The value of advice
It’s important to us as a business that when we work with our clients we demonstrate ‘good value’ and I’ve written on this blog before about how we are able to add value to our clients. When we work with our clients, Our priority is to help build and protect their wealth throughout our clients relationship with us and it’s important ensure that we never forget that.
However with the worrying issues occurring within the banking environment over the past few years (and with the Barclays and RBS group issues over the course of the last month of so) public confidence in financial services providers is at an all time low.
I know that as independent financial planners we work hard to ensure that we help our clients financial health. However occasionally as a profession we do seem to get ‘tarred with the same brush’ and lumped in with bankers and other financial services providers who seem to act without integrity.
It was therefore nice to see some recent validation from Unbiased.co.uk highlighting the value of good quality professional independent financial advice. The report in question can be found here.
The research in question raised a number of interesting points. Firstly, based on the research, only 18% of UK consumers has sought advice from an IFA. Whilst there are other sources of financial advice in the UK, it seems concerning that only a small proportion of the UK population receive impartial independent advice, as opposed to receiving advice from their bank or a company which isn’t independent, or alternatively no advice at all.
Now you may argue that this isn’t a concern. Where’s the evidence that an IFA can add genuine value to a clients financial health? Luckily the Unbiased survey goes on to show that working with an independent financial adviser can add genuine value to an individuals financial health.
The survey states that more individuals who work with an IFA’s are more likely to protect their families and income in the event of unforeseen circumstances, invest for their long term financial futures and save for their retirement. Therefore it’s clear that the professionals these individuals are working with are ensuring that their clients take responsibility for their financial futures.
The report also provides an example of how, based on their survey results, an ‘advised’ IFA client will be better off in retirement than one which is not by around £232 per month. This to me is a clear indication that as professionals we play an integral part into helping our clients ensure that they are wealthier in the future.
As ever I’m always interested in your thoughts and opinions….so, what do you think?
Bill Williams
July 25, 2012Chris, good blog, however, the message doesn’t appear to be getting through to the target audience; the Great British Public.
I asked everyone in the pub on Saturday after the football, everyone at the committee meeting I chair on Thursday and just now in the office (we are a lead generation company for IFA’s)
Not one person has heard of the #valueofadvice campaign by unbiased.co.uk.
Outside of the office no-one had heard of unbiased.co.uk
IFAs really are not being perceived as sufficiently different to the rest of the Financial Services industry to stand out. I miss the blue £ logo.
ChrisDaems
July 25, 2012Thanks for your comment Bill. I agree that we don’t do enough to promote ourselves as a profession. However I also think that there are organisations out there (like unbiased) who work hard to promote IFA’s as much as they can and that effort should be applauded.
Whilst I’m not sure we’ll ever compete with the football!, It’s important we all work hard to promote our service as honest, professional and adding genuine value to our clients lives. However I think we need some fresh ideas in order for us to connect with the great British public in a more meaningful way.
Great comments and thanks again!
Chris Daems