The New Era of Financial Advice: Transforming Client Experiences
The New Era of Financial Advice: Transforming Client Experiences
3
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
Advisers are no longer just financial experts, they are now at the forefront of providing transformative client experiences.
This shift in the industry is predicted to bring about significant positive changes, according to professional VBP chief executive, David Carney.
Carney believes that advisers are now in the business of selling "an experience" and that the financial industry is transitioning into the experience economy. He envisions a future where clients eagerly anticipate their reviews because it challenges their thinking and helps them set goals. A structured and well-organized meeting, incorporating digital tools, offers a staged experience that leaves clients feeling valued and empowered. This, Carney asserts, is the future of advice.
Putting the "Human" in Financial Services
Carney emphasizes the importance of majoring in humanity for all financial services professionals. He believes that intuition, shared learning, and personal experiences create lasting impacts. Carney recalls a time when he helped an orthopedic surgeon, who was financially successful but yearned to take a sabbatical and give back in Africa. Carney provided the confidence and permission needed for the surgeon to pursue this significant endeavor. Through his role as an adviser, Carney empowered the surgeon to make a positive difference.
While acknowledging the role of technology, Carney believes that it should be used to enhance the human aspect of the business. He predicts that in the near future, repetitive tasks, such as building fee disclosure statements, could be automated by bots. This would allow advisers to focus more on building meaningful relationships and providing personalized guidance. By leveraging technology in specific areas, advisers can access global best pricing and improve efficiency, ultimately boosting cashflow and profits.
Revolutionizing Talent Development
As the industry evolves, Carney contends that revolutionizing talent development is a crucial necessity for advice businesses. Traditional approaches of working behind the scenes for a couple of years are no longer sufficient. To attract and retain the best talent, businesses must fast-track development and shorten the learning curve. Firms that invest in developing their people and embrace innovative ways of training will ultimately thrive in an industry facing a massive shortage of talent.
Carney envisions future advisers as individuals who possess exceptional interpersonal skills, while also embracing the role of co-pilots alongside technology. This combination of human expertise and digital tools will create a dynamic and efficient advisory experience.
In preparing for the future, Carney advises advisers to brace themselves for the inevitable disruption. The industry has already experienced significant changes in the past few years, and more disruptions are on the horizon.
VBP recently signaled their commitment to the financial advice industry by acquiring Elixir Consulting. This move is aimed at expanding their service offerings and positioning the combined business as the go-to growth partner for advice firms seeking innovation and scalability.
In conclusion, the future of financial advice lies in providing transformative client experiences. By adopting a human-centric approach, embracing technology as an enabler, and revolutionizing talent development, advisers can navigate the evolving landscape and thrive in an industry ripe for change.
Published:Tuesday, 5th Dec 2023 Source: Paige Estritori
Please Note: If this information affects you, seek advice from a licensed professional.
The Australian Prudential Regulation Authority (APRA) has announced a significant policy change aimed at mitigating risks in the housing market. Effective February 2026, APRA will impose a cap on high debt-to-income (DTI) home loans, limiting such loans to 20% of new home lending. This measure applies to both owner-occupiers and investors, with an exemption for new housing developments. - read more
The Commonwealth Bank of Australia (CBA), the nation's largest lender, has raised concerns about the current high demand for home loans, which is contributing to escalating property prices. CEO Matt Comyn acknowledged that while the bank has benefited from the surge in housing credit, such high levels are unsustainable and could undermine long-term financial stability, housing equality, and market accessibility. He suggested that a more moderate pace of credit growth would be beneficial. - read more
As Black Friday sales gain popularity in Australia, consumer advocates are raising concerns about the financial strain these events place on individuals and families. The allure of significant discounts and the social pressure to participate in these sales have led many Australians to increase their credit card debt, potentially exacerbating financial stress. - read more
A credit rating is essentially a numerical representation of your financial trustworthiness. It's like a report card for your creditworthiness, where higher scores indicate better financial habits. Lenders and financial institutions scrutinize this score when you apply for credit, serving as a primary factor in approving or denying loan applications. - read more
Creating a sturdy financial foundation is essential for Australians navigating the often turbulent waters of debt. A bulletproof budget does more than just track expenses; it acts as a buffer against unexpected financial downturns and provides a clear path toward financial freedom. Comprehending the full weight of this importance is the first step to turning one's financial destiny around. - read more
Welcome to the digital age, where online loans in Australia offer convenience and accessibility like never before. With a few clicks, financing for your next big purchase or consolidation of existing debts is at your fingertips. However, venturing into the world of online lending without a compass can leave you navigating choppy waters. - read more
Knowledgebase
Interest Coverage Ratio: A measure of a company's ability to make interest payments on its debt, calculated as EBIT divided by interest expense.
