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<\/a>\u2018At the very heart of the demand for financial advice is an underlying need for all of us to be comfortable with our financial situation \u2013 irrespective of the generation we belong to,\u2019 Deloitte said in its report.<\/p>\n
\u2018In an increasingly complex world where we are relying on our personal finances to achieve life goals, overloaded with information as to how best manage our money and wary of financial crises and poor decisions, being able to satisfy this need is more difficult and uncertain. This can only lead to an increase in the demand for financial advice.\u2019<\/p>\n
To meet this demand, Deloitte has identified a framework for advice businesses that it says has the potential to create a resilient and successful advice industry. The framework begins with three trends that can be leveraged to deliver \u2018the right advice\u2019; that is services that are aligned to the needs of the customer\u2026<\/p>\n
1. Adviser match-making<\/strong><\/p>\n As technology advances, Deloitte argues that the physical location of an adviser will be less important to a customer than having the right \u2018business chemistry\u2019. Organisations that will succeed in the future world of advice will adopt innovative ways to \u2018match-make\u2019 advisers and customers based on individual characteristics and preferences.<\/p>\n In order to identify consumer preferences, advice organisations will need to become more sophisticated in their use of data, such as customer satisfaction surveys and profiling tools.<\/p>\n Match-making will also become increasingly important at a licensee-adviser level. Dealer groups will need to more clearly define their offer to consumers, and find ways to attract advisers that can deliver on that proposition.<\/p>\n However, given the ease at which advisers can move between employer\/licensee competitors, dealer groups will need to establish programs to maximise the likelihood of retaining talent. This may include providing more avenues for advisers to collaborate with their peers within the licensee network, and\/or reward systems that recognise advisers who contribute to building the network.<\/p>\n 2. Customer-led models<\/strong><\/p>\n Deloitte says it is already beginning to see a shift away from product-led operating models to customer-led ones. This strategy requires an organisation to continually \u2018rediscover\u2019 its customers.<\/p>\n \u2018Customer-centric operating models require a deep understanding of target customers,\u2019 Deloitte said in its report. \u2018As customer needs continuously change under the influence of circumstantial factors, the mechanisms by which successful advice organisations continually learn about their customers must be dexterous and responsive too.\u2019<\/p>\n For an organisation to thrive in this area, quality, granular-level customer data is required, as well as providing tools for customers to have their say on how they want to experience advice services. With access to this data, Deloitte said advisers will be able to better track client progress against goals and tailor their advice and services.<\/p>\n Finally, businesses should consider how they can increase financial literacy among customers and the community, by introducing technology and processes that enable customers to be more involved and engaged with their finances.<\/p>\n 3. A new meaning of holistic advice<\/strong><\/p>\n The final lever to assist advice businesses to deliver \u2018the right advice\u2019 is acknowledging that the customer of tomorrow will have different requirements and expectations. Deloitte believes that in the future \u2018holistic advice\u2019 will expand beyond the traditional retirement planning, insurance and investment services.<\/span><\/p>\n \u2018We have already seen partnerships and acquisitions \u2013 particularly in the independent dealer group space \u2013 that bring the financial adviser working more closely together with accountants, mortgage brokers, estate planners and legal practices. We see an increase in operating models that place the financial adviser at the hub of all these relationships and consequently expanding services to facilitate a new breed of advice,\u2019 the report said.<\/p>\n Deloitte proposed that strategic partnering my prove an easier path for advice businesses to deliver holistic services, rather than bringing all the elements \u2018in-house\u2019. The researcher also recommended businesses consider recruiting financial advisers with experience and education in complementary areas, such as wellness or psychology.<\/p>\n In next week\u2019s riskinfo Weekly News we will examine Deloitte\u2019s recommendations for businesses looking to deliver advice at \u2018the right time\u2019.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" Despite the current negative perceptions and regulatory burden, the financial advice sector will grow and thrive into the future, so long as providers can deliver on three core factors, a new report has hypothesised.<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6,3,5],"tags":[],"class_list":["post-29885","post","type-post","status-publish","format-standard","category-dealer-groups","category-general","category-services"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/29885","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=29885"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/29885\/revisions"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=29885"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=29885"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=29885"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Customer-centric operating models require a deep understanding of target customers<\/h6>\n