Survival tactics for the financial planner
At the opening of the recent FPI Convention, hosted by the Financial Planning Institute of Southern Africa, CEO Godfrey Nti did not hold any punches when he described the economic times we find ourselves in as a time of frustration, confusion and a time when clients are looking for guidance.
None of this is new. We have been living in these times for a number of months. Can we even realistically say that we fully recovered from the 2008 Global Financial Crisis? While pointing out the seriousness of the times we face, Nti made mention of the fact that this is a time where strong leadership is needed within the industry.
A quintessential time
Leading your business through extraordinary circumstances was one of the major topics up for discussion on the first day of the convention. The panel that discussed the topic with Nti included Andrew Bradly (CEO Old Mutual Wealth), Nicolaas Kruger (CEO MMI Holdings), and Thabo Dloti (CEO Liberty Life).
“We are living in a quintessential time for the industry, and we are looking the wrong way,” said Bradley, “we are seeing challenges such as technology, robo-advisers and Millennials as challenges that may significantly damage our businesses. Why can’t we see these challenges as opportunities to access new customers and new playing fields? We need to rethink the realities that define us.”
He punctuated this thought by referring to the pertinent reality of longevity. Clients are living longer and are making the wrong decisions most of the time. Clients need financial planners who will keep their investments on track as well as a peace of mind that their portfolios will be rebalanced as their life situations change.
Dloti agreed with these sentiments saying that planners need to go back to basics within their businesses. If they can do basics effectively, then they won’t find themselves up trouble creek without a paddle.
Situational leadership is key
“Clients are not expecting financial planners to be creative and to pull a rabbit out of the hat when it comes to managing their needs. But clients are expecting excellence when it comes to situational leadership. How are financial planners adapting to the challenges they face? Further, most of the time clients value visibility during difficult times over generous promises of high returns which may or may not materialise. This can be an effective blueprint to success,” said Kruger.
Dloti added that when one strips the role of the financial leadership down to the core, it is nothing more than making a vision clear when external noise may influence bad decisions. “It is no use having a long-term plan for a client which needs to be abandoned because it is not adaptable. Clients want responsiveness; this is when communication becomes important,” said Dloti.
Survival of the fittest
The panellists were more than gracious with their pearls of wisdom when it comes to client needs; but how do financial planners take this insight and practically implement it into their business?
Kruger feels that financial planners need to sit down and identify what are the megatrends that are influencing the industry. By identifying these trends, they won’t be blindsided by other trends that may creep up on them.
Dloti says that a non-negotiable is embracing technology. “It is human nature to look for a second opinion when it comes to important decisions; because the internet is accessible and the information immediate, clients will naturally turn towards it as a source of information. Do not see it as a threat. Financial planners need to constantly invest in their own development in order to remain relevant; constantly reinvent yourself in a world that is continuously changing,” said Dloti.
The leadership landscape
One of the global challenges facing the financial services industry is the fact that the world is growing without creating enough jobs. This results in major youth unemployment which is never a good thing as the youth are the clients of the future.
Leadership is needed during tough times, but we also need to create and cultivate future leaders so that when an economic environment such as this one comes up again, there are planners who can provide solutions.
Leaders of today are challenged differently and therefore need to respond differently. We need to entrench this in our young leaders and then find a way to retain this talent in South Africa. What will the financial services industry look like if there are no talented advisers in the country to attend to the public’s financial needs?
Editor’s Thoughts:
Financial planners need to ask one simple question: what challenges do my clients face today that I need to keep at the top of my mind to be relevant tomorrow. If everyone in the industry can ask and answer that question on a daily basis, relevance won’t be a problem. Please comment below, interact with us on Twitter at @fanews_online or email me your thoughts jonathan@fanews.co.za.
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