Advisers need to consider the language they use when explaining financial decisions to clients and focus on the psychology behind the advice process rather than its implementation, IOOF Alliances has said.
Around 80 per cent of Australians are unadvised due to a range of factors, IOOF Alliances said in an adviser-facing article, but despite this some practices are continuing to capture “more clients than they can handle”.
According to IOOF Alliances, successful advisers “deal specifically with the psychology of the process, not with the process of implementation” of advice, and speak to clients in a way that focuses on their needs rather than on compliance matters.
“Phrasing the explanation of the choices your clients and prospects need to make is vitally important,” the company said.
“Framing the choices into stories of the journey others have taken can be incredibly powerful.”
IOOF Alliances said that in modifying the language they use, successful advisers are “tapping into human behavior”, adding that easy and accessible language, multiple methods by which potential clients can access you, modular processes and educational snippets are all things offered by practices with strong engagement.
“Most of us are busy, our lives are complicated and we can’t spend time thinking and analysing everything; we use rules of thumb,” the company said.
“Because we do that, your process and engagement needs to become a rule of thumb against which people can make quick automatic decisions.”
A Greens senator who was a key agitator for the royal commission has defended his reasoning in pushing for the inquiry, but conceded that it’s not c...
APRA’s sweeping changes to income protection policies are set to force more claimants back to work sooner, as the life insurance industry faces more...
The latest enforcement update from ASIC has noted that court cases brought by the regulator in the six months to December last year under its 'why not...