In Australia, demand for financial advice is on the rise
Currently, around 20 per cent of Australians are advised in some fashion. According to Investment Trends 2020 Financial Advice Report, “A record number of non-advised Australians realise they need professional financial advice. The pandemic has been a major catalyst, with 44% saying the COVID-19 situation had increased their likelihood of seeking advice[1].” By tapping into the 40 per cent of the population who plan to seek advice[2], the opportunity to service clients increases significantly[3].
Optimise your business model
With the market for advice shifting, 2021 is the perfect opportunity for you to take some time to reshape your business model, examining your cost and time spent per client. Many haven’t spent time analysing costs, due in part to the mixed income stream model many have grown accustomed to.
Changes brought about by COVID have helped advisers take advantage of technologies such as video conferencing, digital documents and e-signatures to streamline their practices, and gain back valuable time. In a user pays, fee-for-service world, it is crucial for you to understand how you can maximise the efficiency of your practice, including finding the right technological solutions to both suit and highlight the advice you give your clients[4].
Self-licensing under the umbrella of a partner like Lifespan Partnership can help you mitigate costs by helping to streamline your process, and choose from a pool of vetted outsource partners as well as benefiting from the cost-efficiencies of a shared-services model.
Develop and expand your practice
Advisers who operate under their own AFSLs can enjoy greater control and flexibility of their practices. This in turn enables you the freedom to decide how you might want to serve your clients.
As the experience with COVID has shown, engaging in proactive communications with clients contributes significantly to higher client satisfaction (almost 30% higher, 56% compared to 73% satisfaction[5]). However, during this time many temporarily halted business development activities to focus on existing customers. For those wishing to expand their practice, optimising branding and marketing efforts is an important next step.
Outsourcing through a partner like Lifespan Partnership can offer you the flexibility to match the services you require as you grow. This means your support services can grow as your practice does, and can also support you in a multi-dimensional capacity where and when needed.
The self-licencing future
While 2021 will undoubtedly bring its own set of challenges, the year ahead is a unique opportunity for those remaining in the industry to position themselves for future success.
At Lifespan Partnership, we think we have engineered some great support service options to assist you achieve excellence as you grow and develop your own distinctive business footprint. So what are you waiting for?
Contact Tony Mantineo, National Practice Consultant – Head of Lifespan Partnership, at tony.mantineo@lifespanpartnership.com.au for a confidential discussion on whether Lifespan Partnership may be the right next step for you.
[1] https://www.adviservoice.com.au/2020/09/demand-for-financial-advice-doubled-in-the-last-five-years-investment-trends-2020-financial-advice-report/
[2] https://www.coredata.com.au/pdf/Post-Pandemic_Australian_Advice_Landscape.pdf
[3] https://www.ifa.com.au/opinion/29008-the-challenges-and-opportunities-for-financial-advisers-in-2021
[4] https://www.ifa.com.au/opinion/29008-the-challenges-and-opportunities-for-financial-advisers-in-2021
[5] https://www.adviservoice.com.au/2020/09/demand-for-financial-advice-doubled-in-the-last-five-years-investment-trends-2020-financial-advice-report/
