A new mobile phone application (app) has been launched, designed to help consumers locate the most trustworthy financial advisers in their region.
The app is part of a new initiative called the Most Trusted Advisers Network, created by industry research firm, The Beddoes Institute. The aim of the register and Network is to identify, recognise and promote ‘best of breed’ advisers.
The Most Trusted Advisers Network was developed based on research conducted by Beddoes, which analysed thousands of client ratings from over 150 advisers’ businesses. Through this research, Beddoes generated an objective benchmark for exceptional client service and performance. Advisers who meet or exceed this benchmark are invited to join the Most Trusted Advisers Network.
Consumers can access the Most Trusted Advisers Network register via an app on their mobile devices, and view a list of carefully selected advisers who have been ranked as extremely trustworthy by their customers.
“The app allows consumers to, in effect, crowdsource an adviser they can trust,” said Beddoes Institute Director and Co-Founder, Dr Adam Tucker.
“It’s a little bit like being able to talk to thousands of neighbours over the back fence about how to find an adviser they can trust.”
Dr Tucker said Beddoes had decided to create the Network because of the high level of satisfaction it observed among clients of the top advisers.
“For the last three years, we’ve been working with a number of advisers as part of our Leading Practices Program. These advisers are definitely in the top 20% of the spectrum in terms of their performance, standards and outcomes. As a result of working with all of those advisers, we’ve got several thousand client experience ratings; ratings across the whole journey that a consumer takes, in terms of approaching advice, the early stages with an adviser, through to becoming a long-term client.
“In all of the sectors that we’ve worked on, we are seeing a standard of service in financial advice that we have not seen in other sectors,” Dr Tucker said.
To illustrate his point, Dr Tucker used the Net Promoter Score (NPS) metric. According to Dr Tucker, the NPS is a widely used measurement tool which has been linked to profitability and growth in a wide range of businesses. An NPS higher than zero is regarded as ‘good’, while an NPS of 50 is considered to be ‘excellent’.
…you’ve got advisers that are now working harder than any other profession that we’ve identified, to prove themselves to clients
“Optus has an NPS of around minus 8, Telstra around minus 13, while airlines collectively average around zero,” Dr Tucker explained. In contrast, advisers who participated in the Beddoes’ Leading Practices Program achieved an NPS of 25. The top 20% of those practices (ie: the top 4% of advisers in the country) had an even higher score of 50.
“So, in the current environment, on the one hand you have the negative perceptions associated with financial advisers becoming more entrenched. And on the other hand you’ve got advisers that are now working harder than any other profession that we’ve identified, to prove themselves to clients.
“We are seeing scores in the advice industry that are higher than we have ever seen anywhere, so we wanted to step out and showcase this to the wider public, which is why we created the Most Trusted Advisers Network.”
In order to become part of the Network, practitioners must submit to an assessment of their business which includes a survey of the advisers’ existing client base. Only advisers who receive an NPS of 50 or more will be invited to join the Most Trusted Advisers network. Advisers will then be assessed every 12-18 months and must re-qualify in order to continue to belong to the Network; they cannot pay to belong.
“Our message to advisers who are members, and those who wish to be, is: your clients trust you, now, via the Most Trusted Advisers Network and app, others can too.”
Click here to find out more or to download the app.
