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Research reveals interesting insights on the value of financial advisers

25 July 2018Johan Minnie, Liberty
Johan Minnie, Group Executive, Distribution and Bancassurance at Liberty.

Johan Minnie, Group Executive, Distribution and Bancassurance at Liberty.

At least 70% of consumers with a financial adviser are more confident about their current financial situation. In addition, they believe that their financial situation will improve significantly over the next five years.

These are just some of the insights that have been revealed in a research study conducted by Columinate, on behalf of Liberty this Savings Month, in an effort to understand how people relate to financial advisers.

The research reveals that 22% of the respondents without financial advisers believe that they are too expensive, while 19% believe that financial advisers won't add value to their lives.

"This piece of research identified interesting facts and some misconceptions about the people that play an important role in helping consumers plan for life's uncertainties, including building wealth throughout different life stages," said Johan Minnie, Liberty's Group Executive, Distribution and Bancassurance.

"As an industry, we understand the dynamics and nuances of the economy and the impact it has on our savings culture. The reality is that everyone needs help in navigating their financial journey, and this is where financial advisers become valuable. The issue of cost is a real concern for many. However, a financial plan and solutions are always tailored to the client's individual needs," Minnie says.

Financial Adviser Carlo Gil "As advisers, we need to continue working towards educating consumers on the value that we bring in ones' financial journey."

Obvious gaps between financial advisers and consumers

Columinate Digital Research Specialist, Amoné Redelinghuys revealed more insights from the research:

- Those with Financial Advisers were more likely to be males between the ages of 35 and 44 years.

"Those who had financial advisers are mostly males aged between 35 and 45 found value in them," says Redelinghuys.

- 70% of consumers that partner with a financial adviser claim to be better off

Only one-quarter of those without a financial adviser have seen marginal improvements in their financial growth. However, almost half of those without financial advisers have remained stagnant or have watched their financial situation get worse over a period of five years.

- 1 in 5 South Africans would appreciate the input of a financial adviser; they just don't trust them enough to pursue this relationship.

Only 21% are very or extremely likely to get an FA and when asked why, said that they would appreciate the value add of advice.

Both those with financial advisers and those without, say they need more advice from advisers on how to grow their wealth – this is a need for consumers (31%) which is currently not adequately addressed.

"Dialogues of this nature are not only important for the financial services industry, but for the South African consumer at large. What consumers need to be aware of is that financial advisers and insurers operate within tightly legislated environments; and have a duty to treat customers fairly at all times," adds Jay Naidoo, Liberty's Divisional Director for Distribution Transformation.

"Guiding clients to achieving and attaining their financial goals and aspirations requires co-ordination and collaboration from both client and adviser. To this end Liberty is focussed on ensuring that our advisers are fully capable of providing the optimal level of service and support to the clients they engage with," concludes Naidoo.

Quick Polls

QUESTION

Millennials make up 30% of the South African job market; these are your clients and future clients. Do you engage with them?

ANSWER

No, not my target audience
Yes, the same as all my other clients
Yes, via social media
Some engagement but by far the most difficult generation to engage with
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