Well nobody could accuse the financial advice industry of being boring. Constant change has been the order of the day for some years now, and while the exodus of advisers leaving the industry has slowed, according to Adviser Ratings another 431 advisers left in the last quarter.
So a shrinking industry and raised demand due to COVID does one thing for those of you who are left – puts you squarely in the hot seat to grow your business. More than ever, people are realising they need financial advice. While they may not know how much to pay for it, they are certainly asking more questions than ever before.
It has always been difficult to communicate exactly what an adviser does. Part coach, part psychologist, part certainty giver as well as someone who knows the rules, regulations, and how to get ahead. I would say now is the time to demonstrate your empathy skills, and start talking about what everyone is feeling when it comes to money – fear and uncertainty.
It is human nature to move away from fear, and toward security or pleasure. And it has never been more critical as we start to rebuild our economy post COVID to sew the seeds of security for people. For an adviser, the lowest hanging fruit is existing clients. How are they feeling? What questions are they asking? Has their situation changed dramatically since COVID?
You already have the litmus test happening, and if you believe you have the capacity, now is the time to think of using that understanding to reach others. And, if the flow of advisers keeps happening, is there a way you could increase your capacity by growing your own team, or partnering with advisers who have complementary skill sets?
Or, can you reach out to the super funds that your clients use the most, and grow a relationship there where you can pass on client leads for those that are not suitable to your business, so you have a way to still help. And of course, look into robo tools that help you serve more (I know NMPEs new owner, Iress, is doing a lot of work in this space).
For the adviser who has enough clients and does not want to grow, this is the time to deepen your relationships with your existing clients and understand them even more. Their fears, their changing goals and what’s happening with the next generation. This includes the issue of money mindfulness and creating a feeling of security, calm and a level head looking into the future. For who knows where we go in 2021 and beyond with COVID.
To help with this, this year I am going to be writing weekly, with insights and tips that you can give your clients. I will also be creating courses on issues like money mindfulness, relationships and even working with your kids on money. It is a new way for NMPE to serve our loyal community, by providing content that you can share, and help maintain a digital dialogue with your clients either through your newsletters, or social channels.
I will also be writing monthly for our adviser community – and will be out there in the public promoting and supporting the good work you do.
Here’s to 2021 being the year of the adviser – you certainly deserve it.
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