Financial services of the future: catering for the global citizen

As many of us become ever more global citizens, should our financial services (insurance, investments, advice) not also become global? Imagine working anywhere in the world without having to worry about changing your short-term insurance cover, investments or life policies. And most importantly, having the same financial adviser and mentor to guide and assist you?

That is how Group CEO of the Professional Provident Society (PPS), Izak Smit, sees financial services, including insurance, developing in the future for professionals. “With PPS focusing exclusively on providing a comprehensive suite of financial products to graduate professionals, we can already see the trend where many of our members effortlessly move their working location.

“As much as the COVID-19 pandemic has had major negative effects on the world, it has also brought about many positive trends – such as the rapid transformation to using digital platforms in the working environment,” says Smit.

“We always knew that digitalisation would allow more of us to do our jobs in a virtual, on-line world. Many professionals ship bits, not atoms, when they perform their jobs. And they can do that from anywhere in the world where there is good connectivity. You can wake up in Johannesburg, ‘go to the office’ in London and attend a meeting late afternoon in New York. But it can also be in a different order. Wake up in London, ‘go to the office’ in Johannesburg, and then attend the meeting in the Big Apple,” predicts Smit.

“The COVID-19 pandemic forced us to make these transitions at a much faster pace. We already see many of our members working like this and we need to ensure that our products and services keep up with their increasingly global lifestyles,” he says. “We need to give them the peace of mind that, regardless of where they operate, their financial adviser is there for them and their finances are looked after.”

Smit points out that what makes PPS attractive to graduate professionals, wherever they find themselves, is its unique operating model which is based on the ethos of mutuality. “When we were founded 80 years ago by eight dentists, mutual financial services companies were more common. But even among those that remain, the bespoke way that we apply our model is unique.

“It is a differentiator that we can export across the globe. Our unique approach – where we allocate a specific share of our operating profit and returns on investments to each member who qualifies based on the products they hold – is something special and has our members’ financial interests at heart. We do not have shareholders. It is our members who share in our success, and that is what attracts them to us,” explains Smit.

“As we celebrate our 80-year anniversary, we asked ourselves what PPS would look like in 20 years when we celebrate our centenary. Three themes stood out: Even more digitalisation; a group that is well known for the full spectrum of financial services that is offered to professionals; and a business that provides global solutions to professionals.

“Look, building global solutions that can be used by professionals wherever they are located, is going to be no easy feat,” admits Smit. “Financial services is a heavily regulated industry, for good reason, as our businesses are built on long-term promises and trust. It will be a challenge to negotiate around these, but I am convinced that in some way or manner, it can be done.

“Part of the strategy could be to plant more PPS flags in some locations. Places that we are especially interested in are those areas where we know there are many South African professionals familiar with PPS. An example is PPS Mutual in Australia where we now have 5 000 members after writing business in that country for five years. However, this may be only one approach.

“Another is to create solutions that can be accessed from anywhere. Changes in how professionals operate and live their lives prompt a business like ours to look at how one can serve the globe. We already see this happening in other industries. I predict it will also become true for providers of financial services like us,” explains Smit.

“By the time we celebrate our centenary in 2041, I hope to see professionals from around the globe, based in many different jurisdictions, celebrating the milestone and sharing in our success,” he concludes.