Making sense of the changes in the financial services sectors - Part 2.

The Changing face of Advice

The difference, to me is clear…. Gone are the days of clients wanting your advice. The old model of a client who is uneducated and comes to you to get your professional advice on ‘what to do’ with their finances are fast disappearing. The internet and social media has connected us all to masses of information and the ability to research and compare quicker than ever before. The future tech savvy client has more knowledge, control and access to information.

So what does the modern client really want and need?

It’s what we all want… we want guidance and direction. The modern day client wants a money coach. Now, before you jump to the conclusion that you’re not a coach, or any version of that… please understand what this really means to them, and to you.

To the client, this translates as someone who is professional, knowledgeable, credible, confident, friendly, relate-able, genuinely interested in their needs (rather than your own), consistency, able to communicate clearly and effectively, adaptable, and up-to-date.

To you, the professional adviser, this translates as someone who is transparent, professionally appropriate, credible and trustworthy, a great listener, intuitive, an excellent communicator, confident, approachable, and generous.

Naturally, there are a number of commonalities within the above with the primary focus being on the client by understanding, interpreting and meeting their needs. This does not translate to ‘making their decisions for them and taking on their responsibility for their choices. As I said earlier, gone are the days of clients wanting your advice. In fact, giving advice, or telling a client what to do with their money occurs as arrogant, impersonal, and selfish. I’m not at all says that all advisers are relinquished of any or all professional responsibility, duty of care or compliance. In actual fact, in this rapidly changing landscape, the reverse is happening. The good news, is technology brought by the fintech start-ups are also rapidly bringing solutions and platforms that will not only make your job easier, but will also elevate your relevance and value proposition.

However, no matter how much technology changes and improves, and no matter how much products and services change and improve, clients will always want and need a professional that know, like and trust to provide them with access to solutions, answers and tools.

In these times, there are naturally winner and losers across the board. This poses many questions of how to deal with the changes and how to benefit within these times and if not gain ground, at least being able to protect your turf.

I have a few thoughts and opinions that I’ll share and ponder. I’ll touch on a number of the key concerns and trends in the next part of this blog such as the impact of social media, generational change & the rise of the fintechs.

If you have any questions or contributions relating to this article, please take the time to comment below and share your thoughts or opinions for the benefit of others reading this. No doubt this topic commands interaction, innovation and collaboration. The more answers that are delivered, the more questions that will arise. If you have any personal questions or queries, please feel free to contact me on 0434 455 225 or email: [email protected]

About the author:

John Maxwell is founder and Senior Finance & Business Strategist at Cocalex Consulting. John has over 17 years' experience in the financial services sector, and has owned and managed 9 mortgage franchises and has developed a background across the holistic financial services realm. He has particular focus and passion for: Leadership Training and Development, Franchise Development and Business Networking.