{"id":54106,"date":"2021-02-05T08:57:52","date_gmt":"2021-02-04T22:57:52","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=54106"},"modified":"2021-02-09T12:52:19","modified_gmt":"2021-02-09T02:52:19","slug":"five-steps-for-a-successful-advice-future","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2021\/02\/05\/five-steps-for-a-successful-advice-future\/","title":{"rendered":"Renaissance: Five Steps for a Successful Advice Future"},"content":{"rendered":"\n
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While the financial advice sector is expected to experience more change in the short-to-medium term, a new report says the industry is currently in a \u201cunique position\u201d to transform and rebuild itself as a reliable and integral aspect of the future of financial services in Australia…<\/h3>\n<\/div>\n<\/div>\n

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The Oliver Wyman<\/a> report, Future of Financial Advice: The Australian Renaissance<\/a>, says that while some observers have commented on the collapse of the industry, learnings from other markets and industries suggest that the current period represents \u201can opportunity for rebuilding a sector that better meets customer and regulatory outcomes and is economically sustainable\u201d.<\/p>\n

One of the report\u2019s authors, Oliver Wyman partner Angat Sandhu<\/strong>, told Riskinfo that financial advice organisations should reassess how they create more a sustainable sector for themselves and for their customers.<\/p>\n

This means a change in the customer experience, in customer management and greater use of customer data.<\/p>\n

\u201cFirstly, they must understand their customers better, secondly segment them better and thirdly understand their customers\u2019 needs over time in a more meaningful manner.\u201d<\/p>\n

Sandhu said it was important that advisers ask themselves to what extent they actually do understand customers\u2019 needs, not just when they engage with them – but to what extent do they understand their changing needs over time?<\/p>\n

\u201cIf you sample some customers and ask for feedback, will they be engaged, happy and understand the value you are providing?\u201d<\/p>\n

He adds that a practical challenge is that smaller advice firms may not have access to the data or the data infrastructure they need and should look at who they could partner with to help address this issue.<\/p>\n

Another challenge for the advice sector is to articulate the value it provides to clients.<\/p>\n

In looking at the evolution of the sector in the United Kingdom and the United States the report says the key takeaways for the Australian financial advice market include:<\/p>\n