it on their website. Similarly, if they recommend a particular cybersecurity practice, they should follow it themselves. Modeling is incredibly important for building trust and establishing credibility in this industry.
Helping Clients Establish Safe Online Payment Practices
People will get their information from somewhere, so it is best if it comes directly from a trusted financial adviser. Taking on a teaching role in this capacity shouldn’t require much additional work since cybersecurity education and digital financial tools go hand in hand. The foundation already exists — professionals just have to refine it to align with their clientele.