Smaller financial planning practices can no longer remain small if they want to excel and prosper in the new era of advice, according to the head of a boutique firm.
It is imperative that financial planning businesses prioritise growth, whether that be in terms of profit, expansion or market share, if they are serious about lasting into the future, Cardena Private Wealth managing director Ray Djani said in a blog.
“It may sound harsh but the reality is if advice practices aren’t growing they’re dying,” Mr Djani said.
“However, the underlying need for growth is not an objective driven by ego but required to fund and resource business capacity in order to remain relevant to the changing needs of clients.
“It is also reassuring and demonstrates the viability of the business to clients.”
Speaking about his own experience with trying to grow the Fortum-aligned firm, Mr Djani said he has focused the most on improving the client experience.
He said achieving this objective has been guided by connecting with its clients at a variety of touch points, including biannual surveys to obtain in-depth insights and deeper understanding of their evolving needs and aspirational drivers.
Earlier this year, Cardena conducted a client journey workshop to map out the client experience and identify ‘friction points’ for clients.
“Often the solutions to these ‘friction points’ in the client experience can be found outside financial services as new players disrupt the old ways and conventions of the past,” Mr Djani said.
“Online streaming services like Netflix and Spotify that have revolutionised access to entertainment such as movies and music are excellent examples of new ways of doing business by removing ‘friction points’ for consumers.
“We need to learn these lessons – especially those that relate to advances in technology and apply them in advice businesses. Technology is the next big wave of innovation we are embedding within Cardena to free up more time to engage more deeply and effectively with our clients.”
Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.
You can contact him on [email protected].
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