Cherry pick your way to success

The future of financial planning holds a lot of positive signs for the financial planner. There is a growing middle class in the country which is increasingly becoming financially literate and wants to look after their own families and additional dependents.

Financial planners may have to take a cherry picking approach when they work with a smaller client base that optimises their capital flow. Clients can now enjoy an enhanced level of focused, dedicated advice from advisers who have moved on from trying to please a large client base to pleasing a focused client base.

Kate Holmes, CFP, Founder of Belmore Financial, is an outspoken proponent of cherry picking clients and processes to maximise business efficiency. FAnews spoke with Kate to gain more insight into her approach.

Question: You have a unique approach of turning clients into fans. How do you achieve this?

Answer: The most important aspect is to only work with clients that you are a fan of. If you have clients that don't value you, or are a pain to work with, it's time to fire them.

Ideally, clients will become fans before they begin working with you. This is where your website and social media presence comes in. Being authentic is a key aspect. Maybe you have strong opinions, a big personality, a fun way of explaining things, or a different way of working together. You could be a musician on the side that specializes in working with other musicians; or a female road cyclist whose niche is other female road cyclists. Whatever it is that you are passionate about, where you would like to attract like-minded clients, embrace that and put it out there for prospects to find.

Financial planning is a relationship business and prospects need to decide who they would like to build a relationship with. If they have a choice between five planners with the same credentials, qualifications, level of experience, and service offering, but one of those planners shares their hobbies and personality traits, who do you think they will choose? They will feel a connection to the planner they have commonalities with before the planner ever knows they exist.

Question: It is clear that your philosophy hinges on the fact that financial planners need to love what they do and have a deep passion for it. What are some of the other essential business truths that you stand by?

Answer: I believe as financial planners one of our most important jobs is helping clients determine what they want their life to look like, then create a plan to go after it. You can give me all the data about a client, but if I do not know what makes them the happiest and what their deepest dreams and desires are, I do not feel I can create an effective financial plan for them.

In order to do this properly, though, we need to first have these conversations with ourselves. Are we living our own best life? If not, what changes need to happen? If so, we are not only in the right position to help our clients, but we are setting a great example for our clients about what's possible in life.

From a business perspective, I encourage planners to review their processes at least annually with the following things in mind: what creates the most work, what has the most cost, and what can we leave behind? We can get stuck in patterns of doing things just because it is the way they have always been done, but it is good to challenge that thinking and always seek efficiencies, for us and for our clients.

Question: You base your model largely around operating from a mobile office. Can you please discuss the role that technology currently plays in the financial services industry?

Answer: Barry Ritholtz recently said, "The future is already here. If you work in financial services, the time to get ready for this sea of change was yesterday."

Technology's role in financial services has been increasing for decades and it's a huge win for consumers and professionals in the advice business. As more and more aspects of financial services are commoditized, consumers benefit by lower costs and greater transparency.

For financial planners focusing on advice and not on products, technology and commoditization allows us to spend more time working with our clients, and helping more clients.

Question: You serve a client base that is spread across the globe. How can financial planners use technology to harness this?

Answer: Think about all the expats living abroad that need help with their South African based assets. They are not going to find you down the road; they are going to find you online and need to work with you virtually. Also, when considering working with clients abroad, you must ensure you understand all applicable compliance, rules and regulations.

Question: How have clients responded to your unique approach of a mobile office and that you are embracing technology on a whole different level?

Answer: For clients of all ages, the ability to meet virtually and collaborate together online is seen as a great value add. Clients have busy lives and are often not able to come to an office or meet during normal working hours. Since I fit my work around my life, I am often happy to meet with clients in the evening after spending the afternoon on a gorgeous bike ride.

Question: How will this progress in the future; not only in your business model, but in business models of financial planners around the world?

Answer: Financial planning software still has a long way to go. While we have a lot of options in the U.S., none of them are perfect; we need software with a global approach. The world is getting smaller and the number of expats and dual citizens is continually rising. We need technology – and regulatory – solutions to help us meet this demand.

We are moving further and further into fee-for-advice, which I strongly advocate for. Technology is something to be embraced, not be fearful of. Consumers will always need human financial planners, and those providing true advice and attracting clients that are raving fans will be the most successful going forward.