Intentionomics founder David Penglase, who describes himself as a “financial advice advocate” and is completing academic research in applied psychology, said the latest research on applied positive psychology from the University of California shows there is a growing gap between the value of financial advice and the value of trusted professional advice.
Trusted professional advice can relate to lifestyle and work-life balance issues as well as personal coaching and mentoring, he said.
Often undervalued by financial advisers, Mr Penglase believes that in the client’s mind, this non-financial advice is actually perceived as the more valuable part of the overall offering.
“While the financial planning industry continues to operate in the restrictive paradigm that [advisers’] value is in their financial advice, the potential of the industry to grow and create more meaningful value through extending their brand alignment beyond pre- and post-retirees, will continue to be restricted,” he said.
Mr Penglase believes offering more than just financial advice enables advisers to broaden their client base to include Gen Y and Gen X.
These demographics, he said, have traditionally been outside the ‘preferred client model’ because they generally have a lack of substantial savings or investments to manage and don’t view themselves as potential clients of financial advisers due to branding and value mis-alignment.
“The ability to attract and retain profitable Gen Y and Gen X clients is where potential and significant growth is possible, and will create longer relationships with clients, which means more revenue over a sustained period of time.”
This will also mean more value for clients for a longer period of time, Mr Penglase said – and not just from financial advice.
Good ideas….might just change my title to “consultant”, set up separate business…sounds like a plan. Thanks. Tell dealer group to get stuffed and keep their grubby hands off.
Gerry, become a life coach, social worker or consultant of some sort. None require that useless entity called a dealer group & none require that pointless box ticking SOA/compliance regime. Sure you can’t give financial product advice but who would want to in this current compliance circus that exist where compliance officers with no real world experience dictate your life & ruin your business future daily by their actions with not a commercial bone in their body.
Gerry – it is possible to offer these services – even under one of the most restrictive of AFSLs. We set up a completely separate company to provide business consulting – you just need to wear two hats – separate stationery, business cards, etc! No advice captured by the Corps Act given, charged by your own company, not through the licensee (so no dealer cut taken!
Gerry- become an Accountant. Discuss with a client whatever you like and then just add your time to their bill for taking instructions to complete their tax return 🙂
I’m all for it….but given the strict regulations imposed on advisers when giving advice, would we need to provide an SOA with this ongoing coaching and support and would they like some fries and a coke with that?
As far as I can tell, the advice industry is not really in a position to help this type of future client…sadly. Although, an adviser on another forum suggested I set up a separate business for this type of work and because no product involved there would be no SOA. My dealer group (until I find another) can’t cope with a simple direct debit system of charging so I’m not sure how I will get paid.
Anyone like to offer a solution here?
David is right on the money here & I believe these concepts go right to the heart of helping the broader population take greater control of their lives. Brian Tracy in his paper on the “Psychology of Achievement” cites the most important issues for clients to feel in “control” include: financial freedom, self actualistion, health & fitness, loving relationships & peace of mind. There aren’t necessarily “product outcomes” involved here yet undoubtedly “Trusted Advisers”(refer AFA / Beddoes / Zurich research) with broad ranging CVP’s of this ilk make up the most successful & valued members of our advice industry. Great stuff, thanks.