Advisers with investments as their value should be worried
Financial advice firms that do not focus on goals or values-based advice will struggle over the next three to five years, according to an adviser.
Speaking on a Lumiant webinar, Enlightened Financial Solutions chief executive, James Wortley said if an adviser’s value proposition was based on strategy and investment they should be worried about their business.
“If you're not outperforming these indices or benchmarks, you're in trouble so that's where value advice comes in. If you're not doing goals-based advice and values advice your business is going to struggle over the next three to five years,” he said.
“If strategy is your number one client value proposition, then geez you are going to have to show that really well with your clients to be able to do that. But when you're talking about value and above the line – what's really important to clients, understanding what their values are, what's really important to them in life and how we can help them – that's the game changer.”
Wortley noted that the number one thing the advice industry had not coped well with was client communication.
A central communication tool that clients could go back and check was needed as emails, phone calls, and text messages could get lost.
“From a business point of view, the number one thing we look at is ‘what's important to the business?’ But more importantly, what is the client getting from a value perspective?” he said.
“I think that's what a lot of advisers miss is, they go 'look let's be efficient, this is what we want to be able to do'. But always look back on what the client is, what's their experience that they are getting? And that that is that is quite a big call out I think for industry to move to profession.”
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