What can we do as an industry to show the value of professional advice and how in these changeable times it can really benefit consumers, asks Julia Peake, Technical Manager, Nucleus.
With the political party conference season and the upcoming Budget at the end of November, the rumour mill about what changes are coming and how they’ll affect clients, has been turning in earnest.
We’ve already seen the Government announce policy and then U-turn on some of these, leading to uncertainty, confusion and mistrust. While we understand that we need to change and evolve as the world around us does, the “flip-flopping” does not help our clients who are trying to prepare and plan for their and their family’s future.
Now more than ever, clients need expert advice in financial, taxation and legal matters to ensure they can make educated decisions suitable for their circumstances.
With the rise of “finfluencers” and AI, clients are looking for quick answers at their fingertips, this is especially true for the younger generation who may not be engaging with traditional financial advice.
We recently conducted the Voice of the Adviser survey with 88% of respondents agreeing that the way people consume financial advice is changing.[1] 60% of respondents said they’d like to see more regulated advisers sharing education and insights online to help promote the profession[2].
Unfortunately as we know, “finfluencers” and AI cannot be relied upon when it comes to the serious matters of legal, tax and financial advice. 59% of advisers told us they’ve seen clients negatively affected after following poor or unregulated financial tips online.[3]
Examination of the client base revealed a clear majority of advisers (86%) believe the profession needs to do more to appeal to younger clients, yet only 44% say they’re currently working with this demographic, with the majority of their clients over age 50[4].
The perceived cost of advice, limited investable assets, and a general preference among younger clients for DIY or robo-advice seem to be the reasons why younger people are not reach out to financial advisers. Others mentioned apathy or a lack of understanding about the value of financial advice.
So what can we do as an industry to show the value of advice and educate the masses on why professional advice in these changeable times can really benefit them and their family as they move through different life stages?
1. Lobby on making financial education part of the education system at a time when young people are preparing to get into the world of work, apprenticeships and university education, where they may be leaving home and living away for the first time. Giving those young people starting their GCSEs and above the information about how our tax system works, practicalities of dealing with money and budgeting, the benefits of saving for their future via pensions and ISAs etc. can only benefit them as they develop and experience the adult world and their future responsibilities.
2. Engaging with local schools and colleges to see if they are running career days and ask to be invited to talk about the benefits of careers in the financial services industry and the variety of roles available to all. There is still a significant gender gap especially when it comes to female financial/wealth planners. Get different people from the firm to speak, not just directors. Those just starting their careers and those in different roles can add real insight into what happens when you begin and want to progress your career in this market. For those in this position, volunteer to be a speaker and mentor.
3. Offer Summer internships so graduates can gain valuable work experience, in the financial industry. Get them to sit with different departments in the firm so they can get a wide breadth of knowledge that can help steer their future career goals. This may also help attract new recruits into the industry and assist with succession planning for the business.
4. Work with your professional connections, in the legal and taxation arena to hold events and webinars to ensure clients have a 360 view of their current circumstances. Again invite a wide range of people to speak/ present.
5. If out on adviser meetings or when speaking to clients, describe how other family members might benefit from your services, as they a likely to be beneficiaries of the work being undertaken.
6. Being flexible. Some people’s schedules mean they sometimes don’t have the time for face-to-face meetings. So making use of technology, AI, apps and online services for some might be more appropriate and could increase engagement, particularly from younger clients.
7. Having a social media presence. With the rise of social media platforms as a way of connecting with potential clients there is untapped opportunities to engage people in their finances.
We know about the benefits of working with professional advisers across the spectrum both for ourselves and our clients, but we need to share this message with the masses. Sir Fracis Bacon said, “knowledge is power” and having the correct knowledge and making sure people can make informed decisions in such a changeable market can only be a good thing.
How can you help? Speak to your friends, families, peers, and connections about how working with professionals can help them and their future plans.
[1] Voice of the Adviser Survey | Nucleus Financial
[2] Voice of the Adviser Survey | Nucleus Financial
[3] Voice of the Adviser Survey | Nucleus Financial
[4] Voice of the Adviser Survey | Nucleus Financial
Main image: docusign-7RWBSYA9Rro-unsplash
