Concerns going into the future, as an intermediary
Ryan McCaughey, CFP® and FPI 2021 Financial Planner of The Year said the past two and a half years have been a challenging for us all, and “for many of us, it has placed significant stress on our practices”.
“Here we are, coming up to 2023, when most of us doubted we’d get out of 2020 alive,” added Natasja Hart, CFP® and Wealth Manager at GCI.
Concerns going into 2023 and beyond
Hart emphasised that change is always difficult, and forced and unexpected change can leave us reeling. She believes that more and more clients are looking to financial advisers for answers, whilst also questioning the advice received.
“My concerns going forward into the future, as a financial adviser, is how to stay relevant, how to continue to nurture the trusted relationships formed with my clients, how to remain efficient and proactive and how to use technology in a way that enhances my client’s experience, while keeping my independence,” she said.
McCaughey added that it is important for us to focus on what we can control, and not on those items that are out of our hands, which often distract us from the important aspects.
He mentioned that one of his major concerns is managing client expectations and portfolios through the current inflationary cycle, whilst ensuring that their long-term investment plans remain intact.
How do we keep up with all the changes?
“I believe that the financial services industry, as a whole, is changing, and we need to embrace this change. Clients are becoming far more knowledgeable and price sensitive. The sheer number of products available in the market is overwhelming and compliance is becoming far more stringent. I see this as a natural evolution of an industry that should aim to have the client’s best interests at the centre. But how do you, as financial adviser, keep up? Questioned Hart.
“You have to utilise the technological tools at your disposal that allow you to execute instructions efficiently, record your advice and keep you proactive. Many of us have struggled with the move from a paper-based working environment to an electronic one but, in many ways, this decreases risk. I think the pandemic has accelerated the digital transformation and, for some of us that thought we couldn’t change, this forced change is an opportunity to review and enhance the way we interact with our clients,” she emphasised.
McCaughey said, “towards the end of 2020, we scaled up our business through technology, which allowed us to focus on the true components of financial advice and freeing us up to connect with our clients.”
Hart added that we should also take pride in the fact that we are continuously learning, and “I believe that there is a huge opportunity for mentorship within in the industry. This aids in the distribution of knowledge and ensures that our clients are exposed to a wealth of experience.”
The successful intermediary of tomorrow
“Building a professional financial planning and advisory business should always start with the client in mind - a clear focus on ensuring exceptional outcomes for clients over the long-term and delivering an all-inclusive client experience. The key aspect is to form a mutually beneficial relationship with your client, ultimately increasing their chances of getting good advice and a sound financial plan, well on their way to achieving their financial goals,” said McCaughey.
Hart believes that the financial adviser of the future is truly a partner to a client’s financial life journey. “Financial advisers could drive the relationship, supported by platforms focused on product design and use tools and technology to better interact with clients, while complying with the requirements from the regulator.”
Words of wisdom to fellow intermediaries
“To my colleagues and peers, lets continue to strive for professionalism, continue to question the status quo and never be afraid of an evolving environment. We should take a moment to reflect on the difference we have made, and continue to make, in the lives of many clients,” concluded Hart.
In his concluding remarks, McCaughey said intermediaries should scale their businesses through technology, as it will allow them to focus on the important aspects of financial planning, such as providing clients with a comprehensive value proposition, providing clients with a regular and stringent review process, monitoring clients’ investment exposures, ensuring comprehensive product provider due diligence and, lastly, practice and staff management.
“The end result will enhance your overall offering. It will allow you, the intermediary, to spend more time with your clients, forming those close relationships. You want to create an environment where your client becomes part of ‘your family’ from generation to generation, incorporating their personal, business and trust affairs where applicable,” he said.
Writer’s Thoughts:
We are living in unprecedented times which call for extraordinary measures and, with the livelihood of so many South African businesses and individuals under pressure, now is the time that clients need their intermediaries’ advice, expertise and support the most. What are your concerns going into the future, as an intermediary? Please comment below, interact with us on Twitter at @fanews_online or email me your thoughts – myra@fanews.co.za
