Following on from their three-day Leaders Forum Business Summit, the AFA are pushing for advisers to place customers ahead by thinking about the adaptability of their practices.
AFA chief executive Brad Fox said that the summit, which included 15 delegates from the country’s leading advice practices, discussed strategies for delivery of advice and successful client engagement, without running the risk of ignoring the critical impact that the operating environment can have on the overall success of advice practices.
“Delegates considered the key trends and market forces through the lenses of political, market, economic, digital and consumer shifts in the advice landscape. These are important challenges facing service industries around the world, but, arguably, none more so than financial advice,” he said.
“We understand from our members that many feel under pressure from the change in trends in the financial advice landscape. Advisers need to develop a deep understanding of these macro trends and use that as the basis to refine the strategy, culture and architecture of their advice practices.”
Think tanks from the summit identified the growing number of new entrants to financial advice who do not charge commission on life insurance or asset based fees on superannuation and investment advice.
“As disruptors to the traditional advice models they may succeed or fail; either way it means existing advice practices need to consider what is the business formula for success in a changing market place and be prepared to adapt,” he said.
“Political, economic, societal, digital and legislative paradigms are shifting — and adapting business strategy is essential.”
Delegates from the summit will reconvene in October at the AFA National Adviser Conference in Canberra, where improved businesses strategies for a customer focused advice paradigm will be on the cards.
“It takes a start-up mentality where you need to get started well before you have all the pieces to the puzzle, and then stay flexible and adapt and learn as you go,” Fox said.
“It’s about being nimble and agile — that’s what delegates determined to be the characteristics of the adaptive practice.”
