From Networking to Necessity: The Relationship-Imperative in Finance

When people think about B2B or financial services, their minds often jump to money, numbers, KPIs, returns, and other tangible metrics. In today’s world, the conversation is increasingly dominated by how AI is the future of everything. A focus on tech and hard numbers makes us think of machines and platforms, algorithms and data. But if you take a step back, it all boils down to people building great ideas with the right tools. And what truly drives great ideas? Relationships, collaboration, and trust.

At Ricciardi Group, we talk a lot about the idea that “relationships are gold.” It’s core to our ethos: in how we work with one another, but also in how we build our network and strengthen client relationships. Across every client throughout 2024, the theme of building stronger relationships continuously comes up across the messaging we develop, the conferences we attend, the webinars we watch, the case studies we develop, the workshops we conduct, the client feedback loops we implement, and campaigns we design. 

As the global wealth landscape evolves, so too does the approach to financial services. Influencers like Vivian Tu, an ex-JP Morgan trader turned personal finance guru, connect with younger audiences on platforms like TikTok, exemplifying how financial advice must now be more personalized and relatable to resonate with the next generation of wealth owners. This shift highlights the growing importance of human connection in an industry traditionally driven by numbers.

As I navigated the Wall Street Journal Future of Everything this spring, many conversations centered around the importance of building relationships. In a world increasingly dominated by technology—particularly artificial intelligence—amidst economic uncertainty and geopolitical turbulence, the creation of authentic, long-term relationships has always been seen as the future of finance. However, with the Great Wealth Transfer in full force and competition between financial institutions acceleratating, this focus feels more urgent now than ever before. Building enduring client connections is no longer just an ideal; it’s a critical imperative in navigating the complex landscape of modern finance.

Here are some of my learnings from the conference:

Relationships are a critical tool to private investment 

“Great companies are built brick by brick over a long period of time, and creating a strong partnership with company owners, company management is absolutely foundational to how I think about building businesses,” says Warren Buffett’s protégée, Tracy Britt Cool, at the WSJ Future of Everything conference. Cool founded Kanbrick in 2020—an “investment partnership” firm building businesses for the long term as an alternative to traditional private equity firms. She discussed the proactive relationship building she does with compelling founders to lay the groundwork to organically become capital partners in the future. In her opinion, transactional finance is a thing of the past. 

Cool believes private equity has historically focused on quick wins and high returns. However, the landscape is shifting. The uncertainty of the market, longer hold times, and higher interest rates means that firms can no longer rely on market conditions or financial engineering. There is an urgent need for innovative approaches to value creation. 

We see this all the time with our clients, who, like Kanbrick, emphasize the importance of building proactive and resilient relationships with management teams. These teams can then create aligned and innovative plans for value creation. This approach not only fosters trust but also leads to more sustainable growth and long-term success. 

Kanbrick’s philosophy centers around partnering with founders who share a long-term vision. According to Cool, “Our goal is to support exceptional companies by building meaningful relationships that stand the test of time.” Therefore, Kanbrick looks for the following in a company:

1. Strong, transparent leadership: Leaders who are open and honest create a foundation of trust.
2. Consistent financial performance: Stability and reliability are crucial for long-term growth.
3. Ethical business practices: Integrity and ethical behavior build lasting reputations.
4. Growth potential and innovation: Companies that innovate and adapt can sustain growth.
5. A culture of collaboration and trust: A collaborative culture enhances productivity and morale.

Similar to Kanbrick, Carter Reum emphasizes the importance of relationships in building his venture community at M13. At M13, he believes in partnerships that balance each other; he works to complement his founders with the venture community of experts he curates. While this idea is not entirely unique to what we’ve seen at other venture firms, his branding of it is: calling it a Propulsion system that puts founders at the center and allows multiple M13 partners to fill expertise gaps beyond a singular capital provider.

Source: M13 Approach

Relationships as tools for transformation 

In his WSJ talk, Ray Dalio emphasizes that relationships are fundamental to both the dynamics of markets and the potential to change them. Drawing from his extensive research for his book Principles for Dealing with the Changing World Order, which spans 500 years of history, Dalio identifies five key forces that shape the world order: debt levels, internal conflicts, international power struggles, acts of nature, and technological advancements. By analyzing these patterns, he suggests that we can anticipate and influence market cycles, much like diagnosing and treating a disease. Dalio advocates for a broader perspective on markets and culture, using historical events, such as the post-WWII era, to highlight recurring patterns of conflict and renewal.

He highlights that despite current challenges, our decline is not inevitable; it hinges on how we manage relationships and conflicts. Dalio believes that addressing today’s high debt levels, political divisiveness, and great power conflicts requires better interpersonal and international relationships. Of course, the path to get there requires a lot of patience, empathy and listening. By focusing on how we treat each other during conflicts, we can break the cycle and build a more resilient future. 

How do we build better relationships? 

I began to consider: what then is the process for listening or working better together? Surprisingly, I got the answer from Second City, a renowned comedy theater and education hub. 

In one session, we tested out the “Yes, And” technique with Second City’s CEO, Ed Wells. The tool is used in improvisational comedy to encourage a mindset of acceptance and addition. The exercise consisted of three parts where we worked with a partner to plan the ideal party:

• In round 1, “No, because,” the energy in the room quickly deflated as each idea was immediately rejected. 
• In round 2, “Yes, but,” offered a glimmer of hope, yet still left participants feeling discouraged as ideas were only partially accepted.
• It wasn’t until Round 3, “Yes, and,” that the room felt truly energized. Each idea was embraced and expanded upon, transforming the conversation into a dynamic and creative dialogue that led to a shared vision. This technique fosters open-mindedness and creative problem-solving, essential for balanced and successful partnerships.

As we look to the future of financial advising, the ability to build these kinds of dynamic and authentic relationships becomes even more critical. Also at the WSJ conference, Vivian Tu, with 2.5 million TikTok followers, is redefining how financial information is shared, making it more accessible and engaging for Gen Z and Millennials. Tu’s success underscores a broader trend: financial advisors must go beyond traditional roles, adopting innovative communication methods and a more personalized approach to connect with the unique needs of digital-native audiences. As she aptly puts it, “I’m not your father’s Financial Advisor.” And she’s right. The financial landscape today requires advisors to evolve, offering tailored services that address the specific needs of diverse populations.

Vivian Tu, founder and CEO of Your Rich BFF, tells WSJ’s the Future of Everything Festival how the next generation is redefining the concept of “happily ever after.”

Just as the “Yes, And” technique encourages collaboration and innovation, the future of financial planning demands that advisors build authentic, trust-based relationships that are adaptable and responsive to the unique needs of each client. In this new era, one size certainly does not fit all.

What does this mean for financial/B2B marketing?

Building strong, ethical, and collaborative relationships has always been the cornerstone of long-term success in finance. As AI continues to transform the industry and we navigate the complexities of the Great Wealth Transfer, these relationships have become more crucial than ever. In an era of fierce competition among financial institutions, firms that prioritize human connections will not only lead, but will also create resilient financial ecosystems that can withstand uncertainty. As one client aptly puts it, “People invest with people they trust.”

At Ricciardi Group, our approach to B2B has always been about humanizing brands and emphasizing their connection to all of its stakeholders. In industries where differentiation can be slim, the nuance of human connection not only wins, but insulates brands in highly competitive categories. 

This nuance can lend itself to more accessible branding – for example, moving away from the trusted financial blue towards colors that are inviting and tied to the uniqueness of the brand’s unique DNA. It can look like replacing stock imagery with thoughtfully crafted photography. It can mean crafting human friendly language that more quickly allows your customers to understand the benefit you provide as their partner. It’s about developing go-to-market strategies that foster conversation, not just content.

As our agency celebrates its 10th anniversary this year, we’ve been reflecting on the importance of strong relationships. While we know they’re vital to the future of finance, they’re also at the heart of our team’s success. These relationships are the foundation that enables us to deliver insight and creativity, solving the business challenges of the most complex and revered B2B brands.