Financial advisers who specialise in a particular niche of the market may need to redesign their business model in order to generate ongoing revenue, according to consultant Jim Stackpool.
In an online presentation, Certainty Advice Group managing director Jim Stackpool said specialist advisers will struggle to continue to provide value to their clients after removing the complexity from their lives that originally drove them to seek advice.
“It’s like a knee surgeon getting a knee done, once you’ve got the knee done the client’s needs and complexity drop,” he said.
“Yes, you can build a business on this area, the expert adviser area, but what is the ongoing fee going to be?”
Mr Stackpoool said advisers who offer a “narrow proposition” will be particularly challenged by the growth and evolution in the fintech sector.
“If [clients are] on a narrow proposition, and see you providing a narrow proposition, you turn into a bit of a knee surgeon,” he said.
“You’re very good at the time, and I come to see you and I love your work and you’re an identity in the town, but why am I paying you once the complexity has been taken out of my life? I think fintech advances challenge us considerably in that area, from a commercial perspective.”
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