Develop your advice model of the future

01 October 2014 Johann Maree, Australian Correspondent

The core of any financial adviser’s business model should be the client. In this first of a two articles series we will look at the strategies for future financial advice. To understand the advice model of the future advisers will need to understand the evolving needs of their clients in the next ten years.

Many industry experts have been speaking of the opportunities that exist with retiring boomers and there is an expectation that this will continue for the next decade. There is however, a groundswell of opinion and research that is indicating that the next generation is stepping up to stake their claim as the client of the future. The future of advice has become critical as a result of the rapid advancements in technology, communication and lifestyle preferences.

The expectations of these next generation clients are evolving in ways that will create exciting challenges for financial advisers. To gain lasting success, financial advisers will need to create strategies and implement long-term future plans that cater for the opportunities that will arise from clients and prospects in the next two decades.

With all the time and effort dedicated to helping clients plan for the future, it is also beneficial for the adviser to do the same for themself. In order to achieve long-term success, an adviser must have a service model with standards, processes, and systems in place, in addition to the commitment of providing a WOW service to clients.
Development question: So how is your business plan going? Do you have processes and systems in place to drive the client service model?

Cause for optimism

Crain Communications and Cambridge Research discovered that 54% of clients surveyed and 54% of do-it-yourself investors stated that five years from now they would need more direct, personalised and professional financial advice. Seventy percent of those researched did not have an adviser but will consider hiring one in the future. There is, without a doubt, cause for optimism in the financial advice industry. Particularly as we see the rise of the “Robo-Adviser” as a potential threat to the traditional advice model.

Robo-Advisers’ disruptive nature will require financial advisers to evolve their approach to providing advice to their clients. This will involve developing clearly defined, repeatable service processes, adopting technology solutions which speed up the time it takes to complete tasks and utilising specific messaging with prospects and clients that distinctly communicates the advantages of an advisory firm’s service model over that of a Robo-adviser’s model.

There is conclusive research backed evidence to show that whilst the type of advice and the delivery of services to clients has and will continue to change, the demand for financial advice and personal face to face intervention has the potential to increase significantly in the next five years.

Development question: Are you able to offer your clients “direct, personalised and professional advice?”

Personalised financial advice

Clients, and more particularly investors, need and desire personalised financial advice and support which translates their personal needs into a strategy. Retirement income planning is seen as a priority with brokerage and financial plan creation coming second and third respectively.

Clients want an expanded service model with access to financial planning, investment, retirement, tax and estate advice from a single business. As an adviser you have the opportunity to demonstrate your value by showing that you really understand your client. The reality is that you must be able to deliver highly specialised advice and a range of services, and if the experts are not in your business you will need to create a team of “outsourced” professionals to help you.

To be continued………

Look out for second part of this article in the November edition in which we look at aligning your business model with technological changes.

Quick Polls


In navigating the dynamic landscape of financial intermediaries in 2024, which strategy do you believe is most crucial for success?


Prioritising client needs
Embracing technological advancements
Staying abreast of regulatory developments
All of the above
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